About 15% of small and medium-sized businesses in Israel have begun operating online over the past year to cope with lower domestic sales during the war, according to a survey of 400 businesses by the Rushinek Institute for PayPal Israel. 60% of the small and medium-sized businesses (up to 50 employees) reported that they had been financially harmed by the war.
The survey found that only 42% of small and medium-sized businesses sell online (up 7% since 2020), and of these businesses 41% also sell abroad. Despite repeated declarations by countries and organizations about boycotts against Israelis, and despite the negative segment on social media towards the country, most of these businesses only began their overseas sales over the past year. 50% of these small and medium-sized businesses say that this is what have enabled them to survive financially in the current period.
PayPal VP and general manager Israel and Central and Eastern Europe Efi Dahan said, "The businesses in Israel, who are dealing with a complex reality, need to understand more than ever that the online arena is not just a nice addition, but can be an economically decisive factor."
He added, "The survey found that many business owners have still not integrated into this arena, with about a third insisting that this is a practice that is not accepted in their industry. In my view, they need new solutions and to break conventions, all the more so when about 25% of online sellers said that this channel helps them sell new products.
"Israelis have always led global trends when it comes to innovation, and I encourage small and medium business owners to do the same now."
Published by Globes, Israel business news - en.globes.co.il - on July 2, 2024.
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