Do you work for a municipality and do you have to deal with citizens who are or have been entrepreneurs and who have financial problems? Then the information below is intended for you. Here you will find more information about the benefits of debt counseling for entrepreneurs and the collaboration with Zuidweg & Partners.
Debt counseling in the interest of our society
Partly as a result of the economic crisis, the number of small entrepreneurs has grown rapidly. Of the 1,5 million companies that the Netherlands currently has, 1 million are self-employed. Entrepreneurship is risky and Zpp employees are an extremely vulnerable group. 70% of all freelancers close their businesses within 4 years, 60% of which for financial reasons. The increase in self-employed persons therefore also means an increase in people with financial problems.
The benefits of debt counseling
From the investigation Debt counseling pays off (2011), conducted by Hogeschool Utrecht, it appears that debt counseling in several areas leads to significant cost savings. Every euro spent on debt counseling yields between € 1,70 and € 2,60. The biggest savings are on the grounds benefits en live made. People who receive debt assistance need less benefit between 4 and 12 months. For families this saves more than € 5.000 (at four months) to € 16.000 (at 12 months). For every 100.000 inhabitants, this is a saving of € 1.285.000 to € 3.854.000. With regard to the terrain live debt counseling prevents housing associations from having to make payment arrangements and evacuate homes. This saves € 100.000 per 406.000 inhabitants.
The aforementioned research is aimed at private individuals with debts. Savings are considerably higher for entrepreneurs due to the more complex debt situation. Entrepreneurs with financial problems have an average of € 142.413,09 in debt spread over some 18,4 creditors. In addition, these entrepreneurs deal with clients, customers and employees who suffer increasing damage.
Debt counseling is a challenging task
Debt counseling is a challenging legal and social task. The entrepreneur's debts must be inventoried, the accounts must be organized and it must be determined how much of the debt can still be paid. Subsequently, negotiations take place with the creditors about how much the entrepreneur can pay.
Entrepreneurs in financial difficulties need a lot of support and attention. Debt is an enormous psychological burden. The entrepreneurs suffer from strong feelings of shame, being alone, fear and loss of control. In this situation, personal relationships with partners, family members and friends are often severely affected.