Tips for future student entrepreneurs

Since the entry into force of the new student-entrepreneur status at the beginning of 2017, the combination of studies and entrepreneurship has continued to gain in popularity. The support of Unizo (Dutch-speaking Union of Self-employed Entrepreneurs) and universities in the transition to entrepreneurship has also had a stimulating effect.

Who does this concern?

Student entrepreneurs are young people aged 18 to 25 who are self-employed while studying at an educational institution in Belgium or abroad in order to obtain a diploma recognised by a competent authority in Belgium.[1] To be eligible for student-entrepreneur status, they must submit a declaration to the social insurance fund which they are registered with as a self-employed person, certifying that they attend courses on a regular basis. At the end of June 2018, there were 6,163 student entrepreneurs registered at the National Institute for the Social Security of the Self-employed.

Thanks to Unizo

This success is probably linked to the new status which came into force on 1 January 2017 on the basis of a proposal by Unizo (Dutch-speaking Union of Independent Entrepreneurs). From that date, the self-employed student was no longer considered as a person who is self-employed as a supplementary profession, and a new system of advantageous social security contributions was introduced. Since then, student-entrepreneurs have their own health benefits when their income exceeds 6,775.25 euros. If they earn less, they do not pay social security contributions and remain dependent on their parents. As for the social contributions, student-entrepreneurs pay 20.05% up to 13,550.50 euros; above this income ceiling, they pay as much as a person who is self-employed as a main profession.[2]

Family allowance

Student entrepreneurs can also maintain their right to family allowance as long as their professional activity remains limited. In other words, they can only work 240 hours in the first, second and fourth quarters, while in the third quarter an unlimited number of hours is allowed.

Success stories

In order to motivate young entrepreneurs, every year, Unizo elects the student-entrepreneur of the year. In 2018, the Ghent company Boogoo won the prize, with its cocktail ice creams flavoured with a slight touch of alcohol. 

Pieter Steger (aged 24), a student in his final year of a master's degree in commercial science at KULeuven and manager of SDS - Steger Digital Services, illustrates that studies and entrepreneurship go hand in hand: "I had long been interested in the digital sector and wanted to supplement purely theoretical university knowledge with practical experience. After a cost analysis, I searched through my family and friends for companies I could work with, and everything went very well. I strongly recommend entrepreneurship to everyone, because you learn more in one year than in four years of study."

How can you get started?

How do you start your own business? Many websites are available. Here and here you will find useful information on legal obligations, social security contributions, tax consequences and your rights. The various universities also give a helping hand to student-entrepreneurs by offering them personalised academic support and a follow-up of their professional project. Université de Liège, for example, provides the Quality of Life Service for Students - Athletes, Artists, Entrepreneurs, which enables top athletes, professional artists and students wishing to create their own business to reconcile their project and their studies as best as possible. At ULB, a Start Lab (https://startlab.be/contact/)was created, dedicated to all student entrepreneurs in the Brussels-Capital Region. 

Good idea

In addition to having a good idea, it is important to simply take the leap. Be aware that entrepreneurship is a risk and will take up a lot of your time. Pieter Stegers' advice: "Above all, get help to ensure that everything is in order as regards tax and administrative obligations (VAT returns, etc.) and that you do not omit anything. Get enough information and use your network or other entrepreneurs. One last tip: make sure you consult the most recent data and figures when searching for information online."

Well insured

As a student-entrepreneur, you are required to take out professional liability insurance, which covers the consequences of unintentional harm you could cause to a client. If you own your building as a student entrepreneur, a fire insurance policy covering damage due to fire, storm, water damage and vandalism is essential. You can also add content insurance or theft coverage to this insurance.

In addition, there are different types of non-compulsory insurance, such as insurance which reimburses all or part of your hospitalisation costs (hospitalisation insurance) or civil liability insurance. The latter is useful in the event that you cause unintentional harm to a third party. Note that this does not include clients. 

Xanthe Blankert-Scheenjes, Senior Segment Marketing Expert, says: "If you already know that you will remain self-employed as a main profession after your studies, you can start building up a pension savings immediately. In the long term, you can combine it with the tax-efficient Private Supplementary Pension for the Self-Employed (PSPS) or with an Individual Pension Agreement (IPA) for companies. Check with your insurance broker in time to learn about the possibilities and which ones are useful for you. He or she will be happy to help you."

[1]You must be registered for a minimum of 27 credits or 17 hours of classes per week and be committed to attending classes regularly.

[2]These figures refer to 2018.