טכניון מכון טכנולוגי לישראל
הטכניון מכון טכנולוגי לישראל - בית הספר ללימודי מוסמכים  
M.Sc Thesis
M.Sc StudentSamuel Bahat
SubjectThe Identification of Factors that Promote or Impede Local
Entrepreneurship in Development Towns in Israel
DepartmentDepartment of Architecture and Town Planning
Supervisor Professor Czamanski Daniel


Abstract

This research analyses a number of case studies of local entrepreneurs in four development towns in the north of Israel with the aim of pointing out factors influencing the existence and development of small locally owned productive firms in these towns.

The main issues addressed by the research are:

1.      Discussion of the role of the entrepreneur and of entrepreneurship in processes of local economic development.

2.      Identification of the conditions and factors which affect the development towns, as demonstrated by a number of towns in the north of Israel.

3.      Characterizing the business behavior patterns of the small development town entrepreneur.

4.      Investigation of the entrepreneuring rates in development towns through presentation of quantitative data on the local activities of productive units and their distribution in the sectorial and occupational structure of these towns.

Owing to the fact that the government and the settling institutions played a central role in initiating and carrying out the development process directed at these towns the local level had no significant role and any entrepreneuring activities which "grew from bottom" constituted no more than a marginal factor in the economy of the town. The assumption which guided the present research was that "environmental" conditions influence the readiness of entrepreneurs in development towns to become involved in risky entrepreneuring activity.

These conditions are influenced by many factors and in order to understand them, the present research has adopted the “case study” method in an analysis of the development of a number of small local firms in four development towns in the north of Israel. The case study analysis was also accompanied by an examination of 29O small factories in the eleven development towns in the north of Israel.

An examination of the extent of local entrepreneurship in these towns indicates that these are mainly concentrated in a limited number of sectors: metal, wood and printing moreover, employ no more than 14% of the force employed in industry. Thus the effect of these enterprises on the creation of new job places is very limited.

An analysis of, these case studies Indicates that among the many factors, which were defined as impeding factors the functioning of small local businesses in development towns and their ability to expand are detrimentally influenced by the availability of financial Institutions, the accessibility of information and professional advisory bodies, the methods by which ties with suppliers are formed, the costs of production and patterns of management. It can be assumed that these factors and others are responsible for the creation of en unsympathetic "environment" for entrepeneurising activities and that means and solutions should be formulated which will ameliorate Influences and provide the small entrepreneur with the appropriate business tools for contending with this environment.