Role of small businesses in the economic development of the Gaza Strip in Palestine

Abstract

Approximately 80% of the wealth of the world is believed to be possessed by 5-10% of its population. It stands to reason, therefore, that many more people who may want to start big businesses are not able to because they may not have the money. Small business start-ups have become the panacea for the correction of economic ills that countries have. These small business start-ups account for up to 67% of job creation in the economy annually, suggesting that they have a role to play in a country. The limitations of these start-ups are largely to do with financing, lack of experience by the owners and specifically, fewer people are brave enough to start a business. The Gaza Strip has a history of doing businesses and for centuries, its people have been involved in business. The political turmoil in the Strip has created more problems to the growth of the occupied territory, and the decline in the levels of employment has exacerbated the levels of chronic poverty. The standoff with Israel has resulted in many other supplies from outside not getting to the Palestinian people. This research sought to identify the role that small businesses can play in the up-liftmen of the Palestinian people economically and socially. Interviews were conducted amongst the existing businesses with special reference to the viability of their businesses, the number of people they employ and the prospects of future businesses. The findings indicate that the future for Palestine remains in the hands of the economy which is facilitated by small businesses that employ thousands of people and provide the livelihood denied many people in and around the Gaza Strip.