Starting business owner gets stuck on administration and tax returns

Entrepreneurs consider knowledge of tax and bookkeeping to be crucial for a successful start, but much of that basic knowledge only came later. One in 5 starters would have liked more guidance on tax when setting up their business, whilst 1 in 7 lacked information on administration and laws and rules.

Lack of knowledge causes financial stress for starters

The open-ended comments reveal that a significant proportion of starting entrepreneurs experienced financial stress during the early stages of their business. Entrepreneurs state that the lack of basic knowledge led to uncertainty about tax assessments, errors in bookkeeping, unclear rates, or simply the question of whether there would be enough turnover.

Some entrepreneurs describe extremely precarious situations. “Paying the bills. Will I lose everything? My home”, says one entrepreneur. Another writes that the starting phase felt like “barely keeping my head above water from time to time.” Uncertainty about financial obligations also sometimes led to significant losses. As one entrepreneur reflects: “Losing out on a lot of money by not focusing enough on the figures and credit control.”

These experiences show that a lack of knowledge at the outset not only leads to administrative bottlenecks, but also has direct consequences for many entrepreneurs’ financial peace of mind, business continuity, and livelihood.

Starters mainly seek information from their network and KVK

It appears that starting entrepreneurs mainly find their way through the people around them and via KVK. Almost half (44%) received important starting information from other entrepreneurs, family, or friends. Four in 10 made use of information from KVK, ranging from online guides to other forms of starting guidance. An equally large group discovered what was involved as they went along. SME owners in particular learn through practical experience: nearly half of them say they simply got started and gradually discovered what needed to be sorted out. One entrepreneur puts it aptly: “It was a case of learning the hard way. I didn’t always feel that I really had things under control.”

Self-employed people and SMEs have different information needs when starting out

Self-employed people and SMEs appear to have different information needs as soon as they start their businesses. Self-employed people are primarily looking for practical guidance: they are more likely than SME owners to consider information on taxes essential (67% versus 60%), as well as knowledge about insurance (47% versus 39%), and finding and retaining customers (47% versus 39%). SMEs, on the other hand, are more likely to focus on the rules they must comply with. For example, when starting out, they were more likely to have wanted clarity on legislation and regulations (20% vs. 14%) and on subsidies and schemes (17% vs. 10%). “We didn’t always fully realise what was and wasn’t legally permitted,” said one SME owner.

Stumbling over the basics

Christiaan Hazelaar, a business adviser at the KVK, on the importance of basic knowledge at the start: “We see that many entrepreneurs start out full of good ideas, but stumble over the basics. If you’re already struggling with administration and taxes right from the start, anxiety and financial stress quickly set in. Some entrepreneurs are faced with difficult choices within just a few months, simply because they didn’t know what was expected of them.”

“New entrepreneurs often learn by doing,” explains Hazelaar. “But without basic knowledge, this quickly leads to uncertainty and avoidable mistakes.”

Hazelaar emphasises the importance of starting out well-informed: “A good start isn’t a luxury, but a prerequisite. If business owners inform themselves properly from day one, it not only saves stress, but also money and opportunities that would otherwise be missed. Reliable information is available, including from the KVK, but entrepreneurs do not always know how to find it in good time. KVK is here to help, and we are more than happy to do so. Our website contains a wealth of general information. And entrepreneurs can always contact the KVK Advice Team. We can explain that information in more detail, tailored to your personal situation.”

Reliable information and advice essential for starters

The findings of the survey underline how important it is for business owners to have access to reliable information and timely advice. KVK helps both starters and experienced entrepreneurs with practical knowledge, clear explanations of the rules, and personal advice. This enables entrepreneurs to make better-informed choices and anticipate problems at every stage of their business journey.