Two-thirds of new businesses consider the environmental implications of their business in important decisions. This is one of the key results of the latest Global Entrepreneurship Monitor (GEM) Netherlands National Report.
Environmental implications include access to education, health and safety in the workplace, and inclusive entrepreneurship. A similar share always consider environmental implications, such as maintaining green areas, reducing pollutant emissions, selective waste collection, conscious water consumption and fuel choice.
“These entrepreneurs are able to make important contributions to achieving the UN Sustainable Development Goals (SDGs),” said the report authors: Jacqueline Snijders, Paul van der Zeijden and Jan de Kok.
In terms of social implications, the Netherlands scores in line with other European countries. However, the Netherlands lags somewhat behind in the area of environmental implications.
In 2022, 12.5% of the working population was actively involved in starting a business or running a young business (Total early-stage Entrepreneurial Activity, TEA). By comparison, in 2019 this figure was at 10.4% and in 2020 11.5%. The Netherlands is one of the top five European countries participating in GEM. Only Latvia, Croatia, the United Kingdom and Lithuania score higher.
In terms of specific starting motivations, the Netherlands scores relatively high regarding 'making a difference in the world' and lower on 'earning a living because jobs are scarce'. According to the authors, the latter might partly be explained by the current tight labour market and government policies aimed at making self-employment less attractive.
The TEA is lower as age increases. 18.4% of the population in the age category 18 to 24 years is actively involved in starting a business or running a young enterprise. This also applies to 17.2% of people between 25 and 34 years of age and to 6% in the oldest age category (55 to 64 years).
A third (32%) of new businesses expect to employ 1-5 people in the next five years and 20% expect to employ 6 or more people. Nearly half (48%) do not expect to employ any new people. The expected number of jobs created is slightly lower than the average among GEM participating European countries. More than a third (37%) of new businesses plan to export. This is slightly higher than the average in the participating European countries and almost the same as in 2021.
The GEM National Entrepreneurship Context Index (NECI) assesses the entrepreneurial ecosystem of each country by assessing the following Entrepreneurship Framework Conditions (EFCs):
- Entrepreneurial Finance - Are there sufficient funds for new startups?
- Ease of Access to Entrepreneurial Finance and are those funds easy to access?
- Government Policy: Support and Relevance - Do they promote and support startups?
- Government Policy: Taxes and Bureaucracy or are new businesses burdened?
- Government Entrepreneurial Programs - Are quality support programs available?
- Entrepreneurial Education at School - Do schools introduce entrepreneurship ideas?
- Entrepreneurial Education Post-School - Do colleges offer courses in starting a business?
- Research and Development Transfers - Can research be translated into new businesses?
- Commercial and Professional Infrastructure Are these sufficient and affordable?
- Ease of Entry: Market Dynamics - Are markets free, open and growing?
- Ease of Entry: Burdens and Regulation - Do regulations encourage or restrict entry?
- Physical Infrastructure - Is this sufficient and affordable?
The Netherlands ranks number one among all participating European countries. According to a panel of Dutch entrepreneurship experts, the Netherlands mainly performs better on 'education (primary and secondary)', 'cultural and social norms', 'entry options: barriers and regulation' and 'availability of financing for entrepreneurs'. At a global level, the Netherlands ranks number 5 after the United Arab Emirates, Saudi Arabia, Taiwan and India.
Panteia, a leading data-driven research and consulting organization, has been the partner of GEM Netherlands since 2002.
The authors concluded: “Thanks to GEM, it is possible to measure the level and characteristics of entrepreneurship activities and the entrepreneurship ecosystem over time, as well as to compare them across all participating countries.”
Access the full report. Previous years reports can be reviewed here.