One in five businesses worry election will have negative consequences

Nearly one in five entrepreneurs expects the elections to have a negative impact on their business, according to ING, based on research among more than 500 self-employed professionals and small companies with up to twenty employees. “Entrepreneurs want to move forward, but feel held back by political uncertainty,” says Arjen Hoekstra, director of small business at the bank.

ING warns that political gridlock and indecision are fueling uncertainty among entrepreneurs. Close to one in five expect the results of the parliamentary elections to harm their company’s finances. Optimism is limited, with only 4 percent of self-employed professionals and 13 percent of small and medium-sized enterprises anticipating a positive outcome from the late-October elections.

Most self-employed professionals and SMEs still rate their financial health as positive. Yet, the study shows growing pessimism among self-employed workers and declining satisfaction among SMEs with their financial reserves. Self-employed individuals are also worried about increased scrutiny of false self-employment.

“In both cases, they see fewer financial opportunities to achieve long-term growth goals, and less than half feel well-informed about relevant laws and regulations,” Hoekstra says regarding the financial health of self-employed professionals and SMEs. “The combination of slow economic growth, political uncertainty, and limited reserves makes it difficult to invest in the future.”

Just 42 percent of self-employed professionals are actively building a pension, compared with 48 percent of small and medium-sized businesses. Enrollment in disability insurance is also low, with only 25 percent of self-employed workers having a policy versus 42 percent of SMEs.

The primary reason cited for skipping disability coverage is the high cost; 55 percent of self-employed professionals and 37 percent of SMEs point to expensive premiums.

Furthermore, the study shows that small and medium-sized enterprises are more likely to invest in sustainability than self-employed professionals, with 41 percent reporting they have the means to do so, compared with 21 percent of the self-employed.

Sustainability is also seen as crucial for long-term business stability by 35 percent of SMEs, versus 17 percent of self-employed workers. Among SMEs, those with annual revenues exceeding one million euros are especially active in sustainable investments (57 percent compared with 32 percent).