As the war with Iran enters its second month, about 50 percent of small startups and more mature tech firms say the absence of employees is taking a toll on both meeting development goals and product launches, according to a survey by the Israel Innovation Authority.

The past 31 days have been a challenge for businesses and employees in Israel. Thousands of employees are away on reserve duty. Others are occupied with children as schools have remained closed, and the fatigue from the constant rush to shelter every time a siren sounds due to Iranian missile attacks.

To assess the war’s impact, the Israel Innovation Authority conducted a survey among 637 CEOs, founders, and executives of high-tech companies and startups during the third week of fighting with Iran, between March 18 and March 23. About half of the surveyed reported that more than a quarter of their workforce is absent, due to a combination of reserve duty, lack of educational frameworks, and security restrictions.

“At present, the sector is facing a range of challenges related to human capital, supply chains, product development, and access to capital,” said Israel Innovation Authority CEO Dror Bin. “Experience from recent years shows that the sector has proven its ability to recover quickly.”

Among the reserves are many employees working in the tech sector, the growth engine of the Israeli economy. As a result, startups and tech firms, while continuing to operate, face widespread human capital shortages,........

© The Times of Israel