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Overcoming National and Personal Crises Through Entrepreneurship and Innovation Entrepreneurship and Innovation in Israel – GEM 2019/2020 National Research Report

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Overcoming National and Personal Crises Through Entrepreneurship and Innovation Entrepreneurship and Innovation in Israel – GEM 2019/2020 National Research Report Overcoming National and Personal Crises through Entrepreneurship and Innovation Entrepreneurship and Innovation in Israel – GEM 2019/2020 National Research Report Prof. Emeritus Ehud Menipaz Yoash Avrahami, M.Sc. Global Entrepreneurship Monitor Global Entrepreneurship Monitor Overcoming National and Personal Crises through Entrepreneurship and Innovation Entrepreneurship and Innovation in Israel – GEM 2019/2020 National Research Report Prof. Emeritus Ehud Menipaz Yoash Avrahami, M.Sc. Ira Center for Business, Technology and Society Ben-Gurion University All rights reserved. Do not duplicate any portion of this publication without the prior written consent of the Research Team, except for the purpose of citing short sections in reviews and similar publications, while explicitly quoting the source. When quoting from this report, please use the following: Menipaz, E., Avrahami, Y., Entrepreneurship and Innovation in Israel - GEM 2019/2020: National Research Report, Beer Sheva, Israel: Ben Gurion University. 2 Contents Introduction ....................................................................................................................................................6 Executive Summary ........................................................................................................................................8 1. Introduction ...........................................................................................................................................10 1.1 GEM 2019 Terminology...................................................................................................................10 1.2. GEM.Participating.Countries.and.Classification.-.2019 ....................................................................12 2. Methodology of the 2019 Study..............................................................................................................13 2.1 GEM Study Model (Source: GEM Global 2016) ...............................................................................13 2.2 Survey of the Adult Population in Israel and Experts Survey in Israel ................................................14 3. Characteristics of Entrepreneurship in Israel by Level, Sector, Gender, Age, Income, Motivations, and Aspirations .......................................................................................................................................16 3.1 TEAs in the Forming Stage up to 3.5 Years .......................................................................................16 3.2 Perception of Business Opportunities among the Israeli population by Sector, 2019 ........................18 3.3 Knowledge of Entrepreneurs Who Started New Businesses in Israel in the Last Two Years, GEM 2019. .....................................................................................................................................20 3.4 Ratio between Women and Men in TEAs in Israel Compared to Other Countries, GEM 2019 ..........22 3.5 Forecast of Employment Growth in TEAs and EBs in Israel, 2019 .....................................................24 3.6. Difficulty.Starting.a.Business.in.Israel,.2019,.and.in.Comparison.with.GEM.Countries ....................27 3.7 Perception of Skills and Capabilities to Start and Manage a Business in Israel’s Population and in GEM Countries, 2019 .....................................................................................................................28 3.8 Fear of Failure Starting a Business among the Adult Population as a Deterrent of Entrepreneurship in Israel, 2019 .................................................................................................................................30 3.9 Entrepreneurial Intentions in the Adult Population in Israel to Start a New Business within the Next Three Years, 2019 ............................................................................................................................31 4. EB Characteristics in Israel, 2019 ............................................................................................................32 5. EEA Level and Characteristics in Israel, 2019 ..........................................................................................40 6. Activity of Informal Investors (Angels) in Israel, 2019 ..............................................................................45 7. Technological Entrepreneurship in Israel, 2019.......................................................................................48 8. Index of Perception of Desired Equality in Israel and in GEM 2019 Countries.........................................49 9. NECI in GEM 2019 Countries GEM 2019 ...............................................................................................51 9.1 Factors that Limit Entrepreneurship in Israel according to the Experts’ Survey, 2019 ........................55 9.2 Recommendations of the GEM 2019 Study for the Executive Branch in Israel ..................................57 Bibliography .................................................................................................................................................59 3 List of Figures Figure 1: Distribution of the samples population in Israel by sector and query method, 2019 ......................14 Figure 1: Distribution of the sample population in Israel by sector and query method, 2019 ........................14 Figure 2: Distribution of the samples population in Israel by sector and query method, 2018 ......................14 Figure 3: TEA in Israel by sector and gender, 2019 .......................................................................................16 Figure 3(a): TEA levels in the adult population in the participating countries, GEM 2019 .............................17 Figure 4: Perception of business opportunities among the population in Israel, 2019 ...................................18 Figure 4(a): Finding and seizing business opportunities, level of implementation of profitable opportunities and perception of innovation levels by others, GEM 2019 ...........................................................................19 Figure 5: Level of knowledge of entrepreneurs in the population sectors in Israel, 2019 ..............................20 Figure 6: Knowledge of entrepreneurs who established a business in the last two years, all countries GEM 2019 ...............................................................................................................................21 Figure 7: Ratio between male and female entrepreneurship in the TEA stage in Israel, 2015-2019 ...............22 Figure 7(a): Ratio between male and female entrepreneurship in the TEA stage in GEM countries, 2019......23 Figure 8: Percentage of TEAs and EBs by age groups in Israel, 2019 .............................................................24 Figure 9: TEA by gender and sector, Israel, 2019 - forecast of 19+ people employed within five years .........24 Figure 10: TEA by gender and sector, Israel, 2019 - forecast for 10+ people employed and more than 50% growth within five years ...............................................................................................25 Figure 11: Difficulty starting a new business in Israel, GEM 2019 ................................................................27 Figure 12: Ease of establishing a new business in Israel, GEM 2019 .............................................................28 Figure 13: Perception of the level of knowledge, skills and abilities in the adult population in developed countries regarding the establishment and management of a new business, GEM 2019 ...............................29 Figure 14: Skills to start and manage a new business, by sector and gender (nonentrepreneurs), Israel 2019 ..................................................................................................................................................29 Figure 15: Fear of failure starting a business among the adult population as a deterrent of entrepreneurship in Israel, 2019 ..................................................................................................................30 Figure 16: Entrepreneurial intentions in the adult population in Israel to start a new business within the next three years, 2019 .........................................................................................................................................31 Figure 17: Level of EBs in Israel by sector and gender, Israel 2019 ...............................................................32 Figure 18: Forecast of 19+ people employed in five years among EBs, Israel 2019 .......................................33 Figure 19: Forecast of 10 or more people employed above 50% growth among EBs, Israel 2019 .................34 Figure 20: Comparison of changes in TEA and EB levels in Israel, 2007-2019 ..............................................35 Figure 21: Trends in the development of young TEAs and veteran EBs, and intention to start new businesses within three years among the nonentrepreneur population in Israel, 2007-2019 ..........................................36 Figure 22: Level of EBs by sector and income tertiary, Israel 2019................................................................37 4 Figure 23: Reasons for entrepreneurs closing businesses, Israel 2018-2019 .................................................39 Figure 24: Level of EEA by sector and gender in the adult population, Israel 2019 .......................................40
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