The Chamber of Commerce (KvK) fears that a growing group of companies will become deeply into debt before the entrepreneurs sound the alarm. The Chamber of Commerce makes an appeal: take a critical look at the company’s continued existence, just before the moment that debts are incurred.
According to the authority, the taboo surrounding quitting a company must be broken. “It is very difficult to let go of your dream,” says Marije Hovestad, head of the Chamber of Commerce advisers. “But this complicated situation requires a critical look at your company.”
Vulnerable
For many entrepreneurs it has been a matter of keeping their heads above water in recent months. For the time being, the corona crisis has not yet translated into more bankruptcies. In fact, in August the number of bankruptcies was at the lowest level in 21 years. But that may change now that government support is being phased out, the Chamber of Commerce fears.
According to the Chamber of Commerce, the Netherlands has about 1.5 million vulnerable entrepreneurs. This includes self-employed people on the one hand and entrepreneurs whose company has a VOF, CV or partnership as legal form. With such constructions you can be privately liable for business debts. Hovestad: “We see people who are starting to do business right now, companies that are recovering from the past few months and companies that are not going to make it.”
In their appeal, the Chamber of Commerce focuses in particular on this third group. “We get partners of entrepreneurs who are very concerned. We therefore want to inform entrepreneurs that quitting is also an option.”
‘No option’
Martijn Satter has been the owner of the 40-year-old light and sound rental company Relight Group for 2.5 years. In the good times, 12 permanent employees worked and a pool of 30 freelancers helped with larger jobs. It has now been reduced to 10 people and there is no more work for the freelancers. Turnover is decreasing every month.
In this video, Satter explains why quitting is not an option for him. “Every decision that I make concerns not only my family, but also those of my employees. It keeps me awake for nights, yes. In addition, there is my own money in the company, which means that quitting has private consequences.”
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