Hundreds of thousands of entrepreneurs could go bust as war’s effects felt

The Dutch Chamber of Commerce (KVK) expects many more bankruptcies in the coming months as coronavirus support comes to an end and the effects of the war in Ukraine take hold. "At the moment, there are about 220,000 entrepreneurs who are really having a hard time. They are faced with the question: stop or continue, and in both cases, how?" said KVK researcher Klein Swormink.

The KvK surveyed a representative group of 1,135 entrepreneurs between February 22 and March 2. They found that many entrepreneurs are doing well, but 14 percent's businesses are in bad shape. Ten percent are close to bankruptcy or just barely surviving.

"After the coronavirus crisis, entrepreneurs have to realize turnover to compensate for losses or debts," Swormink explained. "The big question now is: are they able to achieve a level of turnover that will allow them to be viable in the future and with which they can repay their accumulated debts? In part, that answer will be negative."

Thirteen percent of entrepreneurs are struggling with debts or payment arrears. Most (55 percent) owe money to the Tax Authority, which deferred tax payments as a form of coronavirus support. A quarter owes money to suppliers and 22 percent to banks.