Addiction problems increasing among struggling small business owners

Small and medium-sized entrepreneurs with money problems are increasingly struggling with addiction, the Financieele Dagblad reported, based on a survey by the Institute of Small and Medium-sized Enterprises (IMK). The researchers encounter a wide range of addictions, including drugs, alcohol, and cryptocurrencies. But online gambling is by far the most common.

Approximately 20 percent of the surveyed entrepreneurs are struggling with some form of addiction. Nine of the 14 IMK advisors said that addiction problems are increasing.

The IMK advisors provide support for struggling SME entrepreneurs in over half of the Dutch municipalities. The municipalities refer entrepreneurs who come to them for help to the IMK. The IMK also assesses if the company is viable.

According to the researchers, online gambling is by far the most common addiction among struggling entrepreneurs, followed by alcohol. The Netherlands legalized online gambling in October 2021, and since then, various institutions have warned of an increase in gambling addiction.

The Dutch government has taken various measures to protect citizens from gambling addiction, including banning gambling advertisements and setting a monthly limit on how much someone can lose in a month before they have to prove that they can responsibly spend more.

The government’s income from the gambling tax rose to a record 1 billion euros last year, mainly due to higher revenue from online gambling.