Title: COVID-19 AND SMALL BUSINESSES PERFORMANCE AND INNOVATION

Biography:

Dr. Harel is a Senior lecturer at Peres Academic Center. His research focused on Entrepreneurship, Innovation and Small businesses. Dr. Harel serves as a member of board of directors at some leading public Israeli corporations, and bringing with him over two decades of versatile management and business experience as a CEO of several companies in Israel, building and implementing new strategic plans and successfully managing their exit strategy. Dr. Harel holds B.A. in Economics (Cum Laude), M.B.A. (Finance) and M.A. in Philosophy (Cum Laude) from Tel Aviv University, and Ph.D. from Ben-Gurion University in Israel.

Abstract

This study looked at the impact of the COVID-19 pandemic on the revenues of small businesses operating in industrial sectors, and at the extent to which these businesses changed or adjusted their business activity, or changed the extent to which they utilize open innovation tools and implement innovation promotion processes. The findings show that, despite COVID-19's far-reaching impact in all areas of life, the revenues of most small businesses in industrial sectors were not adversely affected, and most of them did not adjust their business activities or the extent to which they employ open innovation tools and engage in innovation promotion processes. The findings also indicate that small businesses, most of whose revenues derive from subcontracting work are likely to cope better under conditions of economic uncertainty. The findings also show that businesses that are active in international markets succeeded in adapting their activity to the changing demands and various trade restrictions. This study's contribution lies in its focus on small businesses, and its examination of how subcontracting strategy and international operations help them contend with problems and conditions of economic uncertainty and suggest that policymakers should foster programs that assist small businesses with these work strategies.