from the November 2011 issue

Small can be beautiful

Observers of Israel's economy have criticized it as not being capable of nurturing large mega type companies. Senor and Singer whose book the Startup Nation has been widely acclaimed mention this. However, first of all this is not true. Among Israel's mega concerns we have Iscar, CheckPoint, Teva Pharmaceuticals, Converse and Amdocs, among others. However, the relationship between large an medium sized companies exists and is worth studying.

Probably the most startling fact is that Israel does not possess a pool skilled management. The fact is that managers try to achieve quick success even though it is at a price lower than what they could get for a larger company.Israelis value commercial success and everyone knows the names of Steff Wertheim, Gil Schwed and Eli Hurwitz. We would think that is just as difficult to create three successful companies as one large one.

There is also the question of historical background. Swiss watches are known world wide as are Belgium chocolates. There are many Israeli computer based companies. This is the case due to the experience that Israelis get in the elite intelligence army units. We find the criticism unwarranted. It is like saying why don't the authors produce best sellers. We for one, wish success to startups whose business is very aimed at small niche markets.

Reprinted from the Israel High-Tech & Investment Report November 2011

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