Grippy Advisory Tool Viability Enterprise

Municipality of Rotterdam

An application that helps staff at the Regional Self-Employment Department determine whether a business is viable.

Last change on 5th of September 2024, at 13:06 (CET) | Publication Standard 1.0

• Publication category: Impactful algorithms
• Impact assessment: IAMA
• Status: In use

General information

Theme

Social Security

Begin date

10-2023

Contact information

[e-mail]

Link to publication website

https://www.gripvol.nl/de-gripvol-adviesrobot/

Link to source registration

https://algoritmeregister.rotterdam.nl/p/Onzealgoritmes/53761720551927725

Responsible use

Goal and impact

PURPOSE: The purpose of the advisory tool Gripvol is to achieve faster decision-making and cost reduction. This is achieved because the research does not have to be outsourced to a business consultancy firm. With each consultant using the same tool, a uniform assessment of the company's viability takes place.

IMPACT: Gripvol helps structure and support the assessment with financial calculations and industry information. Staff discuss the advice from the tool with the entrepreneur and weigh up the advice in the overall assessment of the Bbz or Ioaz application.

Considerations

Advantages: speed of decision, cost reduction compared to outsourcing a viability study, uniformity in self-assessing viability

Disadvantages: an externally conducted viability study may be perceived by a business owner as a better quality and more independent report because it involves a specialised agency.... If in doubt about the usefulness of the advice from Gripvol, an employee may still seek external advice.

Human intervention

An employee makes the decision. A mandated employee may take the decision himself. Control takes place through KIC. A non-mandated employee submits the proposal to the quality officer.

Risk management

Every quarter, the latest industry information is checked, however, this may already be outdated. Information about the company and impact are (reasoned) estimates by the consultant.

Legal basis

Implementation of the Besluit bijstandverlening zelfstandigen (Bbz) and the Wet inkomensvoorziening oudere en gedeeltelijk arbeidsongeschikte voormalige zelfstandigen (Ioaz) (Income Support for Older and Partially Disabled Former Self-Employed Persons Act)

Links to legal bases

• BBZ: https://wetten.overheid.nl/BWBR0015711/2023-01-01/0
• IOAZ: https://wetten.overheid.nl/BWBR0004163/2023-07-01/0

Impact assessment

Impact Assessment Mensenrechten en Algoritmes (IAMA)

Operations

Data

Company and customer details

Links to data sources

Invoer in Gripvol

Technical design

To assess the viability of a business, an employee can use the Gripvol advice tool. The information the client provides about his enterprise is entered in the Gripvol advice tool. This information comes from the application form Bbz/Ioaz, submitted annual accounts / income tax returns, a (possible) relaunch plan and the entrepreneur's explanation in the interview.

The advice tool Gripvol also provides branch information and branch developments (turnover developments, sentiment, relevant key figures, trends and developments) that the employee can use when assessing the viability of the business.

The data entered in the advice tool Gripvol:

• Workflow number (process number in Exact Synergy Enterprise).
• Information about the company (starter or established, legal form, location of establishment, SBI number, industry).
• Private withdrawals (e.g. rent, gas/water/electricity, medical expenses, allowances, other income).
• Private assets (home, car, pension provision, mortgage, revolving credit).
• Business assets (debtors, cash).
• Annual figures (turnover, purchasing costs, operating costs, operating result) for the last 3 years.

Based on the information entered, Gripvol prepares a task-setting budget and provides an opinion on the viability of the business. A task-setting budget calculates the minimum turnover the entrepreneur needs to achieve to meet all his/her (business and personal) expenses and to meet living expenses. The advice from Gripvol is based on historical figures, industry prospects and market opportunities for the entrepreneur.

Based partly on the report from Gripvol, the self-employed consultant assesses whether the entrepreneur is able to realise this task-setting budget. The outcome of the assessment is reflected in its own report.

External provider

Gripvol Technologie B.V.