Israel is now considered by many business leaders and experts internationally to be the home to one of the world’s best startup hubs, right behind Silicon Valley in San Francisco, California. Currently, there are a wide variety of innovations and advancements that are being developed in Israel and are ultimately benefiting the rest of the planet Earth. For example, Tel Aviv has the largest number of per capita startups in the world and it is also where the majority of Israel’s successful startups are also located. Israel’s tremendous startup success rate has even led to Israel now being considered a “startup paradise.”
Israel is also benefiting from an educated workforce which is enabling all of these breakthroughs and innovations. This talented and effective workforce and Israel’s startup success has attracted some of the largest and respected companies of the world, such as Amazon, AT&T, IBM, Google, Oracle, Facebook, among others, to acquire or invest in Israeli startups. You can even use your own as an example. If you stop and take a look at your home and your environment, then chances are you are benefiting from the research and development from an Israeli startup or business. If you own and use a smartphone device, are involved in Internet marketing or e-commerce, are working in the healthcare or pharmaceutical industry, then the chances are fairly high that the products you regularly use have some form of Israeli technology behind them.
One of the benefits of conducting business in Israel is its smaller size. Since Israel is a smaller country, it is a lot easier for entrepreneurs and business owners to conduct market tests, and to determine the needs of their customers. This ease of communication also enables business owners to remain in touch with their business partners, suppliers very easily in addition to their consumer base.
Israeli businesses are successful also because of their commitment to R&D (research and development). Israel is now spending more per capita than the average business on R&D projects and tests. Many business professionals believe that investing the companies profits into R&D is necessary for the business’ long-term survival. This research is allowing Israeli startups to develop new ideas and technologies that are both innovating and improving the entire world. One interesting statistic regarding Israel’s R&D is that Israel is spending almost double on research and development than the average country, according to The Organisation for Economic Co-operation and Development (OECD).
Being comfortable with technology has generally helped younger generations, in particular, understand the technology sector or to apply that technical knowledge to other industries. From coding, programming, to social media marketing, young Israelis (and younger people in general) are using these new developing technologies to beat their competition. In addition to their technological prowess, the requirement to serve in the Israeli army has also exposed many young Israelis to a wide variety of team and character building activities that they would not have experienced if they were living in another country.
As it is with many other things in life, once you get the initial momentum started, it will begin the snowball effect. This is especially true when Israelis follow the footsteps of their friends and family members into entrepreneurship. Israelis will also help support other Israelis, making the startup culture stronger in the process. Fortunately for Israeli startups, they also benefit from a wide variety of programs available in Israel that are not available in other countries. According to Quick Loans Direct, Israel has over 30 programs that are geared specifically for startups to help them secure funding and business loans.
As a world leader in research and development, Israel is also leading the way in the field of scientific publication. In the past decade, Israel is currently ranked third in the world. Israel is a thriving hub of science, research and development, and business, and this is contributing to their startup’s success. Tech incubators and accelerators are also readily available in Israel which contributes to Israel having the perfect culture for the startup lifecycle. In conclusion, there are a wide variety of factors contributing to Israel’s entrepreneurial growth and success.