Najwan Jadallah and Feyza A. Bhatti

DOI: https://doi.org/10.6000/1929-7092.2019.08.105

Published: 23 December 2019

Abstract: Political instability have negative consequences on any country’s macroeconomic performance, deteriorating the investment environment and jeopardizing decisions of producers and consumers. Although there have been numerous studies that have focused on the economic costs of political instability, fewer studies have delved into the nuances of everyday challenges entrepreneurs face in Palestine. Utilizing semi-structured interviews with 35 entrepreneurs, study aims at exploring these challenges. The findings reveal that major challenges affects entrepreneurs are the restrictions on mobility of goods and services that impedes business operations, the shortages of cash and labour that limits businesses ability to operate efficiently, and the lack of planning and support from the government that leaves the local industries unprotected against the competition. Addressing the uncertainties emanating from occupation is challenging, but having an inclusive, realistic and implementable private sector strategy, development plan, and special programs to support and advance businesses in Palestine are crucial for the survival of the businesses.

Keywords: Political instability, Occupation, Threat to Businesses, Palestine, Oslo Accord, Paris Protocol.

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