Pardon, am I a small business?

Micro: 5 employees 1 million NIS

Small20

employees10 million

NIS

Medium:100

employees100 million

NIS

are Small &

Medium Businessess

Businesses Difficulties, By Number of Employees

Barriers to business successOne

empl.

2-4

empl.

5-19

empl.

20-49

empl.

50-100

empl.

Competition8%20%21%29%15%

Bureaucratic load10%9%18%16%5%

Credit and financing 11%11%13%12%20%

Recession and general

atmosphere 14%6%7%14%5%

Professional recruitment 10%7%7%8%20%

Marketing14%14%2%2%0%

Demand11%6%7%4%10%

Low incomes vs. fixed

expenditures6%8%7%2%15%

Customers & suppliers credit7%6%7%8%0%

Knowledge, management &

infrastructures3%3%6%4%5%

Physical / Personal status4%3%2%0%0%

Motivation0%5%1%0%5%Status survey data, the Agency for Small and Medium Enterprises, 2013

CONSULTING – TOOLS DEVELOPMENT

Identifying needs

Target Audience

Compliance

Control & Assessment

Counseling Plan

Consulting in variety of subjects

Diagnosis and adjustment ofconsulting package

over 700 consultants all overthe country

Regular route: 30-80 hours;

Strategic route: 150-300 hours.

micro businesses consulting

Courses, Workshops, Trainings

Guidance up to funding

Businesses Center

Entrepreneurship

“IDF’s move to the Negev” project

Detection of financing Market Failure in small

and medium businesses

Support programs for the promotion and

improvement of credit accessibility

Control & Assessment

Finance Department

State Guaranty Fund

4.25 billion NIS

70% State Guaranty Fund to existing businesses,85% State Guaranty Fund to new businesses

Participating banks: Hapoalim, Mizrahi-Tfahot, Mercantile Discount, Otsar Hayal

Competition between the banks and the operators

SME Export Marketing Fund Target

Audience

Small exporter: up to 7 million NIS in volume of exports

Medium exporter: between 7-40 million NIS in volume of

exports

Fund GoalsParticipating in marketing expenditure including:

advertising, conventions & exhibitions, patent registration,

etc.

Participation

Rate

Up to 50% of the marketing expenditure and up to 2 million

NIS

RoyaltiesSmall exporter: none; Medium exporter: 3% the exports

growth

One year with another as One year with an option for

another year and subject to compliance with conditions

Approximately 70 firms receive support under this route with a budget of

about 25 million NIS

Industrial Design

• Atir Israel Industrial Design Award - Encouragingexcellence among industrial designers andpromoting the use of industrial performance

• Development program for enriched-designedproducts - a new program to encourage the use ofindustrial design in the industry. The fund willprovide up to 200 NIS of the total expenditure foruse of industrial design

- Around 12 firms receive support under this fund (total of 2 million NIS)

• Participating in conventions…

• New Media – wide and versatile industry with numerous

sectors. Almost all sectors demonstrate significant growth rate

in recent years and their high project potential is even more

impressive.

• New Media – can constitute a source for employment, positive

external influences and mainly significant growth engine for

different worldwide countries, with an emphasis on those

countries, like Israel, whose comparative advantage is not in

manufacturing.

• Many countries have begun in recent years to operate

programs for promoting and developing this domain, either as

part of broader programs promoting technology and innovation,

and either in the field of new media and digital, in particular.

New Media

Reasons for Operating the Program in Israel

• Creativity

• Innovation

• Developed infrastructures

• Proven ability in establishing and leveraging startups

• Relatively low investment in the development phase

Government Intervention?

• Is it right to give a sectorial preference?

• Is it right to make a geographical preference?

• Is there indeed a "market failure"?

• Not to harm competition in the private sector

• We do not take ownership in firms

• Inability to predict what will succeed and what not

• The presence of academic institutions such as The

Technion (one the world's leading technological institutions)

and the University of Haifa - both have a strong affinity to

media.

• The presence of global development centers of hi-tech

multi-national firms, such as Intel, IBM, Yahoo and

Microsoft, which could constitute an anchor and a basis for

becoming partners in activities related to the media realm.

• An internationally accredited film festival held for many

years in Haifa, where industrial-related events held in

relation to the festival.

Why Haifa?

• New Media

Digital distribution of content including text, image, sound or their

combination or their partial combination, to the target audience. The

distribution is performed by relevant technological means.

• The Project Period

The period approved by the Commission of Application Execution?,

but not more than 12 months from the date that the Commission set.

• Project

Funding application for activities within the plan, which will specify the

essence of the project, target market, milestones and required

expenditures to operate the project.

New Media Fund

• Prerequisite – Size of Business

The business entity employs up to 100 employees.

The business entity annual turnover in the year preceding the application

does not exceed 100 million NIS.

• Television

At least 15% of the filming days will take place in Haifa and at least 15% of

the budget sum - for services in Haifa.

• Cinema

The project is in engaged in promoting feature film.

External production investors at the extent of at least 50% of the

production budget.

At least 15% of the filming days will take in Haifa and at least 20% of the

used budget sum – for services from Haifa.

• New MediaThe development process will take place in Haifa.

New Media Fund

Criteria to Examine the Application

• Project Quality

The Commission is convinced that the project submitted by the

business entity is innovative.

• Economic ability and business potential

A business entity with the highest economic and business potential.

• International Markets

A project designated to address relevant international markets.

• Expected Employment Increase

The highest expected employment increase rate.

New Media Fund

• New Media Hiring an industrial or a graphic designer, cost of programmer, cost of

professional consultant and an external expert (provided that he is not a partner

to the project).

Standardization and patents expenditure, domestic and overseas (will not

exceed 10% of the approved project).

• Feature film and TV series Actors and extras; technical crew (audio recording professional, photographer,

makeup artist etc.).

Photography equipment rental, lighting and grip; sound equipment rental;

production and insurance; art; cost of raw materials; transaport services; etc.

Domestic and overseas marketing and sales promotions – up to 10% of the

volume of the project.

• Support Rates New Media – up to 75% of the project and up to a total of 250,000 NIS per

project.

Cinema and TV production – up to one third of the project and up to a total of

600,000 NIS per project.

New Media Fund

Projects Supported under the Support of Digital Media Industries (Haifa Pilot)

Name of ProjectFirms

Chet UpTiltan College of Design

BuckKfir Gal – Web Interactive Games

Wounded CountryCome Back Films

Philip and GombyTiltan College of Design

Over the HillTranpax Film Production

3 sistersBilsan Film Production

Space barKastina Communications

At Li Layla Tuttim Productions

On our Future Eithan Mantzuri

PaxDassa James

Monkey See Monkey DoSmartones

Total: 4 New Media projects, 2 TV series, 5 feature films