|M.Sc Student||Simons Debora|
|Subject||An Evaluation of Current Efforts to Promote: Entepreurship I|
|Department||Department of Architecture and Town Planning||Supervisor||Professor Daniel Czamanski|
In recent years there has been a dramatic increase in the number of initiatives for the promotion of local economic development, in developed countries. A large proportion of the measures pursue employment objectives through the promotion of entrepreneurship. In Israel also a number of initiatives for the promotion of entrepreneurship have emerged, mostly in the last three years. Tools must be developed for the evaluation of current local economic development activities; to facilitate efficient institutional development and to adapt current experience to the context of developing countries.
This research evaluates the new initiatives for the promotion of entrepreneurship in Israel. The research is set within a New Institutional Economics context. A transaction cost framework is used to evaluate the coordination and focus of two sample initiatives; loan fund initiatives and centers for the promotion of entrepreneurship.
Current initiatives for the promotion of entrepreneurship in Israel are described in detail; to contribute to the scarce literature on Israeli local economic development policy and to facilitate a comparison of Israeli efforts with that elsewhere. The Delphi method is applied to provide two respective expressions of evaluation criteria for the evaluation of an entrepreneur and his project. Analysis of the results identifies a number of points of potential conflict in the operational approach of the two initiatives. Recommendations are made for the reduction of transaction costs within the institutional framework developed for the promotion of entrepreneurship. A supporting study clarifies information obtained through the Delphi study and contributes to the background information on initiatives.
There is a need for the development of a forum of informal exchange between initiatives and opportunities for mutual learning. The standardization of procedures for the evaluation of entrepreneurship and the processing of information are also recommended. Furthermore, the research identifies a lack of equity capital available to small businesses in Israeli financial markets. The development of a suitable equity market and the development of the potential of public- private partnerships in local economic development remain to he investigated. The establishment of the new Israeli Small Business Authority is seen as a potential means to achieve the policy recommendations made, and to pursue the much needed research in the area of entrepreneurship promotion.