Showing posts with label business. Show all posts
Showing posts with label business. Show all posts
Monday, November 26, 2018
Wednesday, October 24, 2018
Sunday, September 3, 2017
Business Arnona
Lior Regev
Arnona (municipal tax) is the main source of regular income for Israel’s local authorities, including the Jerusalem Municipality. Residential Arnona, however, does not typically cover the cost of the municipal services provided to residents. The rate for non-residential properties differs from the rate for residential homes. For this reason, local authorities compete for Arnona from businesses: businesses pay more and use relatively few municipal services.
Which part of the city generates the most Arnona for the Municipality of Jerusalem?
The amount generated depends on the types and sizes of properties in each part of the city. For example, places of religious worship pay the low rate of NIS 63 per square meter, while offices and commercial businesses larger than 150 square meters pay the high rate of NIS 334 per square meter. Because the amount due is determined by square meters, the larger the property, the higher the Arnona. In some cases, the rate is further affected by the size of the property: if it is beyond a certain threshold, the cost per meter rises. And in some cases, the location can also affect the rate.
By cross-referencing the number of properties and the Arnona revenues they generated in 2016, we can identify several phenomena. The revenues from the Mahane Yehuda market and Malha mall areas are comparable, at NIS 25 and 28 million, respectively, before discounts. Yet the number of non-residential properties in the Mahane Yehuda area stands at 1,600, compared with only 300 in the Malha mall area – a five-fold difference (!). The reason apparently lies in the large number of small businesses in the market area, in contrast to the mix of businesses in the mall, which has many regional or national commercial franchises.
Moreover, the rumors about the death of the City Center evidently overstated the situation. About 1,670 businesses operate in the triangle formed by the Ben-Yehuda Street, Jaffa Road, and King George Street, generating some NIS 44 million for the city, before discounts.
The largest Arnona-generating areas are the industrial and commercial zones of Talpiot and Giv’at Sha’ul. In recent years the mix of properties in both zones has been continuously diversifying. Today they house auto-repair shops, stores and places of commerce, business offices, some remaining traditional industries, and the beginnings of knowledge-intensive industries. Interestingly, the number of non-residential properties in Talpiot is larger than the number in Giv’at Sha’ul by nearly 1,000 (2,518 compared with 1,548), yet the difference in income generated amounts to only NIS 7 million (105 compared with 98 million, before discounts).
Translation: Merav Datan
Arnona (municipal tax) is the main source of regular income for Israel’s local authorities, including the Jerusalem Municipality. Residential Arnona, however, does not typically cover the cost of the municipal services provided to residents. The rate for non-residential properties differs from the rate for residential homes. For this reason, local authorities compete for Arnona from businesses: businesses pay more and use relatively few municipal services.
Which part of the city generates the most Arnona for the Municipality of Jerusalem?
The amount generated depends on the types and sizes of properties in each part of the city. For example, places of religious worship pay the low rate of NIS 63 per square meter, while offices and commercial businesses larger than 150 square meters pay the high rate of NIS 334 per square meter. Because the amount due is determined by square meters, the larger the property, the higher the Arnona. In some cases, the rate is further affected by the size of the property: if it is beyond a certain threshold, the cost per meter rises. And in some cases, the location can also affect the rate.
By cross-referencing the number of properties and the Arnona revenues they generated in 2016, we can identify several phenomena. The revenues from the Mahane Yehuda market and Malha mall areas are comparable, at NIS 25 and 28 million, respectively, before discounts. Yet the number of non-residential properties in the Mahane Yehuda area stands at 1,600, compared with only 300 in the Malha mall area – a five-fold difference (!). The reason apparently lies in the large number of small businesses in the market area, in contrast to the mix of businesses in the mall, which has many regional or national commercial franchises.
Moreover, the rumors about the death of the City Center evidently overstated the situation. About 1,670 businesses operate in the triangle formed by the Ben-Yehuda Street, Jaffa Road, and King George Street, generating some NIS 44 million for the city, before discounts.
