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Number of New Israeli Businesses More than Doubled in 2022

January 24, 2023

by: Kate Norman

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The number of new Israeli start-ups is growing.

Tuesday, 24 January 2023 | Keeping true to its moniker of “the Start-Up Nation,” Israel saw more than double the number of new companies in 2022 compared to 2021.

A record-breaking 142,100 new companies registered with the Israel Tax Authority in 2022, i24NEWS reported, compared to 64,900 in 2021—a 100% increase.

The CEO of Keren Shemesh, a not-for-profit organization that mentors and supports Israeli entrepreneurs, told i24NEWS that the spike in new businesses opening files with the Tax Authority “is not surprising.”

“In 2021, there was a significant decrease in the number of new businesses due to the coronavirus,” Keren Shemesh CEO Monica Lev Cohen added. “In 2022, when the economy started to recover, many employees who were laid off or went on unemployment went into entrepreneurship.

“Some have undergone training which has enabled them to open a new business,” Cohen continued, “while others have decided to open a business at the same time as they were employed.”

Cohen predicted that the trend of new businesses opening will continue throughout 2023, i24NEWS reported, as many high-tech employees have been laid off and will likely stage a comeback as freelancers.

Israel’s tech industry took a slump in 2022, when funds raised by start-up companies were nearly cut in half, the Times of Israel reported earlier this month, citing a report by Start-Up Nation Central, which monitors trends in the Jewish state’s tech sector.

Start-ups raised a mere US $15.5 billion in 2022, compared to US $27 billion the year before. The beginning of 2022 started off well, but took a turn in the latter half, the Times of Israel reported, with rising inflation and the global supply chains affected by Russia’s invasion of Ukraine in February 2022.

The downturn led to thousands of layoffs in Israel’s tech industry. Start-Up Nation Central CEO Avi Hasson told the Times of Israel that Israeli tech companies either slowed their growth or laid off between 5% and 10% of their staff.

But according to Cohen, the laid-off Israeli tech workers are turning their lemons into lemonade by starting their own companies.

Last year was another fruitful year for Israeli innovation. NoCamels, a news site that covers Israeli innovation, published a list of 10 “wow” Israeli innovations from 2022. The list included the world’s first all-electric airplane, a de-printer that erases ink from printer paper and allows businesses to reuse paper, a stand-up wheelchair, milk made from lettuce, flying robotic fruit harvesters and an outdoor air conditioner powered by liquid nitrogen rather than electricity.

Posted on January 24, 2023

Source: (Bridges for Peace, January 24, 2023)

Photo Credit: Jernej Furman/flickr.com

Photo License: Flickr

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