Third of small business owners considering calling it quits
Almost a third (31 percent) of small business owners and self-employed persons are considering closing down or selling their businesses. Entrepreneurs with staff are mainly worried about future high investment costs. Self-employed persons without staff dread stricter regulations, especially around false self-employment, the Financieele Dagblad reports from the Small Business Index by Hogeschool Utrecht, Qredits, and Ondermend Nederland.
According to the researchers, a “shockingly large” number of SME owners occasionally, often, or constantly considered throwing in the towel and closing their business in the past year. Ultimately, only 4.4 percent of small businesses expect to actually close in the coming six months.
A third of small business owners say they would look for a job if they were to stop their business. Only a fifth would set up a new company.
The tight labor market plays a big role in that, lecturer Lex van Teeffelen of Hogeschool Utrecht told FD. On the one hand, small businesses are struggling to find workers. On the other hand, business owners have a good chance of finding a good job. “For about half of the small entrepreneurs, it is still a struggle. Sometimes the staff earns more than the entrepreneur himself has left, for example in the catering industry and retail. In that case, a job with security and a good salary is attractive.”
Self-employed persons without employees are concerned about stricter regulations around false self-employment next year. Some of them are considering an employment contract. “We will undoubtedly see a dip in the number of self-employed people,” Van Teeffelen said.
Figures from the Chamber of Commerce show that the number of entrepreneurs closing their businesses has increased rapidly since the beginning of this year. In the third quarter, over 34,000 businesses closed down, an increase of 15 percent compared to a year earlier. At the same time, the number of startups has been declining for a long time.
