One of the groups most affected by the corona crisis financially is that of the self-employed. What makes them so vulnerable economically? And how can they survive the crisis?
As if the 1.2 million Dutch self-employed people are not yet having a hard time, Minister Eric Wiebes of Economic Affairs stated that they “consciously take risks” by not wanting a permanent contract. The fact that he forgot that many – say employees of platforms such as Uber and Deliveroo – are self-employed because their employees do not give contracts, was forgivable. He came back to his statement.
But even for self-employed people who consciously choose it, the comment remains a bit bland, according to economist Ronald Mulder: “A pandemic is not really a risk against which you can insure yourself as a self-employed person. If you have a beach tent and it rains During a summer, you speak of an entrepreneurial risk. But if the municipality says: you have to close for a year, then I don’t know whether you can call it that. “
‘Support is a way to enter social assistance benefits’
Why this group is so vulnerable financially, according to Mulder, is due to the lack of government support: “Tozo (Temporary bridging scheme for independent entrepreneurs) is not much more than an easy way to enter social assistance benefits.” The benefit is in fact a supplement to the social minimum, or social assistance level.
“Imagine: you earned 3,500 euros a month and now have to make ends meet at social assistance level,” Mulder continues. “Often your housing costs are already higher than the social minimum, so then you start eating your savings. Moreover, a large part of that money is in a pension scheme with self-employed people, so you cannot just access it.”
“Tozo was peanuts, but better than nothing.”
Natalie van Dam, self-employed
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Natalie van Dam (real name known to editors), communications advisor and self-employed person, earned about a tenth of what she normally brings in in 2020: “Tozo was peanuts, but better than nothing. At the beginning of the crisis I had zero assignments, everything stood still. In the meantime I have assignments, but almost nothing compared to normal.
Nevertheless, Van Dam keeps his courage: “Now that we have started the vaccinations, things will look better next year. Until then, I will not throw in the towel.”
‘Takes up to four years before we get over the blow’
Elections have since taken place. The largest parties want to support entrepreneurs. Does Mulder think that this will make it financially better for self-employed people? “It seems like the time to design a good package for them for the next four years. A lot of people think we are three quarters of the crisis, but I suspect it will be another three or four years before we take the economic blow. have come up. “
Jerry Helmers, chairman of the ZZP Netwerk Nederland, believes that the self-employed should take control of the situation themselves. “Forced or conscious self-employed person: if you want to get out of crises, you have to start from marketing. Sell yourself.”
“A financial buffer gives you room to improve your working method.”
Jerry Helmers, ZZP Network Netherlands
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The three C’s are a tool that Helmers would like to provide self-employed people with: “Case: reason what the problem is in your company, Causal: What is the connection that could have caused the problem, and Commitment: you have to show that in order to get a better result. If you discuss these three steps with yourself, you lay the foundation for a solution. “
According to Helmers, many self-employed people see the money they earn as a reward. “But it is also a means of investing in better software, better services. In other words, in growth. I don’t downplay anything, but it’s about choices.”
“For example, at the beginning of the crisis, I spoke to a self-employed person who went bankrupt immediately, but was still on winter sports a few weeks earlier.” An example of a self-employed person who did not do well, says Helmers. “A financial buffer gives you room to improve your working method. COVID-19 or not: an entrepreneur without a vision is not going to make it”.
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