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. The municipality can give you money so that you can pay for the coaching. You will continue to receive your social assistance benefit if you meet the conditions set for you by your municipality.
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 Bbz is an interest-free loan.
You can then start your own business in 4 ways:
- By participating in a starter programme.
- With advice and coaching.
- With working capital or a startup loan.
- With a temporary supplementary benefit.
General conditions Bbz
To make use of the Bbz, these conditions apply:
- 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.
- You are responsible for the financial business risks.
- For your livelihood, you depend (if applicable, together with your partner) on the income from your business.
Some municipalities supervise the Bbz process themselves. Other municipalities have it done by other organisations. Such as BZF in Friesland and the ROZ in Twente and the Achterhoek. They will then help you apply for Bbz.
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.
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Questions relating to this article?
Please contact the Netherlands Chamber of Commerce, KVK