A survey conducted in 2001 indicated that 18% of business owners in Arad report a 30% decrease in sales. The Arad-Tamar Economic Development Unit, funded by JAFI Partnership 2000, the Arad Municipality and the Tamar Regional Council, conducted this survey which covered 284 small and medium sized businesses.
"The survey ascertained by quantitative data our assessment of the situation, so we were not surprised", explains Arad Mayor Bezalel Tabib a long standing supporter of the Economic Development Unit.
"Small and medium size businesses make up the largest employer in the city - about 1300 jobs. We wanted to appraise the situation of businesses in the City. For some time now, we have witnessed recession and gradual and persistent decrease in business in Arad. "Notwithstanding", says Mayor Tabib, "it is important to note that in some sectors the problems encountered by businesses are more moderate as the clientele base was and remains the citizens of Arad whose number continue to grow thanks to Aliyah from the FSU and Argentina. Though people may be buying less and going out less consumerism remains lively. The main concern are businesses that service clients from outside the city, especially from overseas. This is why businesses connected to the tourism industry show the greatest loss".
Arad Tamar Economic Development Unit Director Ms Topaz Karmi notes that "everyday we deal with the question of how we can keep money in the city and Region. This is because some consumers choose to shop in Beersheva and sometimes even in the center of the country, even though the same products at the same price are readily found in Arad".
The survey findings show that one of the most important issues is the quality of services. This is why, several months ago, we conducted a unique training program for shop managers. During the course they were taught important management tools and skills, client services being one of the principle tools".
The Economic Development Unit was established a few years ago as a service for entrepreneurs and business owners in Arad and Tamar. Last year, the Economic Development Unit received requests for assistance from nearly 300 entrepreneurs. Among applicants, 61% were business owners, 30% were new immigrants up to 10 years in Israel and 70% were veteran Israelis.
"The requests for assistance fall into several main categories" explains Topaz. "Expanding the business, assistance in procuring funding and professional consulting services in finance, marketing and business management. Last year there was a noted increase in the number of businesses who needed assistance to sustain them through the recession. Our job is to help businesses assess the situation, using professional consultants and businesses mentors, and help procure loans for growing businesses. 20% of respondents noted that they had participated in business courses in the past. Most applicants noted that they were highly satisfied with the services they received from the Economic Development Unit. EDU services are subsidized up to 75% by various government ministries and the Jewish Agency for Israel.
Iyar 5762 - May 2002