The economic impact of the ongoing war in Israel is widespread, affecting various sectors beyond tourism, including retail and services.
The government's slow response to the needs of self-employed individuals highlights systemic issues in bureaucratic processes and policy-making.
If the government fails to implement a comprehensive support plan for small businesses, the economic landscape in Israel could see a significant contraction, leading to widespread unemployment and business closures.
The job cuts at Ford in Cologne may lead to increased tensions between the company and labor unions, potentially resulting in strikes or protests as workers seek to protect their livelihoods.
Economic Challenges for Self-Employed in Israel Amid War Crisis
The self-employed and small business owners in Israel are facing unprecedented challenges as the ongoing war continues to impact the economy. According to Roy Cohen, President of Lahav - the Chamber of Self-Employed in Israel, the situation is dire, with fears that up to 80,000 businesses could close by the end of 2024. The war has severely affected tourism, with a drastic drop in visitor numbers, leading to significant losses in the hospitality and food services sectors. Cohen emphasizes that the government has been slow to respond to the needs of these businesses, which are crucial to the economy, contributing 55% of its output. The lack of timely compensation and support has left many business owners in despair, struggling to maintain operations and facing increased loan requests as they seek to survive.
Cohen criticizes the government's approach, stating that the bureaucratic delays and patchwork solutions are inadequate for addressing the urgent needs of the self-employed. He points out that the upcoming 2025 budget could exacerbate the situation, with proposed tax increases and cuts that would further burden small businesses. Cohen argues that the government must shift its perspective, viewing the self-employed as an investment rather than a liability, to foster growth and stability in the economy.
