The Netherlands is known to be a great destination for numerous icons, both geographical and economical. It has ranked highest globally in various indices such as best education systems, fastest internet infrastructure, and best healthcare.
Today, the Netherlands offers a friendly ecosystem for start-ups to thrive. This could be one of the reasons why the European Union ranked the Netherlands among the countries with the best start-up cities: Amsterdam. Businesses contribute greatly to the economy of the Netherlands and the history of the Netherlands as one of the leading economies has made it a great destination for start-ups.
Reasons Why the Netherlands is a Great Start-up Location
The following are a number of reasons why the Netherlands has become an asylum for those seeking to start their own businesses.
• Great Infrastructural Connectivity
The Netherlands is connected to other global economies by its great transportation network. Schiphol Airport in Amsterdam is one of the busiest airports in Europe. This facilitates a fast and efficient movement of investors in and out of the country. The Port of Rotterdam, being the largest in Europe, enhances easy transportation of bulky goods for investors. The transport system within the country is also good enough to facilitate day-to-day operations of any business. These transport systems such as trains, taxis, and other public transport means, make moving around the country easier and much faster.
E-commerce, innovations, and digital technologies are enhanced by fast internet speeds in the country. The robust growth and development of infrastructure in the Netherlands create a favourable ecosystem for new businesses.
• Friendly Immigration Legislations
The government of The Netherlands initiated a start-up-friendly program that supports entrepreneurship in a global sense. The Netherlands Start-up Visa is an opportunity meant to draw talented entrepreneurs from different parts of the world. This makes the Netherlands an attractive place for both international and local investors. Local start-ups can get a skilled workforce from non-EU nationals. International locals, on the other hand, can identify potential business niches within the Netherlands and go ahead with their start-up plans.
• The Dutch Capital; Amsterdam
Amsterdam could be one of the major reasons why the Netherlands is a great place for any start-up. This is because the city not only hosts world-class companies but also happens to be home to an affordable work environment.
Amsterdam is also home to the Dutch tech companies which are global giants when it comes to technology. Dutch tech companies are key economic drivers of Amsterdam with over 50,000 people employed in these companies. Amsterdam is a renowned nurturing hub for a number for many tech start-ups. Amsterdam houses some of the global tech giants such as Uber and Netflix.
• Entrepreneurial Culture
The Netherlands was once one of the world’s leading economies in the 17th Century. Amsterdam, the capital city of the Netherlands, was once considered to have been the wealthiest city globally. Tech businesses that pioneered the start-up scene in the early 90s are still predominantly the most successful businesses in the tech industry. Such businesses include TomTom and Booking.com.
Although the country’s global trade influence may have declined at some point, today, the government preserves the start-up culture through its support and emphasis on the need for start-ups.
• Highly Qualified Workforce
The higher education system of the Netherlands has been ranked as the fourth best globally. As a result, the country has been found to have some of the most skilled and talented workforce. Holland, precisely, happens to offer the country an educated workforce with a bigger percentage of the workforce having an apt background of at least two languages.
This labour force provides start-ups with an excellent opportunity to thrive. The country’s immigrant visa rallies skilled workforce from across the world building on the country’s labour force.
• International Business Society
The Dutch government and its people are known to have a drive towards encouraging international relations. The Dutch Golden Age has been a key influencer in making the Netherlands home for international businesses. This Golden Age was the period when the Netherlands was considered to be the world’s economic giant. In this spirit, legislation put in place in the country are all geared towards making the country an international business community.
Today, there are only a few governmental hindrances for non-native persons interested in starting businesses in the Netherlands. This makes the country an easy-to-penetrate hub for start-ups.
• Effective Business Communication
When it comes to the day-to-day practices of a business, effective communication is a necessity. When it comes to international business, which the Netherlands relies on, language is a major factor. Although Dutch is the Netherlands’ official language, the country is known for its mastery of other foreign languages. The Dutch people, especially the educated, are multinationals who can speak over two languages. English, German, French, and Spanish are some of the other languages that are commonly used in the Netherlands. In fact, about 90% of the residents in the Netherlands can speak fluent English and this makes communicating with international investors much easier.
International investors are able to relate with the people around here, precisely with the workforce, one would require for their start-up. Having an interpreter is very uncommon in the Netherlands. Contrary to the communication barriers investors experience in many countries, the Netherlands offers a great environment for business communication.
• The Start-up Delta Initiative
This was an initiative that was started to create a way into the Netherlands’ economy for all the start-ups. Start-up Delta was basically a creation of one economic hub that would bring start-ups and large businesses where financial and intellectual resources would be brought together for the development of the economy of the Netherlands. This came as good news to start-ups in the Netherlands since they would be able to interact with the government and other economic players. This economic ecosystem has made starting up a business much easier than it was for both local and international investors.
• The Quality of Life
The Netherlands not only has hospitable citizens but also happens to offer everyone an environment where one can balance work and other aspects of life. Moving to any city in the Netherlands for business will not demand that you leave other aspects such as family, love, and leisure. On the contrary, the country has a creative mix of cultural hubs, festivities, restaurants, cafes, bars, and retreat sites.
Recent reports from the United Nations have rated the Netherlands as one of the happiest countries globally, ranking at the fifth position in the UN’s Report on the Happiest Nations. The quality of Life in the country is among the factors considered when you want to settle in the Netherlands and start a business. It is obvious that such an environment makes the Netherlands a great place for start-ups.
• Tax Incentives
Many businesses in the Netherlands get tax incentive benefits such as tax reimbursements and tax deductions. Among the tax benefits businesses in the Netherlands include a corporate tax rate of 5% for research, development and innovation. These incentives give businesses the motivation to bring innovation to the economy of the Netherlands. Therefore, investors setting up start-ups will enjoy these tax incentives as a way of encouraging them to contribute more towards the growth of the economy of the Netherlands.
• Political Stability
Political stability is paramount for any business to thrive, and the Netherlands has a democratic and fully functional government system that creates a secure environment for business operations. Start-ups in the Netherlands enjoy a secure political climate to thrive.
