A committee debate on small and medium-sized enterprises (SMEs) was held in the House of Representatives on 20 March 2025. The debate was chaired by I.J.M. Michon-Derkzen (VVD) and attended by Minister D.S. Beljaarts of Economic Affairs. Each political group was given a maximum of five minutes' speaking time.
The debate focused on various topics of interest to SMEs and discuss the many challenges SMEs experience, such as financing problems, high regulatory burden and labour shortage.
Small and medium-sized enterprises (SMEs) are the backbone of the Dutch economy, accounting for 61% of added value and more than 70% of employment. Despite this important role, SMEs face major challenges. In this article, we discuss the biggest bottlenecks and how the Action Programme Minder Druk Met Regels can help entrepreneurs.
Many SMEs struggle to obtain loans from traditional banks. This is due to stricter capital requirements for banks, risk-averse behaviour of financial institutions and lack of clarity about available alternative financing. As a solution, the government is introducing the Finance Guide, a platform where entrepreneurs get information and advice on financing options.
Entrepreneurs have been complaining for years about an excess of rules and administrative burdens. The main pain points are: CO2 reporting obligations, complex labour legislation such as reintegration obligations for sick employees and the General Data Protection Regulation (AVG), which is difficult for small businesses to interpret. The new action programme focuses on reducing unnecessary regulations and simplifying existing ones.
SMEs face a shortage of qualified staff. The government is therefore betting on digitalisation and labour-saving technologies to increase productivity.
Many companies suffer from long payment terms, especially with larger customers and government agencies. The government monitors this and is working on stricter rules to protect SMEs.
Rising energy costs are a major challenge. The Energy Cost Contribution Scheme (TEK) offers support, but it is bureaucratic and difficult to access. Entrepreneurs expect faster and simpler procedures.
To noticeably reduce the regulatory burden, the government has launched the Action Programme Less Busy With Rules. This programme focuses on preventing new unnecessary regulations and removing existing obstacles. For instance, it will work on reducing the administrative burden in CO2 reporting and AVG obligations, simplifying regulations on personnel policy and working conditions and more transparent regulations whereby entrepreneurs spend less time on bureaucracy
In the first half of 2025, the first regulatory burden reductions in legislation are expected with a simplification of the Working Conditions Act and CO2 reports, and there will be further elaboration of the regulatory burden agenda. There will also be a review and extension of SME indicator surveys to new sectors. Further in 2025, we can expect proposals for further simplification of the AVG. In 2026 there will be a further embedding of regulatory burden assessment in new legislation and an optimisation of financing opportunities for SMEs with an evaluation of the effectiveness of previous regulatory burden measures.
SMEs play a crucial role in the Dutch economy but face major challenges. The Action programme Less Busy With Rules offers perspective, but the actual impact will only become clear in the coming years. Entrepreneurs should continue to actively participate in the dialogue with the government to further reduce the regulatory burden and improve financing opportunities. At the same time, the government must act faster and more decisively to ensure that the promised reduction in burdens is actually felt.
https://www.tweedekamer.nl/debat_en_vergadering/commissievergaderingen/details?id=2025A00512
