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initiative of Qredits
s
Small Business
gures 2021
Aruba, Bonaire, Curaçao
Summary: Small Business Index for Aruba,
Bonaire and Curaçao
Severely hit businesses expect a bright near future
Business owners are severely hit by Corona preventive closures. Just a third of all busi-
ness owners can pay their bills in time. Investments are at a low level. 62% of all business
owners have a (far) lower renumeration than in 2019. Nearly half of all business owners
earn less than social welfare allowances. This indicates their businesses are not viable in
the long run if sales or net margins do not change. Business owners endure above aver-
age stress, with a quarter of them at extreme levels.
Staff employment hardly decreased in Q2 2021. And Business Condence is high for Q3
2021. Not only sales are expected to rise considerably, but also investments and on time
payments.
The island of Bonaire deviates from the (is)lands of Aruba and Curaçao. While more busi-
ness owners are start-ups, self-employed, lower educated and male, they show highest
scores on the Continuity Index.
One explanation is that only Bonaire rm owners could tap into Dutch government
measures to postpone taxes and alleviate costs or reduced incomes.
Summary: Small Business Index for Aruba,
Bonaire and Curaçao
Overall start-ups and self-employed are as steady going as established rms and business
with employees. Counter intuitively rms with employees seem most vulnerable in times
of Corona.
The best option to increase continuity perceived by business owners is the provision of
fresh capital. Most strongly so in Curaçao.
#Small Business Index - is designed, funded and powered by Qredits and HU Research
Center for Digital Business & Media.
Recommendations
Consider extra support for rm owners in Aruba and Curacao by tax postponements and
similar grants as in the Netherland (NOW, TVL, TOZO and TONK).
These programs have shown to be effective especially so for business owners with em-
ployees.
Background of Small Business Index
There is no discussion on the importance of small business for economies. They re-
present in most countries more than 90% of all rms. Furthermore micro rms have
surpassed the results of small, medium-sized and even large corporates. Yet rms ha-
ving less than 5 employees are exempted from most surveys of the Central Bureau of
Statistics (CBS).
We all know rm size matters. Measures for companies with 10 – 250 employees are
not automatically effective or even counter-productive for start-ups, self-employed
and the smallest companies. The smaller a rm, the more vulnerable on the one
hand, due to limited resources and people. On the other hand, they are often the
most agile, exible and productive.
To ll this gap Qredits has developed in cooperation with HU Research Center for Di-
gital Business & Media the Small Business Index for Aruba, Bonaire & Curacao. Every
six months we monitor the business performances of the small business entrepreneurs
on the 3 islands.
Panel composition
The panel includes 925 business owners evenly distributed over the (is)lands of Ar-
uba, Bonaire and Curaçao. Business owners were invited digitally. The questionnaire
was completed in June and July 2021. Corona measures were strongly imposed on
the (is)lands, especially so by lockdowns in April, curfews and a strong limitations of
tourists and ight passengers until June 15th.
389 business owners participated, which leads to a very satisfactory response rate of
42%. Comparative analyses are based on lesser observation, as low as 318 observa-
tions, due to missing data. Because of the relatively low number of observation per
sector, the researchers abstained from sector comparisons. If difference between
any other characteristics are reported there are statistically signicant at a 5% level.
The characteristics of the respondents are:
• The majority (54%) of business owners are female. Less so in Bonaire (46%).
• 95% of the business owners have fewer than 10 employees.
• 55% are self-employed professionals, even more so on Bonaire (65%).
• 75% are start-ups (up to 5 years active), more so in Bonaire (86%).
• Business owners are 25 years to 55 years of age, mostly so 25 years - 40 years (46%).
Panel composition
• The best represented sectors (in total 54%) are automotive, transport, care and re-
tail/commerce.
• The entrepreneurs have completed MBO (52%) or a HBO/University education
(33%). On Bonaire the overall level of education is lower, with 17% HBO/University
education.
There is a possible bias in our results for business owners having been granted a loan
by Qredits ofces. In that sense they have approved and documented plans and a
nancial forecast on business activities.
Still, 41% of the business owner can’t provide for an annual report in business years of
2019 and 2020. And 29% can only provide an annual report over either 2019 or 2020.
Less so on Aruba, where only 24% of the business owners can’t provide any annual
reports over (one of) these years.
Sales index
Percentage of business owners with sales more than 11K Arubaanse
orijns/6000 US dollar/11K NAF per month.
• Sales in Aruba are at a higher level than in Bonaire and Curaçao.
• Start-ups have signicant lower sales than established rms.
• Self-employed have signicant lower sales than business owners
with employees.
