Why is the Israeli business climate hostile to small businesses?

Why is the Israeli business climate hostile to small businesses?

• Despite being a leading technology innovator and having a very high number of startups per-capita, how come the business climate in Israel seems to actively discourage small businesses? It's a big hassle to open a corporation, conduct business banking, and get up and running.

• Answer:

  This is actually a consequence of two separate problems in Israel: Israel suffers from inheriting traits both of the British Mandate that existed here prior to 1948 and the Ottoman empire which existed here before that. From the Ottomans we inherited the slow, middle eastern demeanor regarding the meaning of our actions. The average Israeli waves away problems as if they don't have any real consequence. And from the British we inherited the exhausting and complicated bureaucratic system. Put the two together you get an over complex, slow, frustrating and purposefully dumb and inconsiderate system which makes anything, and everything, a royal pain in the ass to achieve. Israel suffers from an oligarchy problem, which actually only recently came to the attention of the average Israeli following the recent social protests. these oligarchs use their political influence to stifle small businesses which attempt to hurt their business. The High tech industry is one of the few Israeli industries where the powerful leaders of the field don't stifle competition, but rather back it and help it grow.