Spatial Variations in the Israeli Small-Business Sector: Implications for Regional Development Policies

Razin E. (1990) Spatial variations in the Israeli small-business sector: Implications for regional development policies, Reg. Studies 24, 149-162. An analysis of evolving spatial variations in self-employment in Israel is presented as an initial step in assessing opportunities for small-business oriented local development policies. The analysis includes the Jewish urban population and is based on data ofthe 1961, 1972 and 1983 censuses ofpopulation. Whereas the gap between metropolitan areas and non-metropolitan development towns in rates of self-employment narrowed substantially with time, differences in the industrial composition widened. Small-business opportunities in development towns were relatively few and mainly concentrated in non-growing blue-collar activities. Those in manufacturing and in business services were restricted by non-central location, whereas those in retail and construction were restricted by small size of local market, and limited local purchasing power. High levels of well-being and a large tourism sector were correlated positively with rates of self-employment in development towns, whereas size of the manufacturing sector influenced self-employment negatively. Self-employment in retail, construction and manufacturing did serve as an alternative mobility route in development towns which offered inferior opportunities for employees.