Riga, september 26th, 2014

Ronald HorsmanBusiness consultant internet UWV - Public Employment Service Netherlands

Business start-ups in the Netherlands(self-employed without employees)

Situation in the Netherlands

Growing numbers in start-ups

2

Self employed starters as % of total labour market 1996-2010

Figures 2013

Work force : 7.2 million Self-employed (without employees) : 790.000 (11%)

Special branches: Construction (25%!), retail/wholesale, (business) services

65% Male, 35% Female 100.000 start-ups, 11% after unemployment benefit

After 5 years, 30-40% failure (only 25% of the unemployed starters fails)

3

Starting entrepreneurs with unemployment benefit 2006-2011

4

♀♂

Gender Age Education

Middle

Low

High

Univ.

35-4545-55

>55

<35

Reasons for growth of start ups

Economic reasons: Less government, more civil/personal initiative Employers hire starters to lower costs and risks Better earnings than work via temporary agencies It is necessity driven because of poor options in labor market Extra legislation and measures

Social reasons: Living your dreams Personal responsibility / being independent Consumers purchase services more frequently via individual entrepreneurs

instead of larger companies (e.g. gardening, construction, advise, coaching) Higher age and higher education levels (unemployed) trigger startups Influence of (mobile) internet

5

Support mechanisms and measures

Legislation Fiscal (low tax rates, subsidies) Social security (start up with unemployment/social benefit) Economic benefits (investment bonus, low interest on loan) Future plans: legislation of public insurances on unemployment, disability,

pensions

Information & advice Public- Chamber of commerce- Tax-office- Public employment service (UWV)- Municipality (social/economic affairs)

Private initiatives: lots of advice and coaching (internet)

6

Policy, role and task of UWV

PolicyBusiness start up is for a growing part of the unemployed a sustainable way to find work. RoleInform people about the possibilities and consequences of starting a

business on their own while having an unemployment benefit.Facilitate this opportunity.

Task Information, implementation and control of starter-regulation.

UWV has no role in promotion or advice in making business plans

7

UWV starter-regulation: “Starterscredit”

During 6 months the unemployed starter is free to start business without application duties.But:Business-plan is necesarryPermission by UWV29% reduction on benefit in those 6 months

Goal After 6 months is: Termination of the benefit and gain income by self employment/ entrepreneurship

orStop start up and return to benefit with application duties without the 29% reduction

8

Blended services Online and face to face

9

Information and starting point is primarily digital

Face to face starters workshop is replaced by introduction video and online training

Advantage: 24/7 accessible Standardized Easy cooperation with other partners and platforms Clients like professional digital information

Permission for start up is only given after face to face interview and a check on business plan

Screenshot introduction video

Screenshot Online training ‘Start up with unemployment benefit’

Information about business start up in relation with unemployment benefit. Rights & Duties. Income consequences.

Screenshot training: test Am I a starter or not?

Screenshot training: certificate of participation.Necessary for UWV permission

Example: Chamber of commerce website

14

15