Rising Addiction Among Financially Struggling Small Business Owners

A recent survey by the Institute of Small and Medium-sized Enterprises (IMK) reveals that a rising number of small and medium-sized business owners facing financial problems are also dealing with addiction issues. The types of addictions range from alcohol and drugs to cryptocurrencies, but the most common by far is online gambling. According to the IMK, around 20 percent of the entrepreneurs surveyed are struggling with some form of addiction.

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Online Gambling Leading the Way

Nine out of fourteen IMK advisors confirmed that addiction problems are on the rise among the entrepreneurs they support. These advisors work with SME owners across more than half of the municipalities in the Netherlands. Entrepreneurs seeking help from local authorities are often referred to IMK for support, including an evaluation of whether their business remains viable.

 

The research indicates that online gambling is the most frequent issue, followed by alcohol. Since the legalization of online gambling in the Netherlands in October 2021, concerns about gambling addiction have intensified.

 

Government Measures and Revenue

In response to the growing issue, the Dutch government has implemented measures to reduce the risk of gambling addiction. These include a ban on gambling advertisements and the introduction of a monthly loss limit, requiring individuals who exceed it to demonstrate that they can spend responsibly. Despite these efforts, gambling-related tax revenue hit a record 1 billion euros last year, largely due to online platforms.

The findings highlight the urgent need for targeted support for small business owners who are facing not only economic difficulties but also personal challenges linked to addiction.


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