Startup financing scheme launched as business confidence plunges to all-time low
The government's aid package for startups and scale-ups launched on Wednesday. These businesses can now apply for a bridging loan. The coronavirus crisis dealt a massive blow for business confidence, especially in consumer-oriented industries. "Never before were so many entrepreneurs negative about the expected turnover as in April 2020," Statistics Netherlands said on Wednesday.
The startup aid package is intended for businesses that do not qualify for other coronavirus support schemes. The aid package consists of 200 million euros, half of which came from the government, the other half from investment company InvestNL. In addition to startups and scale-ups, small and medium sized businesses that work on innovative solutions can also claim from this fund.
The majority of entrepreneurs in consumer-orientated industries expect that they will have less turnover and fewer employees in the second quarter of 2020, according to Statistics Netherlands. 90 percent of entrepreneurs in the travel industry expect a lower turnover. The same goes for 80 percent of entrepreneurs active in culture, sports, recreation, car and motorcycle dealers, repairers, and other types of personal services.
In the retail sector, expectations are more divided. 44 percent of entrepreneurs in this sector expects a lower turnover in the second quarter, while 20 percent anticipate an increase. The other 35 percent think their turnover will be about the same.