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For many, the government’s support package for the country’s entrepreneurs has been the salvation during the crown year. Crisis-affected businesses have taken advantage of measures such as short-term work and reduced employer contributions and lost much of their revenue as a result of the pandemic.
But there are differences in which entrepreneurs can use the different financial aids, depending on the form of their company.
Since the entrepreneurs who run a limited company are employees of their own company, they have been able to say goodbye during the crisis. That opportunity has not existed for those who have a sole proprietorship, because they do not have a job.
Daniel Hallgren has his business as a sole proprietor and criticizes the fact that he does not know the crown measures in the same way as the others.
Photo: Nicklas Thegerström
Daniel Hallgren conducts the interior design and concept company Each small detailing agency, with a single owner as a form of business. He’s disappointed that he couldn’t wear crown measurements in the same way as others.
– When you started discussing about a billion in support at press conferences this spring, I thought, like probably all other entrepreneurs, that there might be a chance to survive this. But then it turned out that it didn’t apply to sole proprietorships, he says.
During the summer, when the company’s allowances and income largely disappeared, he laid off his staff. Although you had the right to request assistance for sales and conversion (see the data box), you think it was not enough for all costs. Besides, it was too late.
– Limited companies had layoff opportunities a couple of weeks after the crisis. Sales support arrived eight months later, only then were we able to apply. Many had already gone bankrupt by that time, says Daniel Hallgren.
He continues.
– This is a great discrimination, when you have an individual company, you have committed your whole life. I must, like a limited partnership, be able to request that my tax money that goes to support limited partnerships also go to partnerships that are not limited partnerships.
When about a billion support started being discussed at press conferences this spring, I thought, as probably all other entrepreneurs, that there might be a chance to survive this. But then it turned out that it didn’t apply to sole proprietorships.
The Swedish Small Business Association During the year it has had a dialogue with entrepreneurs who have a sole owner as a form of company and they agree with the criticisms. According to Erik Sjölander, the union’s corporate policy spokesman, many feel they have been taken off priority on the issue of crown support.
– It is strange when it is necessary to distinguish in this way different forms of company, in this case individual companies and mercantile companies have gotten into trouble. It is completely absurd that there is so little understanding, says Erik Sjölander.
– Those who run a sole proprietorship also have their personal finances mixed with those of the company, and generally have small margins and low profits. They were not able to apply for money until November and many have been severely affected, he continues.
Minister of Commerce and Industry Ibrahim Baylan You think you have a great understanding that people are frustrated. Despite the fact that the crisis poses great problems for entrepreneurs, he wants to emphasize that during the year there was also support for individual entrepreneurs, including relief in the unemployment insurance fund for those who put the company in dormancy, reduced deductibles and adjustment aid .
– But we also know that costs look different, we know, for example, that sole proprietorships do not have as many fixed costs as limited partnerships. But that does not mean that there are no problems.
Therefore, sales support was introduced, which is specifically aimed at those with sole proprietorships.
– Short-term support is there so employees don’t have to get rid of work. Sole traders, by definition, are not employed, so we have sales support that is specifically targeted at individual merchants. We have also expanded it because we are still in a difficult situation, he says.
Minister of Commerce and Industry Ibrahim Baylan.
Photo: Karin Wesslén / TT
Layoff support came in the spring, while sole trader sales support came in November. Do you understand that people think it is an unfair situation?
– In the spring, it was very important to implement the measures that were already prepared, such as short-term support, as soon as possible. The crisis occurred at a breakneck pace and we needed to find measures to prevent people from losing their jobs. Since then, we have gradually worked to find more support, says Ibrahim Baylan.
He continues:
We try as much as possible to help in this difficult situation. I hope and believe that with these fairly large resources made available through taxpayers, we can mitigate the effects on employment and entrepreneurship. But I have to be honest and say that there will also be negative consequences.
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