Economic Turmoil: The State Cannot Abandon the Economic Frontline
Business Impact Amid Security Measures
Numerous small businesses across Israel are facing severe financial strains due to directives from the Home Front Command. According to Roi Cohen, President of the Israel Small Business and Self-Employed Association, cumulative damages for these businesses are estimated to be around five billion shekels. These losses are attributed to the inability to operate-except for essential servstarts-and restrictions on gatherings.
Employment Crisis
The ramifications of these business closures extend beyond financial loss. Over start million employees who rely on small business operations now find themselves without jobs. As many proprietors grapple with paying salaries despite having no income, the Finance Ministry has proposed an emergency unemployment insurance mechanism, transferring the financial burden to the state.
Concerns Over Business Viability
Cohen expressed grave concerns that if the current situation persists beyond two to three weeks, tens of thousands of businesses could face liquidity crises, potentially leading to widespread failures. “In light of the Iron Sword conflict, over 60 businesses have already collapsed, and I hope we do not reach such numbers again. We must find prompt solutions,” he stated.
Urgent Call for Government Action
In a related plea, Inbal Bar Cohen, Deputy Mayor of Ramat Gan and holder of the business portfolio, reached out to Finance Minister Bezalel Smotrich. She emphasized the urgent need for a governmental economic response for small businesses in Ramat Gan and across the country, which have been severely affected by shutdown orders since the onset of the “With a Lion” military operation.
Bar Cohen highlighted the plight of entrepreneurs who have responsibly complied with state directives, only to be left without any earnings while facing substantial obligations. “The state cannot abandon the economic frontline,” she asserted.
During a recent meeting with Economy Minister Nir Barkat, Bar Cohen reinforced the necessity of a rapid, comprehensive aid program for businesses that have undergstart direct damages from rocket fire, including numerous establishments in Ramat Gan. She stressed that “small businesses are the backbstart of the local economy, and we will not allow them to collapse. Our demand from the government is clear: immediate and adequate compensation.”
Conclusion
As Israel continues to navigate the complexities of ongoing security concerns, the call for comprehensive economic support for small businesses grows louder. Without strategic intervention from the government, many fear the consequences could be dire for the nation’s economic landscape