The largest Arnona-generating areas are the industrial and commercial zones of Talpiot and Giv’at Sha’ul. In recent years the mix of properties in both zones has been continuously diversifying. Today they house auto-repair shops, stores and places of commerce, business offices, some remaining traditional industries, and the beginnings of knowledge-intensive industries. Interestingly, the number of non-residential properties in Talpiot is larger than the number in Giv’at Sha’ul by nearly 1,000 (2,518 compared with 1,548), yet the difference in income generated amounts to only NIS 7 million (105 compared with 98 million, before discounts).
Translation: Merav Datan
Monday, February 20, 2017
The True Stats of Doing Business
Alon Kupererd
Jerusalem Institute for Policy Research, en.jerusaleminstitute.org.il
If one examines the available data on openings and closings of businesses, while ignoring the net change in the number of businesses, one might conclude that the business sector is constantly in flux – given the large numbers of openings and closings.
Indeed, the data on business registrations, as provided by the Central Bureau of Statistics and presented in the 2017 Statistical Yearbook on Jerusalem (forthcoming), indicate that in all economic sectors, with the sole exception of the manufacturing, mining, and quarrying sector, there has been a gradual increase in the number of active businesses during 2015. For example, during this year Jerusalem saw the opening of 242 new businesses in the real estate sector while 137 were shut down, indicating a positive net change of 105 businesses for this sector. This is smaller than the figure for Tel Aviv-Yafo, which saw an increase of 212 businesses in the real estate sector during the same year. In Haifa there were 146 business openings and 88 closings, yielding a net change of 58 new businesses – well below the figures for Jerusalem or Tel Aviv.
The important question, however, is whether this net change is a true reflection of activity trends in the business sector. Not necessarily, as it turns out, given that the absolute numbers do not accurately represent the proportionate change in the number of businesses in a city, and given that the economy of a city varies with the size of the city. As such, any comparison across cities requires an index of measurement that neutralizes variance in the number of active businesses per city. So let us compare business activity across cities using ratios per 1,000 businesses.
When we examine the above data using this method, we find that Jerusalem saw an increase of 44 businesses for every 1,000 active businesses, while Tel Aviv had an increase of 33 businesses per 1,000. In Haifa the proportion was 40 businesses per 1,000. Thus we see that even though Tel Aviv saw the greatest increase in this sector in absolute numbers, its rate of growth was the lowest among the three major cities, including Haifa, which had the lowest figure in absolute numbers.
In addition to the rate of growth, we can also examine stability. To see which sectors maintained relative stability and which underwent high turnover, let us calculate the rate of change among businesses (sum of business openings and closings) per 1,000 active businesses.
When we compare across sectors, we find that among the three major cities and Israel as a whole, the sector with the highest rate of business openings and closings was that of accommodation services and restaurants (287 openings and closings per 1,000 active businesses in Jerusalem, 260 in Tel Aviv, and 315 in Haifa).
The sectors with the next highest rates of openings and closings were the hi-tech industry (257 in Tel Aviv, 229 in Israel, 220 in Jerusalem, and 212 in Haifa) and information and communications (232 in Tel Aviv, 228 in Israel, 226 in Jerusalem, and 225 in Haifa).
It should be noted that those sectors that showed high rates of business openings and closings also had relatively high rates of growth in terms of the number of businesses per 1,000 active businesses: in Jerusalem the hi-tech industry ranked second and the information and communications sector ranked fourth; in Tel Aviv the hi-tech industry ranked first and the information and communications sector ranked second.
Translation: Merav Datan
Jerusalem Institute for Policy Research, en.jerusaleminstitute.org.il
If one examines the available data on openings and closings of businesses, while ignoring the net change in the number of businesses, one might conclude that the business sector is constantly in flux – given the large numbers of openings and closings.
Indeed, the data on business registrations, as provided by the Central Bureau of Statistics and presented in the 2017 Statistical Yearbook on Jerusalem (forthcoming), indicate that in all economic sectors, with the sole exception of the manufacturing, mining, and quarrying sector, there has been a gradual increase in the number of active businesses during 2015. For example, during this year Jerusalem saw the opening of 242 new businesses in the real estate sector while 137 were shut down, indicating a positive net change of 105 businesses for this sector. This is smaller than the figure for Tel Aviv-Yafo, which saw an increase of 212 businesses in the real estate sector during the same year. In Haifa there were 146 business openings and 88 closings, yielding a net change of 58 new businesses – well below the figures for Jerusalem or Tel Aviv.
