The entrepreneurial landscape in Belgium, as in much of Europe, faces significant challenges and opportunities. In light of the current economic environment, fostering entrepreneurship is crucial for economic revitalization and innovation. However, entrepreneurs often find themselves at a disadvantage compared to salaried employees regarding social protections and fiscal burdens.
In Belgium, business taxation is notably high, with rates ranging between 50% and 54%, which can be daunting for new entrepreneurs who risk their capital without the safety nets available to traditional employees.
This high taxation rate is paired with limited social securities for business owners, a situation that many argue needs reform to make entrepreneurship more appealing and viable.
The OECD’s 2023 report on SMEs and entrepreneurship highlights that while small and medium enterprises (SMEs) have been somewhat shielded from the economic impacts of the COVID-19 pandemic through government support, they continue to face severe challenges such as high inflation, labor shortages, and significant trade barriers.
These factors contribute to a difficult environment for SMEs, which are crucial for economic diversity and job creation.
As a lead candidate for the European Parliament with the Voor U party, Marta Barandiy’s platform revolves around enhancing the support structures for entrepreneurship in Belgium and across Europe. For years, Marta has been a staunch advocate for entrepreneurship and has emphasized her commitment to fostering a conducive environment for entrepreneurs and small business owners. Today, this is a part of her political and election campaign.
Marta Barandiy’s political agenda includes implementing policies that will ensure better support for entrepreneurship. Her campaign highlights the need for reforms that provide entrepreneurs with social protections akin to those enjoyed by employees. Her campaign highlights the necessity of creating an ecosystem where entrepreneurs are encouraged through fiscal incentives and supported through comprehensive social security systems that include pensions and vacation rights.
To stimulate entrepreneurship effectively, several policy changes should be considered:
- Tax Relief Initiatives: Introducing graduated tax relief for new startups could alleviate the initial financial burden, allowing entrepreneurs to establish a solid customer base and cash flow before facing full taxation rates.
- Equal Social Securities: Offering social benefits similar to those available to employees, such as pension rights, healthcare, and unemployment benefits, could reduce the personal risks entrepreneurs face.
- Encouragement of Hybrid Models: Encouraging flexible working models where individuals can maintain their jobs while setting up businesses could foster a more vibrant entrepreneurial ecosystem. This would not only ensure a safety net but also enhance the sharing of knowledge and innovation between established companies and new ventures.
- Supportive Regulatory Environment: Simplifying the administrative process for starting and running a business would make entrepreneurship more accessible to a broader range of people, including those from underrepresented groups.
Addressing these issues could lead to a more dynamic and competitive business environment in Belgium and Europe at large, encouraging more individuals to embark on entrepreneurial ventures with confidence that they have support structures similar to those in employment. The aim should be to balance the protection and incentives between employees and entrepreneurs to foster a thriving, innovative economy.
To ensure that policies adapt to the evolving needs of entrepreneurs, several strategic measures could be implemented:
- Tax Incentives and Reductions: Introducing targeted tax cuts for small businesses, particularly for those structured as “pass-through” entities, could stimulate growth. Many small firms, especially those owned by underrepresented groups, may benefit less from broad tax cuts, suggesting the need for more finely-tuned fiscal policies that directly benefit these enterprises.
- Enhanced Access to Capital: Financial support mechanisms are crucial. These could include government-backed loans, grants, and venture capital investments tailored to new and small businesses. Ensuring that entrepreneurs have access to diverse funding sources can help them scale their operations and navigate economic challenges.
- Regulatory Reforms: Simplifying the legal and regulatory processes for starting and running a business can significantly lower the barriers for new entrants. This includes streamlining procedures and possibly offering a ‘regulatory sandbox’ environment where new types of businesses can test and adapt before fully committing to all regulatory requirements.
- Education and Training Programs: Integrating entrepreneurship education into formal schooling systems and offering continuous learning and development programs can equip aspiring entrepreneurs with the necessary skills. This not only fosters a culture of innovation but also prepares individuals to manage and grow their businesses successfully.
- Support for Digital Transformation: As the digital economy expands, policies should support businesses’ digital transformation. This includes providing access to digital tools, services, and infrastructure, which are essential for businesses to compete in a global marketplace.
- Inclusive Entrepreneurship Programs: Develop initiatives specifically designed to reduce the gaps in entrepreneurship rates among women, immigrants, and other underrepresented groups. These programs should address specific barriers these groups face, providing tailored support that enables them to start and sustain businesses.
- Feedback and Adjustment Mechanisms: Implementing systems to regularly assess the impact of entrepreneurship policies and adapt them based on performance measured against well-defined KPIs (Key Performance Indicators) can ensure that the policies remain effective and relevant over time.
Marta actively invites entrepreneurs and small business owners to engage in dialogue about their challenges and needs, as well as their success and failure stories. This dialogue aims to understand better how government policies can either support or hinder their efforts to contribute to economic growth and innovation.
Her campaign reflects a broader vision that not only advocates for immediate changes but also for a sustainable policy environment that fosters long-term entrepreneurial success. Marta Barandiy’s dedication to these issues is part of a larger effort to ensure that European policies reflect the dynamic needs of modern businesses and the evolving labor market
References:
- Economy and Finance. 2023 Country Report – Belgium
- OECD.org – OECD. OECD SME and Entrepreneurship Outlook 2023
- The Aspen Institute. Creating Effective Policies to Support Entrepreneurship
- OECD. The Missing Entrepreneurs 2023. Policies for inclusive entrepreneurship and self-employment
- UNCTAD. Entrepreneurship Policy Framework and Implementation Guidance
- emerald. Digital transformation policies to develop an effective startup ecosystem: the case of Barcelona
- OECD. International Compendium of Entrepreneurship Policies
