The government has failed to protect businesses from harm and help them bounce back since the Israel-Hamas War began, including granting comprehensive and appropriate compensations, State Comptroller Matanyahu Englman announced in a new domestic report published on Tuesday.

In October 2023, 765,000 employees were out of a job – about 18% of the workforce. In November, this dropped to 400,000 (9%), and then to 285,000 (7%) in December. Those affected the most were independent business owners.

“Independent businesses play a major role in the financial development of states, due to their dynamic, unique, and malleable nature,” he said. In 2022, there were 610,000 small businesses. Of Israeli businesses, 97% were small businesses in 2022. Of the workforce, 49% were either independent or worked in small businesses.

In October 2023, over 50% of incomes were struck for a majority of small businesses. The 83% who went to serve in military reserves said either their or their partners’ income had been damaged due to the war. Just last month, 10,000 compensation requests were registered.

“Time is a critical factor for the residents and their businesses,” he added, calling on Prime Minister Benjamin Netanyahu and Finance Minister Bezalel Smotrich to advance a support plan as soon as possible.

STATE COMPTROLLER Matanyahu Englman condemned the assignment of female cadets in the IDF officers’ course to guard terrorists who committed violent acts of sexual assault and murder on October 7, the writer notes. (credit: OLIVIER FITOUSSI/FLASH90)
STATE COMPTROLLER Matanyahu Englman condemned the assignment of female cadets in the IDF officers’ course to guard terrorists who committed violent acts of sexual assault and murder on October 7, the writer notes. (credit: OLIVIER FITOUSSI/FLASH90)

Emergency plan for small businesses not prepared before Oct. 7

The comptroller found that a security emergency plan for small businesses was not prepared even before the Israel-Hamas War.

A plan was approved November 2023, but, the report noted, this could have been coordinated sooner and saved unnecessary financial strains.

The State Comptroller recommended closer tracking of the compensation and rehabilitation plans for small businesses, as well as setting a governmental standard for the sizes of businesses, and matching obligations and rights based on those metrics. The latter lack, said the comptroller, is what is holding up comprehensive data compilation on what businesses need.

The publication is the third of its kind to examine the domestic ramifications of the October 7 massacre and the ensuing war. Covering more than 60 topics, the State Comptroller’s Office works by three guiding principles: first, equal criticism toward all leadership levels (diplomatic, domestic, and military); second, personal responsibility to individuals who were in charge; third, assuming that a State Commission of Inquiry is established, the comptroller will outline and divide the investigations with it.

The reports come as the State Comptroller’s Office has clashed with the IDF Prosecution over materials it says it needs for a thorough review. The IDF has said that the comptroller’s authority doesn’t extend that far, while Englman has insisted that, sans a State COI, the more comprehensive investigation by him is necessary.

“Obviously, the public has a right to answers to the very tough questions that October 7, the worst disaster in Israel since its creation, raised. The State Comptroller will not rest until these answers are delivered, accounting for the failures on the governmental and military levels,” said the office.

No public advancements on a State COI have been recorded. One year and nine months after the massacre, hostage and bereaved families, victims, and the general public await answers.