1. Policy

Establishing an enabling legal and regulatory environment for entrepreneurship

Challenges

  1. No Regulatory framework to supporting startups in Palestine
  2. No incentives for newly established businesses like tax deductions and others
  3. Cost of establishing a new business is relatively high
  4. No law to support the establishment of social enterprises in Palestine
  5. Lack of focus and funding on R&D institutions
  6. The available research and development institutions aren’t fully utilized
  7. Palestinian taxes do not distinguish between large and small companies, which make them costly for small companies in general. According to the World Bank, Palestine ranked 112 out of 190 in respect of tax laws
  8. The legislative system is still missing laws to protect intellectual property rights and patents
  9. Weak coordination and dialogue between the relevant parties, resulting in fragmented efforts and limited knowledge in the sector
  10. Absence of research institutions and information
  11. Absence of a comprehensive national strategy for the entrepreneurship sector, which is reflected in fragmented efforts and the inability to orient efforts towards national priorities.
  12. The Palestinian government confronting severe financial crises, which is reflected in low appropriations for the entrepreneurship sector interventions and limited financial and non- financial incentives needed to stimulate the sector.

On-going Interventions

  1. Ministry of Entrepreneurship and Empowerment is drafting a new law to support startups in Palestine
  2. The Ministry of Entrepreneurship is developing a new system to regulate and coordinate the works of ESOs in Palestine

Required Interventions

  1. 1 Develop a regulatory framework to support startups in Palestine, including provisions for licensing, registration, and compliance.
  2. Create incentives for newly established businesses, such as tax deductions and access to financing.
  3. Reduce the cost of establishing a new business by streamlining bureaucratic procedures, offering financial support, and promoting entrepreneurship education and training.
  4. Draft laws to support the establishment and growth of social enterprises in Palestine.
  5. Increase funding and focus on research and development institutions, including universities, laboratories, and innovation centers.
  6. Foster collaboration and knowledge sharing between research and development institutions and the private sector.
  7. Revise the tax system to differentiate between small and large companies and to reduce the tax burden on small companies.
  8. Develop laws to protect intellectual property rights and patents and establish mechanisms for enforcing these laws.
  9. Enhance coordination and dialogue among relevant parties, including government agencies, private sector organizations, civil society groups, and academia.
  10. Establish research institutions and collect and disseminate data on the entrepreneurship ecosystem in Palestine.
  11. Develop a comprehensive national strategy for the entrepreneurship sector that aligns with national priorities and engages stakeholders at all levels.
  12. Allocate sufficient financial and non-financial resources to the entrepreneurship sector, including support for business incubators, accelerators, and other entrepreneurial support organizations.

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