Entrepreneurship in the periphery and local growth: the case of northern Israel

Entrepreneurship in the northern periphery in Israel should be viewed as a response to the crisis in rural agriculture during the 1980’s. Most entrepreneurs left their farms for salaried employment for a few years and they took professional courses in order to learn necessary skills before they opened their enterprises. They have developed new small entreprizes using local resources at times informally as means to reduce risks and they specialize mainly in internal tourism and construction related branches. While Jewish entrepreneurs develop mainly tourism activities oriented toward the national market, Arab entrepreneurs develop mainly construction related branches to local and home regional markets. Both represent two styles of peripheral activities. It seems that both styles has only limited potential to overcome their marginality.