Comments on: The Joy/Nightmare of Self-Employment in Israel http://illuminea.com/israel/the-joynightmare-of-self-employment-in-israel/ Create and optimize your web presence with blogging & social media strategies Thu, 19 Jan 2012 11:40:45 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: New Initiative: Entrepreneur Breakfast » illuminea blog http://illuminea.com/israel/the-joynightmare-of-self-employment-in-israel/comment-page-1/#comment-11 New Initiative: Entrepreneur Breakfast » illuminea blog Wed, 02 May 2007 13:18:19 +0000 http://illuminea.com/blog/small-business/the-joynightmare-of-self-employment-in-israel/#comment-11 [...] For a while I had thought about setting up some kind of forum where entrepreneurs can meet and give each other advice and discuss how they have solved issues or overcome difficulties, and support each other in our decisions to leave the security of employment. Small businesses are in important part of Israel’s economy, and statistics indicate that small businesses account for something like 90% of employment in Israel (if I remember correctly). Therefore, it is important not just on a personal level, but also on a national level, that we help each other…well…survive. (See my previous post on the difficulties of self-employment in Israel to see what I’m talking about.) [...] [...] For a while I had thought about setting up some kind of forum where entrepreneurs can meet and give each other advice and discuss how they have solved issues or overcome difficulties, and support each other in our decisions to leave the security of employment. Small businesses are in important part of Israel’s economy, and statistics indicate that small businesses account for something like 90% of employment in Israel (if I remember correctly). Therefore, it is important not just on a personal level, but also on a national level, that we help each other…well…survive. (See my previous post on the difficulties of self-employment in Israel to see what I’m talking about.) [...]

]]> By: Miriam Schwab http://illuminea.com/israel/the-joynightmare-of-self-employment-in-israel/comment-page-1/#comment-10 Miriam Schwab Fri, 27 Apr 2007 05:45:26 +0000 http://illuminea.com/blog/small-business/the-joynightmare-of-self-employment-in-israel/#comment-10 Hi Jill, Unfortunately, I don't believe that much has changed since I wrote my post. On the one hand, a lot of people are tired of being stifled as employees and dream of self-employment. Even those that are in well-paying jobs in the hi-tech sector want to get out because they get paid well, but work like slaves. On the other hand, I think that many are afraid to take the plunge into self-employment because of the uncertainties, and because the State of Israel does not make it easy for you to succeed. Not only do they wrongly accuse people of not paying taxes, but they put you into a situation that makes it very difficult to pay taxes. For example, my business recently experienced a jump in sales, and as a result the government kindly increased my national insurance payments by 700%. This type of taxation places small businesses in a cycle that it's hard to emerge from: more business=the need to hire more manpower=more expenses+ridiculous taxes. There <em>are</em> hi-tech companies in Israel that depend on contractors for a large amount of their manpower. I recently stopped working as a contractor at one such company. But if you had such a difficult time finding a contractor, it's possible that this country's high-quality workers prefer the security of employment, or are in high demand due to the shortage of good contractors. Hi Jill,

Unfortunately, I don’t believe that much has changed since I wrote my post. On the one hand, a lot of people are tired of being stifled as employees and dream of self-employment. Even those that are in well-paying jobs in the hi-tech sector want to get out because they get paid well, but work like slaves.

On the other hand, I think that many are afraid to take the plunge into self-employment because of the uncertainties, and because the State of Israel does not make it easy for you to succeed. Not only do they wrongly accuse people of not paying taxes, but they put you into a situation that makes it very difficult to pay taxes. For example, my business recently experienced a jump in sales, and as a result the government kindly increased my national insurance payments by 700%. This type of taxation places small businesses in a cycle that it’s hard to emerge from: more business=the need to hire more manpower=more expenses+ridiculous taxes.

There are hi-tech companies in Israel that depend on contractors for a large amount of their manpower. I recently stopped working as a contractor at one such company. But if you had such a difficult time finding a contractor, it’s possible that this country’s high-quality workers prefer the security of employment, or are in high demand due to the shortage of good contractors.

]]> By: Jill Holdaway http://illuminea.com/israel/the-joynightmare-of-self-employment-in-israel/comment-page-1/#comment-9 Jill Holdaway Fri, 27 Apr 2007 01:25:38 +0000 http://illuminea.com/blog/small-business/the-joynightmare-of-self-employment-in-israel/#comment-9 While visiting my company's office in Israel, I tried to hire a contractor and found it very difficult. The one person I did find ended declining for a staff job. Now that you descirbe the tax problems, I better understand why it's so difficult. I see that your post is from last year. Do you think anything has changed since then? While visiting my company’s office in Israel, I tried to hire a contractor and found it very difficult. The one person I did find ended declining for a staff job. Now that you descirbe the tax problems, I better understand why it’s so difficult. I see that your post is from last year. Do you think anything has changed since then?

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