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Israel: Israeli small businesses struggle with uncertainty amid protracted conflict

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Israeli small businesses have been struggling with uncertainty following the country's latest conflict with Iran. On the surface, Tel Aviv seems to be back to its usual bustling pace, with streets full of life, stores open, and coffee shops serving espresso -- much as they did even after Hamas launched its unprecedented attack on southern Israel on October 7, 2023, and during the prolonged military operation in Gaza that followed. But this time, following the recent conflict with Iran, the atmosphere feels different. Industry analysts noted that, in addition to coffee shops, other small businesses have also faced significant financial pressure, as they must cover running costs such as rent and wages despite a sharp decline in consumer spending. Litvak explained that, when it comes to government funding, priority will be given to relocating people whose homes have been damaged or destroyed, rebuilding those homes, and increasing the defense budget. He pointed out that small businesses will have to wait a relatively long time to receive assistance, which could add to the economic hardships already facing these struggling businesses. In a region marked by uncertainty, long-term plans have become a luxury few can afford. Small business operators like Kiki Nitzan say they try to focus on the present and set aside worries about what lies ahead. Shotlist: Tel Aviv, Israel - July 4, 2025: 1. Various of consumers, baristas in coffee shop; 2. SOUDNBITE (English) Kiki Nitzan, coffee shop owner (partially overlaid with shot 3): "The last two weeks were very difficult, even more difficult than the 7th of October. It was very dangerous in Tel Aviv, so the city was empty, so it was very, very hard."; [SHOT OVERLAYING SOUNDBITE] 3. Various of coffee shop sign; consumers in coffee shop; [SHOT OVERLAYING SOUNDBITE] 4. Various of coffee shop sign; coffee shop worker making food; baked goods on display; 5. SOUDNBITE (English) Dror Litvak, country manager, ManpowerGroup Israel (starting with shot 4/partially overlaid with shot 6): "In our survey, we can see that the very small businesses -- we're talking about businesses that are employing 50 employees or less -- we can see that they are decreasing their prediction, and they are not going to recruit new employees to their businesses because of this uncertainty."; [SHOT OVERLAYING SOUNDBITE] 6. Various of consumers, baristas in coffee shop; [SHOT OVERLAYING SOUNDBITE] 7. Various of coffee shop sign; consumers; coffee mugs; 8. SOUDNBITE (English) Dror Litvak, country manager, ManpowerGroup Israel (starting with shot 7/partially overlaid with shot 9): "It takes months and months till actually the Ministry of Treasury transfers money to small businesses. At this time, those small businesses don't have credit. They lose clients, they don't have income in this period, and they need to pay salaries to their employees. So, first of all, if the grants come, they come too late."; Tel Aviv, Israel - June 17, 2025 [SHOT OVERLAYING SOUNDBITE] 9. Various of damaged buildings; [SHOT OVERLAYING SOUNDBITE] 10. Various of damaged buildings; national flag of Israel; Tel Aviv, Israel - July 4, 2025 11. SOUDNBITE (English) Kiki Nitzan, coffee shop owner (starting with shot 10/ending with shot 12): "We cannot know what's happening next week or in a few months, if [there will be] another war or something like that. So the idea is not to make a plan for the long time, and to live in the moment for now."; 12. Consumers in coffee shop; 13. Various of street view, pedestrians. [Restriction - No access Chinese mainland]

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