Abstract: Objective: This study aimed to analyze of the ecosystem surrounding startups in Palestine in general, with a particular focus on public finance; specifically, how public authorities can enhance the regulatory framework and adopt incentive policies for startups and entrepreneurship to create a positive long-term impact on both the overall economy and public finance. Methodology: The study's methodology primarily involved conducting in-depth interviews with a sample of all stakeholders related to the Palestinian startup ecosystem. This included government entities, relevant public bodies, startups, entrepreneurs, accelerators, incubators, venture capital funds, universities, innovation centers, and legal entities. Results: The study reached several important findings and conclusions. Despite some limited success stories in the field of startups, the absence of an effective ecosystem, and operating in a complex environment surrounded by numerous political, economic, and social challenges, have negatively affected the growth and development of startups and the local economy. From a public finance perspective, the study found that the impact of government financial and tax incentives for startups cannot be evaluated solely in the short term. Doing so would yield misleading results and discourage governmental efforts and endeavors to support this important sector, especially considering the successive financial crises the government faces due to the Israeli occupation. Conclusion and Recommendations: Therefore, there was a consensus on the necessity of a complete income tax exemption for startups during the first five years of the project’s lifespan, like practices in many other countries. This measure is expected to result in a clear and rapid increase in the number of startups, an increase in their workforce, and enhanced capacity to expand and open new domestic and international markets. This, in turn, will clearly lead to an increase in public revenues through the direct and indirect taxes that startups will contribute to the public treasury. Keywords: Startups, Palestine, Public Finance, Entrepreneurship, Ecosystem.

Title

An-Najah University Journal for Research - B (Humanities)

Publisher

An-Najah National University

Publisher Country

Palestine

Indexing

Scopus

Impact Factor

None

Publication Type

Both (Printed and Online)

Volume

39

Year

2024

Pages

91-102