Israeli small businesses have been struggling with uncertainty following the country's latest conflict with Iran.
On the surface, Tel Aviv seems to be back to its usual bustling pace, with streets full of life, stores open, and coffee shops serving espresso -- much as they did even after Hamas launched its unprecedented attack on southern Israel on October 7, 2023, and during the prolonged military operation in Gaza that followed.
But this time, following the recent conflict with Iran, the atmosphere feels different.
"The last two weeks were very difficult, even more difficult than the 7th of October. It was very dangerous in Tel Aviv, so the city was empty, so it was very, very hard," said Kiki Nitzan, a coffee shop owner.
Industry analysts noted that, in addition to coffee shops, other small businesses have also faced significant financial pressure, as they must cover running costs such as rent and wages despite a sharp decline in consumer spending.
"In our survey, we can see that the very small businesses -- we're talking about businesses that are employing 50 employees or less -- we can see that they are decreasing their prediction, and they are not going to recruit new employees to their businesses because of this uncertainty," said Dror Litvak, country manager at ManpowerGroup Israel.
Litvak explained that, when it comes to government funding, priority will be given to relocating people whose homes have been damaged or destroyed, rebuilding those homes, and increasing the defense budget.
He pointed out that small businesses will have to wait a relatively long time to receive assistance, which could add to the economic hardships already facing these struggling businesses.
"It takes months and months till actually the Ministry of Treasury transfers money to small businesses. At this time, those small businesses don't have credit. They lose clients, they don't have income in this period, and they need to pay salaries to their employees. So, first of all, if the grants come, they come too late," he said.
In a region marked by uncertainty, long-term plans have become a luxury few can afford. Small business operators like Kiki Nitzan say they try to focus on the present and set aside worries about what lies ahead.
"We cannot know what's happening next week or in a few months, if [there will be] another war or something like that. So the idea is not to make a plan for the long time, and to live in the moment for now,” said the coffee shop owner.
Israeli small businesses struggle with uncertainty amid protracted conflict
Israeli small businesses struggle with uncertainty amid protracted conflict
