Background information

Early Warning is a counselling programme founded in Denmark in 2007 with the goal to help small and medium-sized enterprises (SMEs) get through a situation of crisis in the best possible way, and start a new course of growth. SMEs in Denmark are defined as companies with fewer than 100 employees. All SMEs in economic crisis risking bankruptcy are eligible to receive support through the measure.

Content of measure

Early Warning is a collaboration between consultants, voluntary advisors and lawyers, each contributing with their unique knowledge. The objectives of Early Warning are:

• to help viable companies get over the crisis and get into a new course of growth;
• to close non-viable companies quickly and effectively, with the least possible loss for society, creditors and owners;
• to affect the general stigma in relation to being crisis-stricken in the direction of 'American conditions', where going bankrupt is less stigmatised;
• to give the owners their faith back and a future without a lifelong debt. They are offered the opportunity to re-establish themselves in a human manner, in some cases with the opportunity to start a new company within a foreseeable future.

Early Warning is financed by Danmarks Erhvervsfremmestyrelse [The Danish Executive Board for Business Development and Growth].

Since the beginning of the COVID-19 crisis the demand for Early Warning support increased significantly. The government has allocated an extra DKK 5 million to the scheme in order to secure the capacities and competences of Early Warning so that all companies facing a crisis that ask for support can access it without charge. 

Use of measure

Effect measurements have been made in 2015. The results show that Early Warning companies that survive are capable of maintaining or increasing their turnover, full-time equivalents and export. From 2010 - 2015, the allocation from the state to Early Warning has been DKK 7 million yearly.

• In 2021, 716 companies have received help from the Early Warning.
• In 2018-2019 around 600 companies have received help from Early Warning.
• In 2016-2017, around 600 companies per year have received help from Early Warning.
• In 2013-2015,1,334 new companies have asked for advice at Early Warning.

The strength of the scheme is to support company owners that can no longer overview the future situation of the company through proper treatment of the crisis.

Target groups

Workers	Businesses	Citizens
Employees in standard employment	SMEs	Does not apply to citizens

Actors and funding

Actors	Funding
Local / regional government	Local funds Regional funds Other

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	Unknown	Unknown
Form	Not applicable	Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

• Unknown
• Main level of involvement: Unknown

Involvement

Unknown

Views and reactions

Unknown

Sources

• 01 June 2007: Early warning: Gratis hjælp til virksomheder (earlywarning.dk)
• 01 June 2007: Early Warning: Vi deler vores viden (earlywarning.dk)
• 01 June 2007: Early Warning hjælper virksomheder igennem modgang (earlywarning.dk)
• 01 June 2007: Early Warning – hjælp til kriseramte virksomheder (erhvervsfremmebestyrelsen.dk)
• 05 October 2022: Status for Erhvervshusenes målopfyldelse (erhvervsstyrelsen.dk)