Program to promote Tech Entrepreneurship in the Israeli Arab Community

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The Israeli government's program to promote tech entrepreneurship in the Arab community is a $70 million five-year initiative that focuses on developing the Arab-Israeli ecosystem.
What are the main aims and objectives?

The central goal of the program is to increase the representation and inclusion of Arab-Israelis in the booming tech industry, as they are currently severely underrepresented. Additionally, the program is designed to address the challenges faced by Arab communities, such as geographical distance from tech hubs, lack of access to investors, and a dearth of relevant networking systems. By addressing these issues, the initiative seeks to create an environment that fosters innovation, technology, and entrepreneurship within these communities. The program is part of the larger Takadum plan to allocate $10 billion for Arab communities in various fields.

How does the program work?

The Israeli government's program to promote tech entrepreneurship in the Arab community, a $70 million initiative, works through a series of strategic actions. To begin with, it aims to establish entrepreneurship centers, incubators, accelerators, and an investors' club. These bodies are designed to foster innovation and provide valuable support to Arab entrepreneurs.

The program provides operational grants of up to NIS 2 Million ($630,000) a year in different areas across the country, with an emphasis on the social and geographic periphery. The focus of tehse centers is to create a supportive economic and business environment for local entrepreneurs and encourage innovation. Additionally, Centers that promote employment and training for the tech sector through regional branches will receive additional funding of up to NIS 1 million ($310,000) per year.

The program also provides NIS 6.5 million ($2 million) for an incubator dedicated to companies founded by members of the Arab community. Likewise, NIS 900,000 ($281,000) is available for up to three years to establish clubs of angel investors and individuals with means to provide capital for startup ideas.

What is the overall cost?

The program is supported by a $70 million fund provided by the Israeli Government over a five year period. 

How was it implemented?

The Israeli government's tech entrepreneurship program for the Arab community is led by the ministries of Innovation, Science and Technology and Social Equality together with the Israel Innovation Authority. It was created by former Innovation, Science and Technology Minister, Orit Farkash-Hacohen and Former Social Equality Minister, Meriav Cohen.

The creation of the program was influenced by several key factors including the makeup of Israel’s thirty-sixth government led by Prime Minister Naftali Bennet and Alternate Prime Minister Yair Lapid. This coalition government was the first in history to depend on the support of an Arabic party, Ra’am. Consequently, there was a renewed focus on inequalities in Israel’s Arabic communities.

What impact has been measured?

There is currently no available information on the impact of the program which was launched in 2022 and has years left to run.

What lessons can be learned?

It is worth noting that - despite the collapse of the government that introduced the program – Israel’s government has continued to promote policies aimed at the Arabic community in Israel. The 37th government of Israel – led by Benjamin Netanyahu –launched the Human Capital for High-Tech Fund in August 2023 which offers grants for innovative initiatives to train entrepreneurs, especially in research and medical institutions. The grants cover up to 70% of the program funding, ensuring that at least 50% of the participants are from the Arab community.

CURATED BY

Tom Hancock

Research Associate
Global Entrepreneurship Network
United Kingdom