Shortly after the first Covid-19 case in Belgium, the federal and Flemish government introduced safety and support measures to better manage the impact of the crisis. Now, one and a half year into the pandemic, Flanders Innovation & Entrepreneurship (VLAIO), the agency responsible for companies\u2019 support, requested an evaluation of the implemented support measures. <\/p>\n\n\n\n
The key question for VLAIO was: \u201cWhat would have happened in case the Flemish government didn\u2019t support companies during the crisis?\u201d<\/em><\/p>\n\n\n\n We found that the support for these companies and sectors was clearly effective, and the Flemish government was able to reach companies and sectors that were hit the hardest by the crisis. Analyses showed that without the support <\/p>\n\n\n\n At the same time, the largest differences between companies and sectors as the result of measures, have been observed at meso and micro levels. As example, for the sectors, which have been hit the hardest, the support has managed to protect only partially the liquidity, raising questions about the long-term effects of the Covid-19 pandemic. Also limiting the dependence on company funds (buffers) was only partially successful, likewise with protection of the financial stability (outcome level). <\/p>\n\n\n\n Overall, the type of support instruments, which was mainly used, was costs coverage, which helped to maintain essential payments (personnel, suppliers, etc.) and prevented bankruptcies. Through this, at outcome level, the companies were able to maintain business & supply chains and jobs. <\/p>\n\n\n\n