Running a Small Business in Israel

Conducting Market Research | Starting a Small Business - MATI | Internet Marketing | Bringing a Business from North America to Israel - Leavi | Self-Employment (Atzma'i) | Understanding Israeli Business Practices | Working with Overseas Markets | Knowledge of Hebrew

See Also: Loans and Consultation Services for Entrepreneurs | Networking Forums and Advertising Opportunities

The business world is more flexible than many other areas of employment, since it does not require specific licensing procedures or educational background. You can find business opportunities in every part of Israel and to match a variety of lifestyles. Whether you open your own business or look for employment in an existing company, the challenge in the Israeli business world is finding your particular niche in a market that is vastly different from the U.S., Canada or the UK.

Before you open a business or start to look for employment in the field, the Nefesh B’Nefesh Employment Department can provide you with professional contacts who can give you expert advice about business opportunities and the Israeli market. Write to us at employment@nbn.org.il.

Nefesh B'Nefesh Olim are invited to advertise services using the NBN online business directory: http://www.nbnbusiness.co.il.

In addition, Olim are invited to join the NBN E-Forum for Small Business Owners. This group is intended for NBN entrepreneurs and entrepreneurs-to-be to
exchange ideas and information, tips and challenges, recommendations and concerns -- and to network. To join please go to: http://groups.yahoo.com/group/NBNentrepreneurs

Conducting Market Research

If you have experience in a particular business and are interested in researching your options in Israel, Israel's Science and Technology Home Page at www.science.co.il links to a wide range of industries such as banking and finance, biotech, academic institutions, etc. and can provide you names of companies in Israel in your field.

For extensive information about a range of industries in Israel, see http://2binisrael.org.il/home_en.php. The site lists over 60 business profiles for many fields, such as: Assisted living facilities, automobiles, blacksmithing, bookkeeping, bookstores, car dealerships, car rentals, car wash facilities, carpentry workshops, catering services, CD stores, clothing stores, coffee shops, confectionaries, convenience stores, delicatessens, dental clinics, driving instructors, felafel stands, and many more. To view these articles, go to http://2binisrael.org.il/home_en.php and click Business Profiles. The articles open in Word format.

Starting a Small Business - MATI

If you are interested in starting a small, local business, subscribe to local community email lists and learn about competitors and similar businesses.  Israel is a small place, so if you are starting something new in a community, make sure there is something unique about your business.

For an introduction to the ins and outs of starting a new business, MATI (see www.mati.org.il) offers one-on-one counseling, as well as courses on how to go about opening, running and financing a business in Israel. MATI also guides you through the process of taking out business loans in Israel. Hebrew-language courses are run frequently; English-language courses are run less frequently in Jerusalem, Ramat Gan, Haifa, Bet Shemesh and Ra’anana. Business owners who complete the primary consulting stage at MATI can receive one free consultation from a top specialist in a chosen field.

For more information about services offered by MATI, see www.mati.org.il or contact:

Jerusalem Business Development Center
P.O.B. 52169, 9 Ha'uman Street, Jerusalem 91521
Tel. 972-2-6794242, Fax: 972-2-6793838
E-mail: info@mati.org.il

There's No Business Like Small Business Naomi Saada of MATI, the Jerusalem Business Development Center, brings to light the ins and outs of setting up a small business in Israel while Shira Tjeung Alverez, an NBN Olah, lends an insider's perspective to the MATI course.On Radio NBN.

Internet Marketing

If you are starting an Internet marketing business, the following blog provides resources to help you build your site: Nbninternetbusiness.blogspot.com

The Intrepid Entrepreneurs Cake decorating queen,  Reena Schindman and home improvement maven, Nachum Eilberg join us In The Studio to gab about the challenges and rewards of stepping outside the box and professionally reinventing oneself in Israel.

Bringing a Business from North America to Israel - Leavi

For information about bringing your business from North America to Israel, see www.leavi.com. Leavi helps North Americans initiate business activities in Israel.  This non-profit organization maintains a network of accountants, lawyers, and business consultants with North American and Israeli experience to offer personalized assistance in understanding Israeli business regulations and practices, and ensuring access to the multitude of governmental and private benefits that are available to entrepreneurs.  For more information, email ron@leavi.com.

Self-Employment (Atzmai)

Being Self-Employed (Atzmai) in Israel, as anywhere else, has its advantages and disadvantages. On the one hand, being atzmai offers the advantage of independence and flexibility. On the other hand, the lack of guaranteed work and income is a disadvantage.

Many types of professions are appropriate for self-employment, including consultants, translators, tutors, dentists, writers, trades persons, artists, etc.

Before becoming atzmai, consult with legal and accounting professionals. It is necessary to open a file, or tik at the Income Tax Authorities (Mas Hachnasah), Value Added Tax (Maam) and National Insurance Institute (Bituach Leumi).

If you need to consult with an American or Canadian accountant in Israel, see AACI's List of Accountants.

Understanding Israeli Business Practices

There are legal and cultural differences that make it hard to jump into the Israeli business scene when you first arrive. Running a business in Israel is not the same as running a business in the U.S. or Canada.

When you enter the Israeli business world, seek good professional advice from both lawyers and accountants. In addition, speak to as many people as possible in your field, and find out whatever information is available about the market before you begin.

If you need assistance in identifying contacts in your field, write to the Nefesh B’Nefesh Employment Department at employment@nbn.org.il. Nefesh B’Nefesh is connected with many individuals, and would be happy to assist you in building up a professional network that will help make your business a success.

Working with Overseas Markets

Whether you are involved in a large-scale operation or a small, home-run business, the wonders of the Internet and VoIP phone lines have made it easy to work with overseas markets. The time zone differences, however, cannot be avoided. If you’re planning on working with U.S.-based clients, be prepared to work in Israel primarily in the afternoon and evening hours, when U.S. businesses are open.

In addition, if you are working with international clients you may need to travel abroad frequently, which can certainly affect your lifestyle and your ability to acclimate to your new Israeli environment.

Knowledge of Hebrew

If you are interested in working for an Israeli company or opening a business geared to the local Israeli market, a good working knowledge of Hebrew is essential, and it is strongly advised to take Ulpan upon arrival.

If your Hebrew is limited, you might want to consider opening your business in a community with a large number of English speakers, such as the greater Jerusalem area, Bet Shemesh, Ranana or Modi’in.

If you are opening a business geared towards the international market, you should be able to work almost entirely in English. It might be convenient to explore Internet-based business opportunities for the initial period after you first arrive.

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