The main core of this study is to assess the current state of the Palestinian Small and Medium
Size Enterprises (SMEs) sector and determine its potential and opportunities open to this sector
for playing a central role in the development process, as well as to examine the reasons behind
the limited presence of SMEs' in the Palestinian territory.
This thesis explores and examines via qualitative and quantitative research methods, the
competitive advantages and distinctive competencies that determine success in firms established
in Palestine before and after the Oslo Agreement. The study embraces two case analyses, indepth
interviews of successful and less-successful firms and an extensive survey interviewing the
owner/manager of established firms in the West Bank and Gaza Strip (WBGS). The empirical
analysis is based on survey data from 200 Textile and Garment ventures. Data was examined and
analysed using multiple statistical analysis, results were summarised and presented in table and
graph forms.
In this study, relations between firms' basic resources, competitive positioning tools, and
performance are analysed. Comparison is made between the performance of firms based in the
West Bank and that of firms in Gaza Strip. Comparative analyses reveal similarities and
differences between the two regions. Implications for firm owner-managers and policy makers
are discussed. Finally, the study provides suggestions for future research