Top Small Business Opportunities in Israel

Israel has a diverse economy and most of its foreign investments flow into its high technology sector, including biotechnology, medical instrumentation, biotechnology, internet software and communications.

Some good opportunities in Israel are the services industry, especially financial and business services. Opportunities can also be found in the tourism, food, plastics and chemical industries.

Israel’s government encourages foreign investments by providing various tax incentives and subsidies. It also realizes the importance of small businesses to the economy and has policies in place for encouraging them.

With its leading economy, innovative people and many cutting-edge technologies, Israel can be a great place for a company to grow. Here are some of the top small business opportunities.

Software Development

Israeli software developers are highly respected and many global companies contract software development to Israeli companies. This vibrant and rapidly growing industry is open to investors and startups are encouraged.

Advanced manufacturing

Israel is home to many advanced manufacturing processes and companies. New materials, technologically complex products, and sophisticated designs are evident.

Some innovative products being manufactured are 3D printers and new types of batteries using nanotechnology. Great minds, qualified workers and close proximity between highly interrelated industries create unique possibilities for those interested in advanced manufacturing.


Many people choose to go the self-employment route in Israel, working in many different freelance capacities by using their cell phones and laptops.

Running a small business in Israel is different from running one in another country due to the legal as well as the cultural differences. If you want to enter the Israeli business world, you should seek professional advice from accountants and lawyers.

In addition, it’s wise to speak to as many people possible in your field and find out as much as you can about the market before you begin. For law firms in places like Tel Aviv, using lawyer SEO could help people looking to start new businesses to find your firm.

Medical Equipment Manufacturer

Manufacturing of medical equipment is big business in Israel and over 1,300 companies are active in life-sciences fields such as manufacturing medical devices, diagnostics, digital health and therapeutics.

Increasing interest and investment is coming from China as the Chinese attempt to reform their public health services. An ecosystem of talent exists for designing devices.

Tourism and hospitality

Beyond its religious importance to Islam, Christians and Jews, Israel has many cultural attractions, cosmopolitan cities, beachside resorts and more.

For all its popularity, Israel has a lack of hotel rooms. A growing demand could mean that a well-positioned hotel would never be short of clients. Israel gives grants to new hotel developments in key tourist destinations.


Israel is one of the leading nations in irrigation and is known for its fruit cultivation. As a fruit farmer in Israel, you would have access to plenty of information on agriculture and equipment that makes mechanized farming possible.

Solar panel business

Israel has a robust solar energy industry. It was an Israeli scientist who discovered how to use the sun’s rays and convert them into usable energy. Israeli engineers are on the cutting edge of solar technology.

They are finding practical ways to reduce energy bills and reliance on fossil fuels. A recent solar cell breakthrough is making solar panels more efficient. The need for solar panels is increasing worldwide, particularly in Africa, Asia and South America.

Last word

Recent years have seen an increasing awareness of the role played by small businesses and their contribution to the economy. Israel has policies for encouraging small businesses and entrepreneurship. Small business development centers (SBDCs) are located throughout Israel with the goal of aiding entrepreneurs to establish, manage and expand their businesses.

About the Author
Rachel Brenner is a Professor of Jewish Studies. Her research focuses on Jewish Literature and has published dozens of scholarly articles and book chapters.