The important question, however, is whether this net change is a true reflection of activity trends in the business sector. Not necessarily, as it turns out, given that the absolute numbers do not accurately represent the proportionate change in the number of businesses in a city, and given that the economy of a city varies with the size of the city. As such, any comparison across cities requires an index of measurement that neutralizes variance in the number of active businesses per city. So let us compare business activity across cities using ratios per 1,000 businesses.
When we examine the above data using this method, we find that Jerusalem saw an increase of 44 businesses for every 1,000 active businesses, while Tel Aviv had an increase of 33 businesses per 1,000. In Haifa the proportion was 40 businesses per 1,000. Thus we see that even though Tel Aviv saw the greatest increase in this sector in absolute numbers, its rate of growth was the lowest among the three major cities, including Haifa, which had the lowest figure in absolute numbers.
In addition to the rate of growth, we can also examine stability. To see which sectors maintained relative stability and which underwent high turnover, let us calculate the rate of change among businesses (sum of business openings and closings) per 1,000 active businesses.
When we compare across sectors, we find that among the three major cities and Israel as a whole, the sector with the highest rate of business openings and closings was that of accommodation services and restaurants (287 openings and closings per 1,000 active businesses in Jerusalem, 260 in Tel Aviv, and 315 in Haifa).
The sectors with the next highest rates of openings and closings were the hi-tech industry (257 in Tel Aviv, 229 in Israel, 220 in Jerusalem, and 212 in Haifa) and information and communications (232 in Tel Aviv, 228 in Israel, 226 in Jerusalem, and 225 in Haifa).
It should be noted that those sectors that showed high rates of business openings and closings also had relatively high rates of growth in terms of the number of businesses per 1,000 active businesses: in Jerusalem the hi-tech industry ranked second and the information and communications sector ranked fourth; in Tel Aviv the hi-tech industry ranked first and the information and communications sector ranked second.
Translation: Merav Datan
Wednesday, March 4, 2015
It’s Off to Work We Go
Alon Kupererd
An examination of employment structures in various cities reveals that often a city will specialize in a specific industry or sector, one in which a relatively large percentage of its residents is employed. We can examine these specializations and compare cities using a specialization index.
The specialization index for a city in a specific industry or sector measures the ratio between the percentage of workers in that industry in the city (out of the city’s total number of employees) and the percentage of workers in that sector in the state as a whole. A value higher than 1 indicates relative specialization, that is, the employment weight in this sector is higher than the average for the country.
Analysis of data from the Statistical Yearbook of Jerusalem reveals that the sector in which Jerusalem had the highest specialization index for 2012 was that of community, social, and personal services – 1.51. This figure is lower than the highest value for Tel Aviv – 2.89 in banking, insurance, and financial institutions – or for Haifa – 4.41 in the water and electricity sector. It is markedly evident that in contrast to other major cities, Jerusalem does not have a prominent specialization sector and its employed population is more evenly scattered among various sectors.
An interesting question that arises in this context is whether Jerusalem, as the capital, specializes in the public service sector (which includes public administration, education, healthcare, and welfare and nursing services). The data indicate that indeed Jerusalem’s specialization index in these areas is highest among the major cities, at 1.24, yet it is not high in relation to other specializations and evidently does not constitute a distinct specialization of the city.
One branch of the public service sector is education, where Jerusalem’s specialization index is 1.35, making it the city’s second-highest specialization sector. In contrast, Tel Aviv’s specialization index for education measures 0.54, which is almost the lowest of the city’s indices. In Haifa the percentage of employees in the employment sector is identical to the national average. The variance in Jerusalem within this sector results from the city’s high percentage of schoolchildren and preschoolers.
A review of specialization indices reveals that Jerusalem is not a business or technological epicenter. In the high-tech industry, Jerusalem’s index measures 0.67. This is a low figure in itself, and it is lower than the figure for Tel Aviv – 0.92 – or Haifa, which has the highest figure among the major cities, at 1.35. In the business service and real estate sector, Jerusalem has an index of 0.92, after Haifa – 1.25 – and Tel Aviv – 1.87. Additionally, in the sector of banking, insurance, and financial institutions, Jerusalem has an index of 0.53, while the figure for Haifa is 0.82, and for Tel Aviv, where as noted it is the city’s distinct specialization sector, it is 2.89.
