The 2024 crisis hit Brussels businesses hard, with an increase in bankruptcies and the loss of thousands of jobs. In response, Beci has rolled up its sleeves with CEd Relance, a centre that supports entrepreneurs in difficulty.
The year 2024 was particularly tough for entrepreneurship in Belgium. According to Statbel, in one year, 11,549 businesses had to cease operating, an increase of 7.2% compared with 2023. Brussels recorded a much sharper increase than the other regions of the country, with a 15% rise in bankruptcies compared with only 6 to 7% elsewhere. The sectors most affected remain the same: cafés, restaurants, caterers, but also construction, hairdressers and patisseries. The weight of production costs, particularly in the food sector, is having a particularly strong impact on retailers.
The crisis is hitting particularly hard, because in addition to the closures, 27,187 jobs have been lost as a result of bankruptcies. These figures highlight the urgent need for high-quality support for businesses in difficulty.
Back on track with CEd
Beci's response to this situation is the Centre for Enterprises in Difficulty (CEd Relance), supported by the Brussels region. ‘We don't provide support in the strict sense of the word, but we are on the front line,’ explains Eric Vanden Bemden, head of the Entrepreneurship community at Beci. CEd Relance puts entrepreneurs in touch with experts in law, accounting and taxation to provide them with practical advice. Every month, the workshops in the ‘Prevention/Recovery’ training cycle help them to anticipate and manage their financial situation as effectively as possible.
The figures speak for themselves: according to CEd Relance's annual activity report, more than 40% of requests concern cash flow problems, and a third concern the cessation or liquidation of a business. The remaining 27% of requests concern financial difficulties, including payment of VAT, social security contributions and other obligations, as well as a range of other issues.
Focus on prevention and training
CEd Relance is calling for better anticipation of difficulties, because acting in an emergency is not enough. ‘Too many companies wait until they are on the brink of the abyss to ask for help. Yet warning signals are visible long before that: late payments, tight cash flow, or difficulties in paying VAT or social security contributions,’ explains Eric. These signals indicate a situation that can still be rectified if early action is taken.
The business advisor also stresses the need for better training for entrepreneurs, to avoid costly mistakes from the very start of the business. ‘People have been encouraged to set up their own business without a solid foundation, like giving them a driving licence without taking an exam, he criticises. Since the abolition of compulsory management studies for entrepreneurs in the Brussels region, he believes that too many new businesses are being launched without sufficient preparation.
Entrepreneurship in Brussels
Eric Vanden Bemden remains optimistic about the future of entrepreneurship in Brussels, provided that more is done to prepare and support businesses. While the crisis of 2024 is severe, it should also be a wake-up call for a collective mobilisation in support of entrepreneurs. It is imperative that businesses have access to tools and a solid network. To this end, it calls on the Brussels-Capital Region to continue to support the CEd Relance.
Eric Vanden Bemden is head of the Entrepreneurship community and business advisor at Beci. Initially an entrepreneur, he joined the Brussels Chamber of Commerce in 2016. His career path led him to become involved in the recovery of companies in difficulty, before turning to supporting start-ups and businesses.
Contact: evb@beci.be