The survey conducted by Israel's Central Bureau of Statistics indicates that approximately 51 percent of businesses in Israel experienced a severe loss in revenue, with more than 50 percent of their income impacted due to the conflict between Israel and Hamas.
The main factors contributing to this revenue decline include reduced demand for products and services, employee absenteeism, security restrictions, school closures, and supply chain disruptions. Small businesses were disproportionately affected, with around 57 percent of those employing five to ten workers reporting severe losses compared to only 14 percent of larger businesses with over 250 employees. Sectors like construction and food and beverage were particularly hard-hit, with over 70 percent reporting severe revenue loss.
The survey also highlighted the impact on employee attendance, as 37 percent of businesses reported over 80 percent of employees not attending work, leading to a complete cessation of business activity. In the construction sector, more than 62 percent of businesses faced temporary or near closures, whereas this figure was only four percent in the hi-tech and financial services sectors.
Additionally, 42 percent of small businesses expressed concern about the risk of shutting down due to worker absenteeism, compared to approximately 15 percent of larger businesses.
(With Agency Inputs)
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