100%
33
100%
38
100%
49
100%
34
100%
44
100%
20
100%
23
100%
11
-100%
-5
-100%
-4
100%
31
100%
52
-100%
57
100%
58
Business condence index
Percentage of business owners expecting an increase in sales mi-
nus percentage excepting a decrease in sales.
• There are no differences between start-up and established rms.
• There are no differences between self-employed and business
owners with employees.
100%
33
100%
38
100%
49
100%
34
100%
44
100%
20
100%
23
100%
11
-100%
-5
-100%
-4
100%
31
100%
52
-100%
57
100%
58
Pay on Time index
Percentage of business owners paying within the legal period after
billing.
Business owners in Curaçao deviate from Aruba and Bonaire, with
just 20% of them paying on time.
100%
33
100%
38
100%
49
100%
34
100%
44
100%
20
100%
23
100%
11
-100%
-5
-100%
-4
100%
31
100%
52
-100%
57
100%
58
Pay on Time
expectancy
+44%+44%
Percentage of business owners
expecting to pay quicker next
quarter.
Employment expectancy
Percentage of business owner that expects to increase employ-
ment minus percentages of decrease of employment.
100%
33
100%
38
100%
49
100%
34
100%
44
100%
20
100%
23
100%
11
-100%
-5
-100%
-4
100%
31
100%
52
-100%
57
100%
58
Innovation quote
Percentage of business owners investing 10% or more of sales in
their rm.
100%
33
100%
38
100%
49
100%
34
100%
44
100%
20
100%
23
100%
11
-100%
-5
-100%
-4
100%
31
100%
52
-100%
57
100%
58
Innovation
expectation
14%14%
Percentage of business owners that
will increase investments minus per-
centage decreasing investments in
the next quarter.
• There are no differences bet-
ween start-up and established
rms.
• There are no differences bet-
ween self-employed and business
owners with employees.
Top innovator quote
Percentage of business owners investing more than 25% of their sa-
les in their rm.
• Self-employed invest signicant less than business owners with
employees.
• Start-ups invest as much as established rms.
100%
33
100%
38
100%
49
100%
34
100%
44
100%
20
100%
23
100%
11
-100%
-5
-100%
-4
100%
31
100%
52
-100%
57
100%
58
Entrepreneurial Renumeration Index
Percentage business owners earning above legal minimum wages.
• 62% of all business owners have a (far) lower renumeration
than in 2019.
• Start-ups have signicant lower owner renumerations than
established rms.
• Renumeration of self-employed is signicant lower than of
business owners with employees.
100%
33
100%
38
100%
49
100%
34
100%
44
100%
20
100%
23
100%
11
-100%
-5
-100%
-4
100%
31
100%
52
-100%
57
100%
58
Entrepreneurial Poverty Index
Business owners earning less than social welfare allowance
Nearly half of all business owners earn less than social welfare
allowances. This indicates their business is not viable in the long
run if sales or net margins do not change.
100%
33
100%
38
100%
49
100%
34
100%
44
100%
20
100%
23
100%
11
-100%
-5
-100%
-4
100%
31
100%
52
-100%
57
100%
58
Stress level
Stress level (1 -25 low, 26 -50 average, 51 -75 above average,
76 – 100 high)
• 26% of all business owners have extreme stress levels between 76
– 100. Above averae and high stress levels for prolonged periods
decrease the quality of (nancial) decision making.
• There are no difference in stress levels of self-employed and busi-
ness owners with employees.
• Also start-ups are as stressed as established business owners.
100%
33
100%
38
100%
49
100%
34
100%
44
100%
20
100%
23
100%
11
-100%
-5
-100%
-4
100%
31
100%
52
-100%
57
100%
58
Continuity Index
Percentage business owners with sufcient nancial assets to continue
the business during a calendar year.
• On Bonaire the CI is considerably higher 0.50 compared to Aruba
(0.36 ) and Curaçao (0.27).
• The most chosen option to increase continuity (47%) is extra capital
provisions. By far the highest need is on Curaçao (60%).
• There are no difference in continuity of start-ups and established rms.
• Yet, counter intuitively, self-employed have a higher CI (0.43) than
business owner with employees (0,31).
100%
33
100%
38
100%
49
100%
34
100%
44
100%
20
100%
23
100%
11
-100%
-5
-100%
-4
100%
31
100%
52
-100%
57
100%
58
initiative of Qredits
s
For more information please send an email to:
Milagros Blanken-Rodriguez Navarro Raiska Herrera Oliver Vieira
Qredits Bonaire Qredits Curaçao Qredits Aruba
E: m.blanken@qredits.nl E: r.herrera@qredits.nl E: o.vieira@qredits.nl
Reproduction for personal use is only permitted with reference to the source: Van Teeffelen, L., Renssen. E. (2021),
Severely hit businesses expect bright future, SBI Q2 2021, Qredits/HU/ONL