From Destruction to Determination: How Grants are Reviving Gaza’s Small Businesses

Running a small business is challenging even in the best of times, but the war in Gaza has devastated local entrepreneurs, making it nearly impossible to sustain their businesses amid widespread destruction and displacement.  

According to a report by the United Nations Development Programme, around 85% of enterprises have halted their production. Meanwhile, 63% of the businesses that are still in operation can only work at less than 30% of their usual capacity.  

To support rebuilding and expansion efforts, Global Communities is providing grants to micro, small, and medium-sized enterprises (MSMEs) and cooperatives in the region. This initiative is made possible with backing from the Swedish International Development Agency, the Palestine Investment Fund and local partner Wefaq Society for Women and Child Care.  

To date, a total of 10 grantees have been able to create 83 new full-time jobs, preserve nearly 12.5 acres of farmland and reach more than 34,000 internally displaced people with essential food and water sources. 

“This support has been crucial,” said Ne’Ma El Qebt, whose food business was destroyed at the beginning of the war. Since then, she has been trying to maintain some semblance of an operation. 

“Following another sudden displacement from Rafah, I lost my equipment and relocated to Khan Younis, where I began rebuilding the Bint Al-Balad Kitchen,” she said. 

After applying for a grant through Global Communities, Ne’Ma received support to obtain essential equipment, cooking gas and worker wages. Now, the business has doubled its production capacity, stabilized its finances and provided full-time employment for 25 women.  

In addition to creating new jobs, these grants have also leveraged the capacities of local businesses and civil society organizations to meet the urgent food and water needs of displaced families.  

Despite losing its Khan Younis branch, Al-Rabee’ Kitchen was able to sustain operations in Deir Al-Balah Governorate, using grant money to set up a nylon-covered location with wood-burning stoves, nearly twice the amount of cooking pots, and a solar heating system.  

This support enabled the business to expand its meal production by 34%, resulting in the daily production of 22,000 hot, nutritious meals for internally displaced people (IDPs). The kitchen has also provided over 1,000 hot meals to vulnerable groups, including cancer patients and impoverished families in displacement camps. 

“We offer assistance to IDPs in Deir Al-Balah every day,” said kitchen manager Mohamed Rabee. “… Things are getting better. Previously, we were displaced to several places. At that time, we assisted others as much as possible.” 

In a region grappling with severe water shortages, Al-Safadi Water Well is addressing a critical need for 6,000 people. Prior to receiving a grant through Global Communities, the well lacked an energy source to pump water. This prompted the local management board to approach Global Communities for support developing the well.  

“The water pump’s capacity was increased from 1.5 horsepower to 3 horsepower, and a solar energy system was provided to operate the well,” said Othman Siam, a member of the local management board. “As a result, we could supply water for free and almost continuously to nearly 600 displaced families in the area.” 

According to Abu Mohamed, an elderly man who has been displaced to Deir Al-Balah, the well has been a critical source of water to meet his daily needs. 

“The water well saved us a lot of effort and trouble in getting water,” Abu said. “Before the [grant], we walked about 2 kilometers and sometimes a kilometer and a half to get water to wash our hands and feet.”  

Upgrading the well also positively impacted local farmers’ lands, which had previously suffered from water shortages. Now, water prices have been reduced by 40% for farmers and they are starting to see the benefits of more affordable and consistent irrigation. 

“Thanks to this grant, these lands were rehabilitated, crops were revived and the number of farmers in the area increased,” Othman said. “Things are going for the better.” 

According to Abu Alaa, a local farmer who uses the Al-Safadi Water Well, the grant support came at “the right time during this difficult situation.” 

As the Israel-Palestine war continues to exacerbate economic instability in the region, the grants provided through Global Communities have not only enabled businesses to rebuild and expand but have also fostered resilience and hope among the local population. The entrepreneurs and citizens behind Bint Al-Balad Kitchen, Al-Rabee’ Kitchen and Al-Safadi Water Well have demonstrated remarkable perseverance, transforming their challenges into opportunities for growth and community well-being. Their efforts illustrate the profound difference that targeted support can make in times of crisis.

While Global Communities welcomes the current ceasefire in Gaza, it will be a long road ahead to rebuild the territory and economy. We urge the international community to support efforts to achieve a lasting peace that addresses the root causes of the conflict and ensures the dignity and security of all individuals in the region.