Palestine—Small and Medium Enterprise Assistance for Recovery and Transition (SMART)

Micro, small, and medium enterprises (MSMEs) are the bedrock of the Palestinian economy, accounting for approximately 96 percent of Palestinian firms in the West Bank, East Jerusalem, and the Gaza Strip. Their resilience to economic shocks and their export capacity are essential to Palestinians’ stability, livelihoods, and futures.

However, Palestinian MSMEs and startups have long experienced barriers to growth. These include a local market with limited purchasing power, restrictions on the movement of goods and people, and limited access to export markets, among others.

The Small and Medium Enterprise Assistance for Recovery and Transition (SMART) project, funded by the U.S. Agency for International Development (USAID), supports Palestinian MSMEs and startups to regain productivity following economic shocks (the COVID-19 pandemic and, since October 2023, the Gaza war); grow; and expand. Through a package of grants and technical assistance, SMART invests in the Palestinian private sector to improve firms’ competitiveness, create jobs, and promote economic growth. In parallel, the project works with private sector organizations to mitigate policy and institutional constraints to competitiveness and trade.

Sample Activities

• Support firms to get back to markets, access new local and export markets, increase sales and export revenue, and generate employment opportunities.
• Promote the growth of MSMEs that are owned or managed by women, or where women make up at least half the workforce.
• Support firms that are well-positioned to enhance their environmental sustainability through the introduction of solar panels, more efficient water systems, or recycling and/or upcycling initiatives, among others.
• Support farmers, cooperatives, and MSMEs in the economically distressed northern West Bank to adapt to long-term barriers to growth.

Select Results

• Supported 304 private sector firms and institutions.
• Invested $27.7 million in the Palestinian private sector.
• Helped client firms to increase annual sales by $12.2 million.
• Helped client firms to reach 45 export markets.
• Supported firms created 499 new jobs.