Dun & Bradstreet Israel states that Israel has a ratio of 24 people per business. The finding was made in a comparative study on the ratio of businesses in a country and its population. Israel was ranked 25, behind Western countries and many emerging markets, such as Peru, South Africa, Brazil, Romania, Mexico, and Malaysia.
China and India have a ratio of more than 500 persons per business.
Norway and the Czech Republic topped the rankings, with a ratio of four persons per business. They were followed by New Zealand, Sweden, Hong Kong, and Belgium, with a ratio of five persons per business. Singapore, which many people like to compare with Israel, was ranked eighth, with a ratio of six persons per business.
The US is ranked 13th, with a ratio of seven persons per business. Ireland outranks Israel in 18th place, with a ratio of twelve persons per business.
Dun & Bradstreet Israel general manager Reuven Kuvent attributed Israel's lag behind Western countries to the hurdles faced by entrepreneurs. "Despite the entrepreneurial character of Israelis, young entrepreneurs face many difficulties in opening a business because of the need for a large amount of starting capital and the high taxes on companies and businesses," he said.
Kuvent added that another factor was the lack of government encouragement for small and medium-sized businesses.
Dun & Bradstreet Israel says that 43,800 new businesses are opened every year in Israel, but that 38,600 business close down.
Published by Globes [online], Israel business news - www.globes-online.com - on August 20, 2008
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