Save small businesses: The backbone of Israel’s economy needs help - opinion

When we speak about Israel’s economy, we often focus on the giants: the hi-tech sector, major corporations, and large-scale industries.

Over the past five years, these entrepreneurs have faced one crisis after another: first the COVID-19 pandemic and then the ongoing ripple effects of the October 7 attacks, which included mass evacuations, lack of tourism, and a general feeling of uncertainty and tension sweeping the country.

Each event has left its mark – businesses shuttered overnight, supply chains disrupted, and customers vanishing without warning. And yet, time and again, I have seen something remarkable: resilience.

The small businesses we work with at SparkIL – the first peer-to-peer lending platform that connects lenders from around the world directly with Israeli entrepreneurs – are not simply enterprises; they are realistic dreamers building real companies with real value.

People have poured their energy, resources, and heart into them, and they are unwilling to let those dreams fade. To survive, they adapt – shifting their models, finding new markets, and embracing creativity.

At SparkIL, we have also had to adapt. When we saw that entrepreneurs needed breathing room before repaying loans, we introduced grace periods. When we realized that financial capital alone was not enough, we partnered with Ogen and Keren Shemesh to connect business owners to a vast network of mentors – more than 1,200 top executives volunteering their expertise.

When business owners told us they were drowning in bureaucracy or struggling to understand emerging technologies like AI, we created communities of support, webinars, and targeted guidance.

But despite these efforts, the reality remains stark: More businesses closed this year in Israel than opened. That should set off alarm bells. For many, the challenge isn’t a bad business plan, but an impossible environment – war, displacement, and government red tape that makes getting help feel like an obstacle course.

What gives me hope are the stories of those who keep going, not out of financial ambition but out of deep commitment to this country. Farmers moving south to plant new vineyards, families reopening shops in the North after evacuation, and entrepreneurs whose Zionism fuels their determination to rebuild.

It's also gratifying to know that we have the support of the Jewish Federations of North America, which, through its generous emergency fund, made many of these loans possible.

Equally inspiring are the thousands of lenders from around the world – ordinary people who log on to SparkIL, read these business owners’ stories, and choose to help. Unlike anonymous donations, these lenders know exactly where their money is going. Many return again and again, eager to support another dream.

By meeting young people where they are, they experience concepts around financial literacy, philanthropy, and impact lending. They are learning that even with a modest sum, they can strengthen the fabric of Israeli society.

Yet, while young people who will be the decision-makers of tomorrow understand the importance of supporting small businesses, we need today’s policymakers and philanthropists to act with the same urgency.

To policymakers and philanthropists, I say this: Israel cannot afford to let small businesses fail. They are the backbone of our economy, the lifeblood of our communities, and a critical part of our national resilience. Cutting red tape, providing faster and more equitable government support, and fostering partnerships with the nonprofit and private sectors are not luxuries – they are necessities.

We have seen the strength of Israel’s entrepreneurs. What they need now is for the rest of us – government, philanthropy, and civil society alike – to stand with them. If we do, these businesses will not only survive; they will rebuild stronger, carrying all of us forward.