North Holland entrepreneur fears winter: “Heating does not turn on, then I can close”

The problems and costs for entrepreneurs are piling up rapidly: the corona support (NOW and TVL) must be repaid and wage costs are rising due to raising the minimum wage, extreme energy prices and high inflation. Erik Koper, owner of five clothing stores in North Holland, is trying to cut costs on all sides. “I’m really holding my breath.”

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According to Erik Koper, entrepreneur and owner of five clothing stores in Egmond aan Zee, Noordwijk and De Koog, everything has so far been able to pay, but ‘you also have to be able to invest.’ According to him, there is a lack of support. “Sometimes I wonder, does it all still make sense? It still does, but I’m genuinely concerned about that.”

Koper: “Actually, we are in survival mode for the third time. It seems like a kind of extension of corona.” The buyer is forced to cut costs. “The staff is halved and the heating is no longer switched on, because then I can close the store right away. I hold my breath. We can’t cut back any more.”

SME recognizes problems

Marieke Ripken, spokesperson for MKB Nederland, recognizes that many entrepreneurs run into problems. “It is clear that repayment of NOW and TVL received too much and the corona debts to the tax authorities comes at a very bad time for many entrepreneurs. In the meantime, the question is to what extent they will receive compensation for the high energy prices and less money is coming in because keep consumers on the cutting edge due to inflation.”

Ripken continues: “Entrepreneurs see their costs rise sharply due to the extreme energy prices and high inflation. Their costs for not only energy, but also for example for raw materials, transport, rent, personnel are rising sharply. And in most cases they can manage those cost increases. little or no calculation.” Koper adds: “It is also not easy to ‘catch up’ with losses and shortfalls. People do not suddenly eat five steaks in a restaurant.”

“People don’t suddenly eat five steaks in a restaurant.”

Erik Koper, entrepreneur

According to her, it is difficult to estimate what percentage of entrepreneurs will eventually be killed by the enormous accumulation of costs. “Inretail, for example – the trade association of shops in fashion, shoes and sports – fears that a lot of stores will get into serious trouble or fall over and that ‘gaps’ will appear in the shopping streets.” Erik Buyer often hears about bankruptcies in the corridors. “Some entrepreneurs decide to stop under these circumstances, precisely to avoid going bankrupt and losing everything.”

Increasing costs

From 1 October 2022, entrepreneurs must repay their corona debt to the tax authorities. As of January 1, 2023, the statutory minimum wage will increase by more than 10 percent, and a year later for many companies by another 10 percent.

Compensation scheme

There will be a compensation scheme for energy-intensive companies, which the Ministry of Economic Affairs and Climate is currently working on. Ripken: “The companies that have to repay tax debts, NOW and TVL, will in most cases not fall under the heading ‘energy-intensive’. Depending on their consumption, they may partly fall under the price ceiling that is coming for citizens.”

According to Ripken, it is important that compensation is provided for the abrupt and substantial increase in the statutory minimum wage, as employers and employees drew up in their annual report last year. SER advice for the period from 2021 to 2025. “It is understandable and good that the cabinet wants to do something for the lowest incomes via the minimum wage, but more than 10 percent at once, and especially at this time, is very substantial and entrepreneurs should be able to wear it.”

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