The leaders of the Dutch business community met today at the Catshuis to discuss the Dutch business climate with Prime Minister Mark Rutte and seven ministers. VNO-NCW, among others, have expressed concern about this, while things are not going too badly, thinks strategy and innovation professor Henk Volberda at the University of Amsterdam.
Volberda, who has been researching the Dutch business climate for years, thinks there is a negative sentiment, but according to him things are not bad. “We did some research on this last year,” Volberda says. “We did this with the Dutch Innovation Observatory, in which 700 companies took part, who believe that our business climate is reasonably good.”
According to Volberda, companies gave the Dutch business climate a score of 6.9. “So this is actually a 7-,” she says. ‘They are very satisfied with the infrastructure, the presence of talent, the proximity to customers and the quality of services and life. That quality of life is highly valued.’
Points of concern
Even if the 6.9 sounds high, there are points of concern, according to Volberda. This includes a worsening tax climate, complaints about the amount of legislation that needs to be complied with, and companies saying that cohesion in Dutch society has declined. “There’s more polarization and that leads to more uncertainty,” she says. “And that makes the business climate in the Netherlands less attractive.”
But, as Volberda qualifies the research, the Innovation Monitor focused exclusively on companies that have already established themselves in the Netherlands. “But if you look at the entry of new companies, there are quite a few companies coming to the Netherlands,” she continues. ‘Amsterdam is still attractive, and that has everything to do with the effects of Brexit. But you have to realize that a business climate is not something static, other countries are also busy attracting companies. So we have to make sure that we keep the good companies and that we are able to attract new sustainable and green companies.’
‘Free fall’
Despite the 6.9, the VNO-NCW employers’ association says the business climate has “gone into free fall,” but that qualification is unwarranted, according to economics professor Steven Brakman of the University of Groningen. “These are heavy words and they are understandable,” he says. ‘After all, it’s an interest group for employers, so they have to be strong.’
Brakman calls the corporate climate a concept of container, because the content is made up of different elements. “The quality of the workforce has already been talked about, but also things like infrastructure and taxes,” he continues. Employers point this out often. But environmental legislation can also cause problems for companies, so it’s a concept where many elements play a role.’
‘setback’
But, Brakman frankly admits, the 6.9 is still disappointing. ‘I understand companies, because they think everything can be improved. And so are taxes,” he explains. ‘But if you look at the Dutch business climate in general, it’s actually very good. The connections with the hinterland are good, the working population is well educated and what is also important is that we have a good legal system. All these factors contribute to this, and the problems we have are mainly related to housing, etc. After all, the business climate for companies is related to the business climate for employees.’
Source: BNR
Fernando Dowling is an author and political journalist who writes for 24 News Globe. He has a deep understanding of the political landscape and a passion for analyzing the latest political trends and news.
