A survey by D&B Israel has found that Ramat Hasharon is the best city in Israel to open a business. This conclusion is based on the fact that only one tenth of businesses in the city are in danger of closure, compared with the nationwide average of 18.2%.
D&B Israel surveyed the business climate in 30 major Israeli cities and towns, covering small companies and businesses (up to ten employees), medium-sized businesses (10-100 employees), and all businesses and companies in the city.
The survey found that Ramat Hasharon was the best city in Israel to open a business, followed by former first place city, Ramat Gan, where 11% of businesses are at risk of closure.
Tel Aviv, Ra’anana, and Herzliya, where 13% of businesses are at risk of closure, tie for third place; Bnei Brak is in sixth place (14%); and Kfar Saba and Petah Tikva tie for seventh place(16%).
Tiberias is the riskiest place to open a business - 32% of businesses in the town are at risk of closure. Beersheva, Bat Yam, Kiryat Gat, and Ramle tie for the penultimate rank (29%); then Acre (28%); Ashkelon (27%); and Afula (26%).
Tiberias is also the riskiest place to open a small business 37% of small businesses are at risk of closure. Above it are Beersheva (36%), Kiryat Gat (35%); Acre, Ashdod, and Afula (34%); and Ramle and Ashkelon (33%).
Ramat Gan, where 15% of small businesses are at risk of closure, is the best city to open a small business. Ramat Hasharon is in second place (17%), followed by Tel Aviv, Herzliya, Bnei Brak, and Ra’anana (19%). The national average of small businesses at risk of closure is 26%.
Among Israel’s large cities, Tel Aviv is the best city to open a business, where 13% of businesses are at risk of closure, followed by Jerusalem (18%) and Haifa (20%).
The survey found that the safest cities or towns for opening a medium-sized business were Ramle, Ramat Hasharon, Ramat Gan, Tel Aviv, and Bnei Brak. The riskiest cities were Acre (28% of medium-sized businesses are at risk of closure), Beersheva (22%), Upper Nazareth (21%), and Ashkelon (20%).
D&B Israel general manager Reuven Kuvent said that the difference between the center of the country and outlying areas, in terms of risk of opening a business or company, was enormous. He said the study showed that cities in central Israel were the safest for opening a business, whereas the business climate in outlying areas, especially in the Negev and Galilee, was harsh, and the risk of business closure was higher than the national average.
Published by Globes [online], Israel business news - www.globes.co.il - on August 23, 2005