Comparison of very small businesses of Arabs and Jews in the North Israel periphery

Very small businesses owned by Arabs and Jews in the north of Israel are compared and discussed along several dimensions: education and experience of the entrepreneurs, field and location of businesses, business success, formal and informal support of businesses, and strengths and weaknesses of the businesses. The main finding of the study is the contrasting tendencies of small businesses in the Arab and Jewish sectors: The majority ofArab entrepreneurs reported a decrease in profit while most Jews pointed to a profit increase. We relate this to differences in the structure of the business fields that in turn depend on targeted market segments and product characteristics.