Measuring the impact of philanthropy on small businesses: A case study of small business in Israel

Despite the extent of philanthropic activity in the 21st century, where billions of dollars are invested and spent worldwide in philanthropic projects, measuring the impact of philanthropy is still not standardized. This research aims to examine the impact of philanthropy on small businesses, using the case study of 3 philanthropic funds assisting small businesses in Israel between 2015-2017. It uses the theory of “life cycle of businesses” to understand what is the best timing to assist a small business and what type of assistant is the most beneficial at each stage, to maximize the impact of philanthropic investment. The study found a correlation between the location of the business on its life cycle curve and the impact of the help it receives from the philanthropic fund. Another conclusion is that small businesses in their early life cycle benefit from business consultation in addition to the financial assistance offered by the philanthropic fund.