Rotterdam Business Case

Countries

The Netherlands

Policy areas

Organisation name City of Rotterdam

Contact person: Rob Gringhuis

r.gringhuis@rotterdam.nl

The ‘Rotterdam business case’ project wants to support entrepreneurs in financial difficulties, and it makes it possible thanks to the help of both students at the Rotterdam University of Applied Sciences and expert senior entrepreneurs. The aim is to increase the profitability and the sustainability of the entrepreneurs in difficulties.

Many entrepreneurs live in poverty; the Central Statistics Organisation of the Netherlands (CBS) calculated that 1 in 10 self-employed workers live in poverty. Experts have shown that, although economic development and social-medical factors (illness, divorce, etc.) may have an impact, a significant underlying cause is a lack of entrepreneurial skills and vision.

To tackle this problem, the concept of the Rotterdam business case was co-created in a partnership with the University of Applied Sciences in Rotterdam, Foundation Entrepreneur Soundboard (retired volunteer business executives) and the Municipality of Rotterdam. Since 2012, more than 1500 entrepreneurs have benefited from the specific services that the Rotterdam business case project offers. More than 50% of them have been saved from bankruptcy.

The triangle made by entrepreneur in difficulties, senior coach (former entrepreneur) and junior coach (student) creates a ‘win-win-win’ scenario. The senior coach is a sounding board, adviser and mentor, who will encourage the entrepreneur to regain control and overcome obstacles and challenges. Students from business economics, financial management or commercial management provide practical assistance such as sorting out the financial administration, cost-calculation, business plan or marketing plan. The students advance their practical experience, learning fundamental skills and developing coaching expertise. They are coached and closely supervised by the former business executives and have the opportunity to extend their network. In this process, the entrepreneur will have a better understanding of up-to-date business principles, gaining insight into a viable business restart. The concept has been called ‘Young and Old = Gold’.

The Rotterdam business case has been embedded by the government in the service lines for entrepreneurs and is now part of the broader city policies to fight poverty among the citizens. Other municipalities from the region have decided that this kind of support is needed in the whole of the region around Rotterdam. The municipalities are paying for the entrepreneurs in their territory who have been supported, so there is a direct connection between costs and results for the municipality. Decision-makers find the costs of the support very reasonable given the possible costs when an entrepreneur becomes bankrupt.

Thanks to the success of the project, the Rotterdam business case project became visible among other stakeholders and many organisations consulted it to take inspiration and replicate it.

In collaboration with the Ministry of Social Affairs and Employment and the Association of Netherlands Municipalities, the Rotterdam business case was introduced (together with a few other inspiring projects) as an innovative approach to other cities and regions in three so-called National Knowledge Sessions, and several regions have shown interest in setting up their own business case. For this purpose, a small national foundation has been established to assist other regions in setting up a pilot of their business case through a (free of charge) franchise model. So far, in other cities or regions a business case has been started, among which there are Friesland, Flevoland, Drenthe, The Hague and Eindhoven. Some Finnish cities have shown interest in starting their own projects and there have been international visits by government, universities or entrepreneur organisations from Ireland, Finland, Sweden, Germany, Italy and Belgium.

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