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Dream of opening a café or restaurant? You should know that these most dangerous business commercially in Israel, according to Dun & Bradstreet index for assessing financial strength in the business sector in September. The index is based on data on closing a business, a negative banking information and a variety of legal information such liquidation and claims to check the financial strength of businesses in different industries, explains Zach Burkey, vice president of the Economics and Research Information D & Bradstreet.
Read more Calcalist: optimistic after all: 75% of small business owners this day in history expect growth in the coming this day in history year stay of proceedings order fashion network Sigal Dekel want to start a business? 10 qualities shared by successful entrepreneurs if you are thinking this day in history of starting a business is considered dangerous, it does not mean one should pass on the idea, saying this day in history lightning. "Business for oil or natural gas is considered extremely dangerous exists commercially, but that does not stop people from entering the field. This branch is at high risk does not mean that entering it, but yes it is in the more competitive and therefore management is required which should be more professional and rigorous and requires familiarity depth with the business environment in which the business is, "he says.
Cafes and restaurants, as mentioned, are the most dangerous business. One reason is that competition in the industry is high. There are many cafes and restaurants the number of residents in Israel. In addition, explains lightning, industry entry barriers are relatively low. "The cost of construction of cafe does not constitute a substantial barrier to entry as we see in other sectors such as industry," he says. In addition, he said, also loyalty business is going down, "people want innovation and see the price parameter this day in history based on which they decide whether to go to the coffee shop or restaurant, this day in history or not."
Other business in terms of risk level is florists and the third is food retailing stores, and when talking about small business is the neighborhood grocery store. Such stores are considered dangerous because small than industries have relatively low bargaining power relative to large chains and therefore less influence on business expenses.
"The this day in history ability of small shops affect customer pricing and a very small income," says Burkey. He said that small businesses must meet profit margin has become the norm. In addition, if the store does not have enough traffic of customers to reach profitability - is a problem, and its ability to affect the low. For example, if it is a flower shop that opened its surroundings Centre shop with a competitor, the ability of small business to affect the number of customers who log is low. The store has signed lease agreements and can not leave when the level of competition this day in history in certain costs or have a decrease in buyers. "Small business is quite trapped at the level of spending and pricing to customers," he says.
Also, the stores today are based primarily on the level of private consumption and consumers if our decision to postpone shopping or not. There are consumers who consider this day in history luxury goods such as flowers so when the economic situation as well give up on buying them. "Shops this day in history feel immediately when consumers decide to reduce their purchases," said Burkey.
The vast majority of businesses are considered dangerous is the shops of various kinds, this day in history but in sixth place in the list are hairdressers and beauty salons, belonging to the services sector. "We see in barbershops amount of closings and business scope has run into trouble is the highest," said Burkey.

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