Starting a business on social benefits

  • Willeke Leensma
  • How to
  • 5 February 2020
  • Edited 24 June 2025
  • 2 min
  • Starting

Do you have social assistance benefits and want to start a business? Then you can turn to the municipality for help. This is regulated in the Decree on Social Assistance to the Self-Employed (Besluit bijstandsverlening zelfstandigen, Bbz). Read what help you can expect.

What do you need to do and arrange when starting a business?

Find out with the 'Personal to-do list' on Business.gov.nl. Answer the questions and see the steps that are important in your situation.

Create your personal list

What is Bbz?

Bbz is support from the municipality if you start a business while receiving social assistance benefits. You can also get this support when your unemployment benefit ends.

There are 3 ways municipalities can do this.

1. With a supplementary benefit

With Bbz, you can get a supplementary benefit for everyday expenses, such as groceries and rent. This benefit is a loan on which you do not pay interest. You will receive this benefit for a maximum of one year.

At the end of the year the municipality will check how much turnover you have made with your business. Did you earn less than expected? Then your income will be supplemented. If you had more turnover, you probably received too much benefit. You will then have to repay part of it. This does not have to be done in one go; you can agree on a payment schedule.

2. Working capital

A loan for a maximum amount of €45,483 (2024) for investments in your business, such as equipment, inventory, or stock. You need to pay interest on this loan.

3. Help during the preparation period

If you start a business from social assistance, you can often agree on a preparation period (in Dutch) with your municipality. This lasts up to a year. During this period you will receive coaching, retain your benefits, and you are freed from the obligation to seek work. Municipalities will often outsource the coaching to a specialised agency. Municipalities will cover the coaching costs for the first year after the start of your business. An example of support you might receive is learning how to write a business plan.

The type of support you receive may vary between municipalities. Most municipalities offer workshops, online courses, and guidance from an advisor. But your municipality may also not offer assistance during the preparation period.

How to apply for Bbz in the municipality where you live

Do you want to apply for Bbz? Write a business plan first. This plan will show whether or not your business has a good chance of succeeding. Next, you present your business plan to a bank. If the bank rejects your business plan and, thereby, your application for a loan, you can apply for Bbz. You do this at the municipality where you live.

The municipality will set the following requirements:

  • You are between 18 and 65 years of age
  • You spend at least 1225 hours per year on your business. That is about 25 hours per week
  • You earn enough money with your business to support yourself in the future.

Bbz for established entrepreneurs

You can also apply for Bbz if you already are an entrepreneur and are experiencing financial problems, for example due to illness. A condition is that your business is viable. There is also a scheme for entrepreneurs born before 1960 and a scheme for entrepreneurs who want to end their business. 

Bbz check for entrepreneurs

Use the Bbz check (in Dutch) to find out if you are eligible for Bbz to supplement your income. Contact your municipality to find out what the local conditions and procedures are.

 

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