The role of small businesses in the Haredi sector
The business world has become fiercely competitive in recent years. Globalization, outsourcing, and the internet among other economic factors, have made it increasingly difficult for businesses to survive, anywhere.
This change is amplified in the Haredi community due to its unique characteristics:
Large family size = increased need for income = more small businesses
In 2009, the average fertility rate for Haredi women was 6.2 children. In such large families there is a growing need to find another source of income. With a very small percentage of Haredim professionally educated and trained many open small businesses as an additional source of income. This phenomenon has multiplied the number of business competing for the same customers.
Lack of higher education = lack of basic business knowledge.
Although Haredi men and women have excellent creative skills as a result of their extensive learning experience, their severely limited higher education means that they often lack very basic business concepts. Only 10% of Haredim (6% men and 14% women) have higher education.
Lack of support = no community resources to provide professional guidance
There are virtually no Haredi business consultants. The very concept of getting paid business guidance is foreign to most Haredi business owners.