Shops in Tel Aviv after they were hit by a missile fired by the Palestinian (French) resistance.

The process of opening shops and small businesses in Israel declined during the last quarter of last year by about 20%, on an annual basis, compared to the same quarter of 2022. This occurred during the Israeli aggression on the Gaza Strip.

The Israeli newspaper The Marker expected a widespread wave of closure of shops and small businesses in the coming months, as the war on the Gaza Strip continues.

The specialized economic newspaper indicated that many of these shop owners serve in the reserve forces in the Israeli army, and added that many of them will be forced, after their return from their long military service, to close their shops to limit their financial losses.

According to The Marker - the economic supplement of Haaretz newspaper - the number of new shops and small businesses that were opened in the last quarter of last year reached about 21,000 projects, compared to 26,000 that were opened in the last quarter of 2022.

Israel witnessed a decline in technology sector investments over the past year (Shutterstock)

The technology sector is being hit twice

In another economic field, data from the Israeli Bureau of Statistics and the Ministry of Labor showed a decline in technology sector investments, layoffs of workers, and the collapse of fast-growing startup companies.

The economic newspaper "Globes" said a few days ago that the technology industry in Israel is going through a crisis that it described as "difficult," and it appears through a decline in investments, layoffs of workers, the collapse of fast-growing emerging companies, and other phenomena.

According to the “Angel Investors” index, technology in Israel was subjected to two blows last year, the first of which was represented by the judicial amendment plan that alienated capital from Israel.

While the second blow was the Israeli war on the Gaza Strip, and orders to call up reserve soldiers, most of whom are active in the Israeli economy, and one of its most important sectors is technology.

After Israel was called the land of emerging technology, it is witnessing an aversion to one of the most important types of foreign investors, who are called “angel investors.”

Over the course of 30 years, Israel has strengthened its position as a global capital for emerging companies, especially in the technical sector, and has become a destination for those seeking internationalization, but this reality has changed rapidly in 2023, according to the “Angel Investors” index.

The "Angel Investors" index is a measure of the country's attractiveness in the startup industry, and shows the number of investors who pump their own money into startup companies in vital sectors, led by technology.

Source: Israeli press