Self-employed in collapse: Five years of emergency in the country and the feeling of abandonment

(live here) – Since 2020, Israeli citizens have been living in an almost unimaginable reality of ongoing emergency. The coronavirus wave, "Guardian of the Walls," "Black Sabbath," "Iron Swords," and now Operation "Am Kalavi" against Iran – there seems to be no respite. Amidst all these security and health developments, there is one group that bears the burden of the economy on its back, but remains almost unresponsive to the state: the self-employed. Those people who chose to be their own bosses, those who work in the fields of law, care, events, commerce, and services, find themselves repeatedly on the economic front without a back.

While salaried workers enjoy a guaranteed income, National Insurance refunds and clear social rights, the self-employed are forced to reinvent themselves in every crisis, amidst a bureaucratic struggle for compensation, most of which does not arrive at all or is returned to the authorities with interest. This article brings the voice of the self-employed, their sense of deprivation, their struggle for recognition and the harsh economic reality that takes place far from the headlines, but at the center of the lives of hundreds of thousands of Israelis.

The emergency continues – and the market is not recovering

Five significant crises in five years – this is the context in which the world of the self-employed must be understood. Unlike salaried employees who receive a fixed salary, part of which is funded by the state, the self-employed depend on ongoing income, meetings with clients, physical sales or care services, which in times of war simply cease to exist.

As the economy shifts to emergency operations, we all deal with anxiety, uncertainty, and existential fear. But for the self-employed, there's also the added financial fear: How will we pay rent? What about the bank account? How will we buy food for the kids?

Huge gap between employees and the self-employed

Employees have certainty – teachers, doctors, police officers, employees in government offices and local governments – their salaries are almost never deducted. Even in the midst of the coronavirus, when employees worked from home or on unpaid leave, their salaries were paid – sometimes in full, sometimes in part – but a framework of security was maintained.

On the other hand, for the self-employed – a complete stoppage of work means a stoppage of income. Not only is there no payment, but additional expenses are sometimes incurred. The State of Israel offers compensation – but it is inconsistent, unclear, and unreliable.

"The state made a fortune on us": Testimony of Attorney Lior Detz

Adv. Lior Detz, who works for the A. Shiloh & Co. firm, sharply described the legal reality in which the self-employed find themselves: "There is no compensation. There is no law - no compensation. The fact that the situation is called an 'operation' and not a 'war' is intentional, so as not to provide indirect compensation. Even what was given in the past was taken back. The self-employed have become a bank from which the state collects interest. There was a feeling of exploitation."

According to Detz, even when the self-employed managed to receive grants, as during the coronavirus pandemic, they were required to return them. "Our argument was simple: Give us what an employee receives. After all, we pay more to National Insurance - but when we need it - we receive nothing."

"No events - no income": The story of wedding producer Tali Golan

Tali Golan, a veteran event and wedding producer, notes that "my field is one of the first to be hit." According to her, "Every time there's a sale, everything stops. Brides are stressed, events are canceled, and profits disappear." However, she chose not to give up: During the Corona period, she opened another business - marketing gift boxes. "There were times when people sent 'encouragement for quarantine' packages, that's how we survived."

Today, the new business is also active, but revenues have decreased. She describes how, despite all this, she received no real assistance from the state. Still, with rare optimism, she says: "During 'Iron Swords', I volunteered to produce weddings for soldiers, and I even helped with a marriage proposal on the base. It's part of the giving in me."

Clinic shut down – and no help: Melina, emotional therapist in the water

Melina Tzafrir, owner of an emotional water therapy clinic, describes the pain of the shutdown. "I can't treat – the pool is closed. I was already hurt in September-October, and now again. There is no compensation, no consideration, no recognition."

According to her, the public tends to support tangible businesses – food, retail – but “emotional care is not seen as essential, even though it is perhaps the most important tool in situations of anxiety, stress and depression. The studies prove it – but the state ignores it.”

Anat Ashkenazi: I don't know if I would have survived without my husband's work as an employee

Anat Ashkenazi, a spiritual mentor and trauma and anxiety therapist, emphasizes that in the past five years, independent businesses have been severely affected by every emergency event – ​​from the coronavirus to Operation "Am Kalavi." Although the needs for emotional, marital, and anxiety treatment are only increasing in the shadow of the closures, threats, and alarms, many are giving up on themselves for financial reasons: "People are forced to choose between making a living, food, paying the mortgage, and caring for children and grandchildren – for emotional treatment, which in the eyes of many is seen as a luxury," she explains.

Ashkenazi adds that even when she offers Zoom sessions, patients prefer face-to-face treatment – ​​the same format that provides a sense of closeness and security, but is not possible during evacuations and lockdowns. In the recent Iranian attack, the fear of traveling on the streets and staying outside the home, along with the need to look after family, made it even more difficult to get to face-to-face sessions.

Due to the dire situation and the complex bureaucracy, Ashkenazi chose not to seek reimbursement from the state, and currently relies on the salary of her husband, who works as an employee. "If I were solely self-employed," she declares, "I'm not sure I would survive financially these days."

