A call to action for SMEs: make use of the financial support

Turnover loss

So far, forty thousand entrepreneurs have applied for funding. In proportion to the amount of entrepreneurs in trouble, this is a relatively small number. More than sixty thousand SME entrepreneurs are active in the horeca sector alone, one of the hardest hit industries. An average turnover decrease of 75 percent has been calculated by comparing this year's pin transactions with transactions from the previous two years, says Phlippen. Also in another hard-hit sector, the retail industry, a loss of turnover of about 80 percent is estimated.

Regulation or reserves?

Phlippen can’t imagine that entrepreneurs do not know about the regulation, or that they are fully relying on their reserves. U.S. data shows that SMEs in the retail and horeca sector can compensate for an average of 15 to 20 days of lost sales with their savings before they crash. If the Dutch companies resemble the American ones, it will not end well without support, concludes Sandra Phlippen.

The solution

Many businesses try to reduce their costs and start discussing the rent with property owners. Large retail chains are mostly successful and know how to negotiate a price drop. Smaller entrepreneurs, on the other hand, often do not have this position. Phlippen fears that flexible contracts will suffer from this first. In her opinion, it is therefore key that entrepreneurs let go of their aversion towards the support and ask for help. If this does not happen, the economic misery will continue to spread. Phlippen is plain and simple, don’t be afraid to ask Minister Hoekstra for a little financial aid in these times of crises.