nrc.nl
Record Number of Business Closures in the Netherlands in 2024
In 2024, a record 153,000 businesses in the Netherlands ceased operations, representing 6% of all businesses; 90% were sole proprietorships, reflecting the growing trend of self-employment, while stricter regulations on disguised employment may impact future closure rates.
- What is the significance of the record number of business closures in the Netherlands in 2024?
- In 2024, a record 153,000 businesses ceased operations in the Netherlands, representing 6% of all businesses. While the closure rate was slightly higher in 2022 (6.1%), the absolute number of closures reached an all-time high due to the overall increase in business registrations over the years.
- How does the increase in sole proprietorships relate to the rising number of business closures?
- The surge in business closures is largely attributed to the rise in the number of sole proprietorships, which constituted 90% of the closures in 2024, up from 75% in 2008. This increase reflects the growing trend of self-employment and the increasing number of sole proprietorships in the Netherlands, which rose from 62% of all businesses in 2007 to 82% in 2024.
- What potential future impact might stricter regulations on disguised employment have on business closure rates in the Netherlands?
- The impending stricter enforcement of regulations against disguised employment (schijnzelfstandigen) starting January 1, 2026, may influence future closure rates. While the CBS cannot currently confirm this impact, many businesses are already choosing to replace freelancers with employees to avoid potential fines, potentially leading to further changes in business closure patterns.
Cognitive Concepts
Framing Bias
The headline and opening paragraph emphasize the record-high number of business closures, setting a negative tone. While the article later provides context by mentioning the increase in the total number of businesses, the initial framing might disproportionately impact the reader's perception of the situation. The inclusion of the researcher's quote late in the article further strengthens this initial negative framing.
Language Bias
The language used is generally neutral and objective. The article employs precise statistical data and quotes from a CBS researcher to support its claims. There is no discernible use of loaded language or emotional appeals to influence the reader's perspective. However, the initial focus on the "record-high" number of business closures could be perceived as slightly negative, though this is mitigated by later context.
Bias by Omission
The article focuses heavily on the increase in business closures without exploring potential contributing factors beyond the flexibilization of the labor market and the crackdown on false self-employment. While the rise of self-employment is mentioned, a deeper analysis of economic conditions, government policies, or industry-specific trends that might have influenced business closures is missing. The impact of the Covid-19 pandemic is also not discussed, despite its significant potential influence on business viability. This omission limits the reader's ability to draw comprehensive conclusions about the causes of the observed increase.
False Dichotomy
The article presents a somewhat simplified view of the relationship between self-employment and business closures, focusing on the correlation between the increase in self-employment and the increase in business closures without fully exploring the causal relationship or other factors that may contribute to the closures. It does not delve into the complexities of different types of businesses or their varying vulnerabilities.
Sustainable Development Goals
The article reports a record high number of business closures in 2024, impacting employment and economic growth. The increase in business closures, particularly among sole proprietorships, suggests potential negative consequences for job creation and economic stability. The discussion of disguised self-employment further highlights challenges in the labor market and potential negative impacts on worker rights and economic security.