Questions and answers about part-time entrepreneurship

Starting as a hybrid entrepreneur has advantages and disadvantages. Most part-time entrepreneurs choose to start alongside their job because it offers a bit of security. However, there are tax disadvantages here.

1. What is part-time entrepreneurship?

As a part-time entrepreneur you start (or run) a business in addition to your permanent job. So you just keep working for your boss (sometimes even full time), while you spend a large part of your free hours on business operations.

It is also important for a part-time entrepreneur to get started well prepared. It will save you a lot of stress and extra working hours later if you do all the necessary preparatory work prior to the establishment.

Start a checklist next to your company

As a part-time starter you have the same to-dos as other entrepreneurs:

  • So write a business plan
  • Register with the Chamber of Commerce
  • Research the market
  • Have a website built or do it yourself
  • Use your  network to bring the brand awareness of your products and / or services to the attention of the relevant target group .

Consult with your employer

Finally, contact with your employer or direct supervisor plays an essential role. It is important that you discuss your business plans with him or her before you actually register the company with the Chamber of Commerce (KvK) .

Tip: agreements about this have often already been included in your employment contract. Read about the possible consequences of a non- competition clause.

2. What are the pros and cons?

Benefits part-time entrepreneurship

A big advantage of part-time entrepreneurship is that you usually run less financial risk in this way. After all, you keep a regular income.

If you have less or no income at all during a certain period – which is really not unusual for a startup – you still have an income as a hybrid starter.

A financial safety net also reduces the pressure to be successful with your business quickly. Instead, you can take your time building a stable business. This reduces the risk of rush work and other known beginner mistakes .

Disadvantages doing part-time business

There are of course also disadvantages. For example, you always have to take your employer into account. If your boss doesn’t like your plans, for example because you want to set up a company in a similar sector, part-time entrepreneurship is often no longer an option.

You will then either have to resign to try it out as a full-time entrepreneur, or say goodbye to your entrepreneurial dream for the time being.

The fact that your employer is always looking over your shoulder with an oblique eye can also be oppressive and limit your business opportunities. In addition, you have little time outside of work. Overload is then lurking.

3. How does the tax authorities see it?

They do not know ‘part-time entrepreneurship’ at the tax authorities. In their view, you are an entrepreneur for income tax purposes or you have an ‘income from other work’.

Are you seen as an entrepreneur for income tax purposes?

Only then are you entitled to a known tax benefit: the self-employed and start-up allowance . This means that you have to pay less tax and can deduct a fixed amount of 7,030 euros (2020) for the self-employed person’s tax relief.

The benefit of the small business scheme (kor) may also apply to your situation.

4. What are the points of attention for a part-time entrepreneur?

The term part-time entrepreneurship indicates that you ‘add your company’, in other words: in addition to your (full-time) paid job. In practice, however, you will notice that managing a company will quickly take more time than you calculated in advance. 

In principle, this does not have to be a problem; it is of course positive if you are getting busier, because that means that your business is running well. But you must make clear agreements about this with your employer and with any family and circle of acquaintances.

There is a chance that at certain times you will have less time for a brainstorming session with colleagues, your regular running group or to walk the dog.

If you and your loved ones are flexible and can live with such ‘sacrifices’, neither your permanent job nor your part-time business will suffer.