"If I don't have me, who has me?": Dana Gur Ari, tells of an endless jingle

Dana Gur Ari, owner of a content strategy company for businesses BDyuk, a mother of three (including a baby), runs a business that almost completely collapsed during the coronavirus pandemic – and is now struggling to survive again. "All the customers were gone in three days, I was working nights. Now, in the current campaign – no school, the kids are on Zoom, I'm trying to work at night, with a baby in my arms. It's crazy."
She says she received compensation from the state – but only for short periods. "Everything is temporary, spotty, and doesn't give any security. I'm fighting – but it's a daily war."

Herzl Street Closed – The Rents Continue: The Story of Orit Avital Suissa

Orit Avital Switzerland, owner of a clothing store on Herzl Street in Haifa, was forced to close the store since the "With a Dog" operation against Iran began. But the rent, property taxes, and all fixed expenses continue. "During Corona, we still received compensation. Today - there is no idea what will happen. The public can help - come and buy physically, not online. But the state is silent!"

She said she bought stock for the summer and the end-of-year celebrations – but now there is no one to buy. "I lost in advance. Who will compensate me?"

Independence comes at a high price: Dan Crystal's recommendations

Dan Crystal, a management and organizational consultant and the owner of Cristal Clear, warns: "It won't end here. Those who don't prepare in advance for the next crisis will collapse." According to him, we live in an era of 'permanent emergency' and an independent business that doesn't develop operational and financial resilience simply won't last. Dan offers three tools:

1. Maintain human contact – Connect with customers and suppliers not just as a business, but as a person. It’s not just a ‘sale’ – it’s a relationship.
2. Strengthen your digital presence – Publish professional content that provides value, even if you are not currently selling. The market remembers who was there in times of crisis.
3. Offer a service tailored to reality – If you are a lawyer, give a Zoom lecture on rights during an evacuation. If you are a parent instructor – deliver a webinar on dealing with anxiety in a shelter. For a fee, even if symbolic – so as not to give up your value.

The state is shirking – and the independents are crying out

The common denominator in all the testimonies in this article is clear: a sense of abandonment. The state places the self-employed on the front line of the economy, but on the last line of compensation. When a crisis strikes, the self-employed are the first to be hurt, the last to receive a response.
A series of protests that have taken place since the coronavirus – attempts at legislation, applications to the High Court, private initiatives – have failed to change reality. Even when the state has provided assistance – it has been provided late, with burdensome bureaucracy and sometimes with late repayment demands, plus interest.

The public can change – but the state must act

Some of the interviewees called on the public to come and buy from small businesses, "not to order from abroad, but from the neighbor's store." This sends a strong message of solidarity, but it is not enough. The solution must come from the state: recognizing the fact that an independent business is like an employee - and must be given the same conditions in times of crisis. Creating a permanent mechanism for rapid and effective compensation in times of emergency, including the self-employed under the protections of National Insurance, and perhaps most importantly - changing the public discourse that continues to present self-employment as a free choice with only advantages.
Life is not a free choice. And independence comes at a high price.

Minister of Economy and Industry Nir Barkat: I formulate solutions to restore business activity.

Minister of Economy and Industry, Nir Barkat, said: "I completed a round of talks with the heads of the business sector, Dovi Amitai, Chairman of the Business Sector Presidency, Dr. Ron Tomer, President of the Manufacturers Association, Shahar Turgeman, President of the Association of Chambers of Commerce, and Roy Cohen, President of the Lahav Organization, on Tuesday, 17/06/2025. During the talks, a series of challenges that the business sector and the entire economy are currently facing came up: a shortage of workers, delays in essential work permits, logistical challenges, businesses that have closed and are in real distress, and more. Together, we are formulating a joint solution map, which I will present in the coming days in discussions with the Ministry of Finance and the Home Front Command with the aim of gradually restoring business activity, and in accordance with the security situation. The Israeli economy is strong but needs certainty, backup, and conditions that will allow it to continue operating even in times of emergency." "The Ministry of Economy and Industry will continue to work to ensure the functional continuity of the Israeli economy and industry."    

Municipality: We continue to use all the tools at our disposal to make things easier for the self-employed

The municipality responded by saying that it is aware of the situation of the city's business owners, who have been severely affected in recent days. "We are attentive to the hardships, recognize the economic difficulties and are supporting businesses as much as possible, but it is important to clarify that local authorities are subject to state guidelines and are not authorized to grant discounts or exemptions from property taxes or other mandatory payments, without express approval from the Ministry of the Interior. In the meantime, the Haifa Municipality continues to act with all the tools at its disposal to provide relief. Immediately upon the outbreak of the recent events, a directive was given to refrain from opening administrative collection procedures for businesses that were affected. The relevant departments are making every effort to provide relief to business owners, out of understanding of the situation on the ground. The Haifa Municipality will continue to stand by the business owners and support them as much as the law permits, with responsibility, sensitivity and dedication."

Ministry of Finance: The ministry will know how to provide the economic envelope for businesses and employees across the country

The Ministry of Finance responded by stating that the State of Israel is still in the early days of the event.
"The Ministry of Finance sees great importance in returning to the routine of economic activity wherever this is possible in a responsible manner. As is known, the security guidelines on the activity of the economy are received by the Home Front Command and the National Emergency Authority (NRA) and are updated in an orderly manner according to developments. As has been done in the past in previous events and as needed, the Ministry will know how to provide the economic envelope to businesses and employees across the country."