Burgeoning business: More than 17,000 new companies were registered in Israel during 2000 - TheStreet

The entrepreneurial spirit began the millennium alive and well in Israel, according to

Orot Adumim

, the database run by Business Data Israel.

Israelis registered 17,570 new companies during 2000, a five-year record, says BDI - a member of the global Coface group. That compares with 15,948 in 1999 and 14,639 in 1998. Th Coface group specializes in providing business, financial and marketing data.

BDI CEO Eyal Yanai said that considering past experience, it takes two years for such an entrepreneurial outburst to be really felt in the economy. Therefore, the burst of entreprenrurial spirit will not be felt in 2001.

Yanai points out that the share of hi-tech companies among the new enterprises was relatively high in 2000. But most fledgling hi-tech firms don't make it. They collapse within the first two years.

In recent years, some 35,000 companies and new businesses (not registered as companies) have been added each year. Of those, Yanai says, 30,000 fold, so effective net growth comes to around 1.5%.

The data indicates that, in addition to the new companies, some 17,000 small businesses were opened during 2000 that did not register as formal companies limited by shares.

The data further indicates that some 340,000 companies and businesses are active in Israel, and that 98.5% of them have turnover of less than $5 million. Close to 80% of active businesses employ three workers or less, and only about 3% (some 10,000) employ over 50 workers. It transpires there is no correlation between a company's size and its success.

Year

No. of newly
opened companies

1996

17,089

1997

15,090

1998

14,639

1999

15,948

2000

17,750

BDI's

Orot Adumim

database tracks the condition of all companies and businesses in Israel in real time, using such parameters as bounced checks, lawsuits and late payments.