Source of data: 2014 Statistical Yearbook of Jerusalem
Thursday, December 11, 2014
What do you want to be when you grow up?
Yair
Assaf-Shapira
During the 2011-2012 academic year, a total of 37,670 students were enrolled in Jerusalem’s academic institutions, constituting 15% of the total number of students in Israel. Among Jerusalem’s students, 20,580 were enrolled at the Hebrew University, 11,410 were enrolled in academic colleges, and 5,680 were enrolled in colleges of education.
The students’ fields of study varied widely. At the Hebrew University the most popular fields of study were the social sciences (27% of students), humanities (22%), and natural sciences and mathematics (20%). Recently published data from a long-term study by the Central Bureau of Statistics explores the following question, among others: What will students in the various fields do after graduation?
The study surveyed students who had completed their studies in the 2005-06 academic year, using two points in time: 2008 and 2011. An examination of areas of employment (economic sectors) among graduates reveals that two years after graduation, a high percentage of law school graduates (62%) are employed in the business service sector, as are natural sciences and mathematics graduates and engineering and architecture graduates. A high percentage of medical school graduates (72%) are, unsurprisingly, employed in the healthcare, welfare, and nursing services, whereas social sciences and humanities graduates are distributed across several economic sectors. Among humanities graduates the main sectors are education (28% of graduates) and business services (24%). For social sciences graduates the main sectors are business services (29%), and banking, insurance, and finance (18%).
As the years passed, changes in the employment sectors of graduates were observed, and the methodology of the study enables us to examine them. Among 2005-06 humanities and social sciences graduates, the percentage employed in the healthcare, welfare, and nursing sector increased (by 4.4 and 4.7 percentage points, respectively) between 2008 and 2011. Among natural sciences and mathematics graduates as well as engineering and architecture graduates, the percentage employed in the business service sector increased (by 4.2 and 4.8 PPs, respectively) – this already being the main employment sector among these graduates.
Regarding continuing education, 38% of bachelor’s degree recipients went on to pursue a master’s degree, and evidently the field with the highest degree of continuing students is the natural sciences and agriculture (47% of bachelor’s degree recipients continued to study for a master’s degree). The most popular field for the pursuit of a master’s degree was business and management, with 14% of graduates (about 36% of students who went on to pursue a master’s degree) selecting this field.
Translation: Merav Datan
Sources of data:
Monday, March 5, 2012
Business As Usual
An examination of the number of active businesses in a city and their survivability rates over time provides an indication of the strength of the city's business sector. Identifying those sectors of the economy in which businesses have higher survivability rates can also be instructive.
In 2010, approximately 34,700 businesses operated in Jerusalem. This was lower than the 2010 figure for Tel Aviv, where about 64,700 businesses operated, and higher than for Haifa, where about 20,000 businesses operated. The economic sectors with the highest numbers of businesses in Jerusalem were real estate and business services (26%), trade (20%), health, education, and welfare (14%), and transportation and communications (11%). These sectors are more dynamic than others, with a large number of business openings and closings registered annually. During 2010, a total of 912 new businesses opened in the sector of real estate and business services, representing 28% of all new businesses. During the same year, 616 businesses from this sector closed, representing 23% of all the businesses that closed. In the trade sector, 727 new businesses opened (23%) and 656 closed (24%) during this year. In total, more than 3,200 new businesses opened in Jerusalem and about 2,700 closed during 2010. These numbers were lower than the figures for Tel Aviv, where more than 6,300 businesses opened and about 4,450 closed.
What are the chances of survival for a new business? The data indicate that of all the new businesses opened in Israel in 2005, approximately half closed by 2010. A similar trend took place in Jerusalem, where the survivability rate of a new business was 89% in the first year, 75% in the second year, 65% in the third year, 59% in the fourth year, and 52% in the fifth year.
Rates of survivability vary among the different business sectors. Jerusalem businesses in the education and health sector and in the banking and finance sector enjoyed relatively high survivability rates, with 67% surviving past five years. In contrast, the survivability rate of businesses in the hospitality and food services' sector that had opened in 2005 measured only 35% in 2010.
Source: Analysis of Central Bureau of Statistics data
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