Economic Resilience Amid Conflict
When Liron Birenzweig was forced to evacuate his home in northern Israel after October 7, his dessert business faced total collapse. What began as a small malabi custard stand near Kibbutz Dafna had grown into a multi-channel operation featuring a shop, catering service, and a mobile food truck. Suddenly, those assets sat idle in a high-conflict zone. The displacement set his business back by five years. He had two options: wait for government compensation or fundamentally rewire how the business functioned.
Birenzweig chose the latter. He moved operations south and shifted his product strategy to focus on scalable corporate orders. This pivot was not just a reaction to immediate danger but a structural change designed to withstand future shocks. Small businesses in the Western Galilee make up over 90 percent of regional enterprises and sustain more than half of the local workforce. When these businesses fail, the entire economic foundation of a region disintegrates. Over 70 percent of firms within three miles of the border reported sharp revenue drops in the months following October 7.
Programs Driving Operational Reform
The American Jewish Joint Distribution Committee (JDC) recognized that traditional aid was not enough. Through its 360 Business Mentoring Program, the organization shifted focus toward improving productivity and workforce stability. Since late 2023, more than 320 businesses have participated in this initiative. The program provides one-on-one mentorship and practical training to help owners navigate labor shortages, volatile markets, and rapid technological shifts. Lior Schillat, who directs the organization's workforce development division, emphasizes that the goal is long-term operational health rather than temporary financial relief.
Daniel Mirman, a civil engineer, experienced this shift firsthand within the construction industry. Before the conflict, the sector relied heavily on manual labor that disappeared overnight when borders closed and security conditions worsened. Mirman joined the 360 program and secured an innovation manager role at the Minrav Group. He immediately replaced manual planning processes with drone-based monitoring and robotic painting tools. A reporting task that once occupied 18 hours of an engineer's week now takes minutes. The transition required changing internal habits as much as installing new software.
Scalability and Future Growth
Hospitality chains faced equally severe threats. Auren Ranford, former CEO of the Domus hotel chain, watched occupancy rates plummet to zero as conflict disrupted travel. During his time in the 360 program, Ranford implemented an AI-integrated WhatsApp system combined with automated hotel management software. This transition removed the need for traditional front-desk manual work. Across eight locations, the company eliminated 16 daily administrative shifts while increasing staff presence in guest-facing roles. The goal remained the same: use automation to allow people to do the work they do best.
To move beyond survival, the JDC launched the Growth Generator initiative. This project partners with Netzer Capital and the 8200 Alumni Association to prepare businesses for scaling and investment. It provides entrepreneurs with the professional assessment and technical guidance necessary to attract outside funding. Birenzweig utilized this support to move from manual Excel spreadsheets to a unified management system. He now manages a team of seven and plans to scale his facility to produce thousands of units daily.
The broader economic impact of these efforts remains significant. By connecting small firms in the periphery to modern management practices and capital, the initiative creates high-quality jobs that help anchor communities. The model suggests that the next phase of economic recovery in Israel relies on companies that prioritize tech-driven efficiency. For owners like Birenzweig, the outcome is clear. Businesses built to withstand volatility can grow in the very places that once seemed too risky for investment. The path forward is not just recovery, but a total reimagining of what small enterprise can achieve.