Starting a business while on social assistance benefits
You have plans for your own business, but you are living on a social assistance benefit. As you are not yet earning enough money in the startup phase, you can get financial support through your municipality. This is called the Decree on Social Assistance to the Self-Employed (Bbz). Read what you need to do to get this support.
Contact your municipality
First, contact the municipality where you live. Ask about opportunities to prepare for starting your own business. Usually, there are different programmes. Such as coaching from an expert or through a course.
Find the contact details of your municipality (in Dutch).
Make a business plan
The municipality will ask you for a business plan. This is important for assessing whether your plans are feasible and will result in a healthy business. In a business plan, you make it clear how much money you think you will need to start your business. And how much profit you expect to make.
Read more about making a business plan.
Starting your business under the Bbz
If your municipality approves your business plan, there are 4 ways you can get financial support from the Decree on Social Assistance to the Self-Employed (Besluit bijstandverlening zelfstandigen, Bbz). The 4 ways are:
- A temporary supplementary benefit up to the level that applies in your situation. This is called a Bbz benefit.
- Business capital or a start-up loan that you can use to start up your business. This is called a Bbz business loan.
- Taking part in a starter programme.
- Advice and coaching.
Find out more about the many options for Bbz support at Krijgikbbz.nl (in Dutch). The services on offer may vary from one municipality to another.
Assistance from or via the municipality
Some municipalities manage the Bbz process themselves. Others ask other groups, such as BZF in Friesland and ROZ in Twente and the Achterhoek, to do this. These groups will then help you to apply for Bbz.
Personal to-do list: start a company in the Netherlands
There is a lot involved in starting a company. The questions in this tool will help you draw up a summary of what you need to do and arrange in your specific situation. You will also see which laws and rules you need to consider for your business.Create your to-do list
Conditions for the Bbz
To make use of the Bbz, these conditions apply:
- You need the income from your business to live on.
- You are over 18 years old and have not yet reached the state pension age (Algemene Ouderdomswet, AOW).
- You have the Dutch nationality or a valid residence permit.
- Your company is established in the Netherlands.
- You have the relevant diplomas or permits needed for your business.
- You have full control over your business, either alone or with a business partner.
Find out more about all the other general terms and conditions of the Bbz at krijgikbbz.nl.
Find out with the Bbz-check (in Dutch) if you are entitled to Bbz support.
Different conditions per situation
Whether you are entitled to assistance under the Bbz depends on your personal situation. The same applies to the type of social assistance. It may be a loan or a gift. Your own assets play an important role in this. The municipality will help you find out what applies to you.
Set off profit against your benefit
The municipality may offset the profits from your business against your Bbz benefit. Whether this is the case depends on your municipality's conditions and your personal situation. The rules may differ from one municipality to another. Ask your municipality what this means for you.
Do you have a Bbz loan? You pay this back in accordance with the agreements you have made with your municipality. Do you make a lot of profit? Discuss whether you might be able to repay it earlier or a larger amount at once.
Have you decided to end your business and want to apply for social assistance again? Ask your municipality about the possibilities.