Israel has enjoyed excellent startup success in recent years. In fact, Israel’s consistency in producing successful startups has led to Israel becoming recognized as a startup hub of the world just like Silicon Valley in America. Tel Aviv is Israel’s version of Silicon Valley, and it is the location where you can find many of Israel’s most successful and growing startups. Tel Avis has one of the highest numbers of startups per capita in the entire world, and this trend seems to be only increasing.
Fortunately for Israeli startups, they benefit from a wide variety of programs available in Israel that are not available in other countries. For example, Israel has over 30 programs that are geared specifically for startups to help them secure funding.
Advanced technology has also helped younger generations understand the tech sector or to apply that technology to other industries. From computer coding, app development, NAS recovery, to social media marketing, young Israelis are utilizing these new technologies to provide their companies with a comparative advantage. In addition to their technological understanding, the requirement to serve in the Israeli army has also exposed many youngsters to a wide variety of technologies and team building activities that they would not have experienced in other countries. In many cases, young Israelis confidence is due to their experience in the army, which leads to young entrepreneurs believing that they also have the same ability to bring their entrepreneurial ideas and innovations to life too.
Therefore, we can see that it is a cumulative effect that has helped push many of these entrepreneurs forward with their ideas and business plans. Once you get the initial momentum started, it will begin the snowball effect, especially with many people following in the footsteps of their friends and family members. Israelis will also help support other Israelis, making the startup culture stronger in the process.
Of course, there are additional benefits to living in a smaller country like Israel. A smaller country allows its citizens to know one another better, and enable entrepreneurs to have a better understanding of their target market or customer demographic. These tight-knit communities would also allow entrepreneurs to connect with other business leaders, role models, mentors, suppliers, and consumers in their community.
Israel is isolated, and a lot of the innovations of the past (e.g., water systems), were created due to necessity. As the old adage goes, “necessity is the mother of invention.” Research and development have been spurred in many different sectors in part thanks to this “survival” aspect of being in an isolated country. This isolation has also led to a new mentality for Israeli people too to be problem solvers and innovative. Agricultural products, for example, have become a popular startup choice because this industry allows for faster, and more efficient growth that is specifically tailored to this region.