The implementation of the Bbz in 2016
When entrepreneurs are in difficult weather and cannot (no longer) go to their bank or guarantee fund for a loan, there is the option to make use of the Decree on assistance for self-employed persons 2004 (Bbz). Entrepreneurs will then have to deal with the municipality and fall under the social assistance regime. What does this do to an entrepreneur? And are entrepreneurs able to find their way to this scheme? In short, does the way in which municipalities implement Bbz match the needs of an entrepreneur in 2016?
What is the Bbz?
The Self-Employed Assistance Decree 2004 (Bbz) is a national scheme that has existed since 2004. Municipalities are implementing the scheme, whereby existing and starting entrepreneurs are supported to resp. to continue a business or to start a business. For existing entrepreneurs who are in dire straits, there are options for obtaining a credit (up to a maximum of € 190.000). In addition, it is possible to supplement the income up to the level of assistance. There are also options for starters to obtain a starters credit (up to a maximum of € 35.000). One of the conditions against which municipalities assess is whether the company is viable. This means that the company provides sufficient income to survive. In addition, the entrepreneur must work at least 1225 hours per year in his company. Finally, the entrepreneur must, in principle, pay interest and repayments on the amount that he borrows from the municipality.
Taboo
Entrepreneurs often associate Bbz directly with assistance and with all the negative prejudices that accompany it. Receiving assistance is still a big taboo, especially among entrepreneurs. Assistance is often associated with the feeling of failure. In addition, it is important that an entrepreneur is often too proud to hold up his hand and accept help. This is a pity, because the Bbz can offer a solution!
Unknown makes unloved
Until certain entrepreneurs have to deal with the Bbz, many of them have never heard of the scheme. The awareness of the scheme therefore leaves much to be desired. Municipalities should take measures to raise awareness of the possibilities of the Bbz, so that entrepreneurs are better aware of this and are prepared to take the step to knock on the door of the municipality for support.
Differences in implementation
As mentioned, municipalities implement the Bbz. However, there are quite a few differences in the way in which municipalities implement the Bbz. One municipality chooses to pursue an active policy of finding and guiding suitable starting entrepreneurs. Admittedly, these municipalities run a risk when granting certain credits. After all, the borrowed money must also be paid back. Less active municipalities run this risk less or not, but, on the other hand, do not get the most out of the scheme. That is a pity, because the scheme can strengthen the economy in a city and boost employment.
Responding to the needs of the entrepreneur
Bbz has existed for more than twelve years and a different time has come about. The scheme assumes that an entrepreneur is actually working full-time with his company (at least 1225 hours per year). In the current economy and labor market there is more and more flexibility, so you see more and more forms of hybrid or part-time entrepreneurship arise in which people are partly employed and partly employed in their own company. The Bbz does not provide for this, so there would be a wish from municipalities to adjust the Bbz in this respect, whereby a better connection with the labor market is made and the response of the entrepreneur is better anticipated.
Municipalities should facilitate, stimulate and where necessary provide (financial) help from both an economic and social perspective. Municipalities can do this by actively looking up entrepreneurs, actively implementing the scheme, increasing the brand awareness of the scheme and responding to the needs of entrepreneurs.
Yvonne Tiemens
Legal policy officer Work and Income, Municipality of Deventer