From theory to practice of formal and informal Palestinian small businesses

Abstract

This chapter aims to address the characteristics, strengths, and weaknesses of Palestinian formal and informal small businesses, thus linking the theoretical to the practical perspective of these business categories in addition to prescribing the needed policies to foster these businesses. It combines a literature review with a mixed-methods study. A sample of 300 formal and informal small businesses was surveyed; in-depth interviews with representatives from government, private sector, banks, and microfinance institutions were conducted. The results describe a mixed profile of theoretical and ad-hoc practical behaviors, both in terms of strengths and weaknesses and in relation to aspects such as employment, income generation, labor skills, technology affordability, gender, information, market and finance accessibility, expertise, and infrastructure.