Two-thirds of new businesses consider the environmental implications of their business in important decisions
This is one of the key results of the Global Entrepreneurship Monitor (GEM).
More than two-thirds of new businesses (actively involved in starting a business or running a young business) always take social implications, such as access to education, health and safety in the workplace and inclusive entrepreneurship, into account when making important decisions about the future of the enterprise. A similar share always considers the environmental implications, such as maintaining green areas, reducing pollutant emissions, selective waste collection, conscious water consumption and fuel choice. These entrepreneurs can therefore make an important contribution to achieving the Sustainable Development Goals (SDGs). In terms of social implications, the Netherlands scores reasonably in line with other European countries, but in terms of environmental implications, the Netherlands lags somewhat behind.
In 2022 (June/July), 12.5% of the working population was actively involved in starting a business or running an young business (Total early-stage Entrepreneurial Activity, TEA). This percentage is slowly decreasing towards pre-corona levels (2019: 10.4% and 2020: 11.5%).
The Netherlands is one of the top 5 of the European countries participating in the GEM. Only Latvia, Croatia, the United Kingdom, and Lithuania score higher. In addition to the favourable entrepreneurship ecosystem, the relatively high number of self-employed people may be one of the explanatory factors for the high TEA in the Netherlands.
In terms of specific starting motivations, the Netherlands scores relatively higher regarding 'making a difference in the world' and lower on 'earning a living because jobs are scarce'. 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. This last category most likely concerns self-employed persons. The expected number of jobs created is slightly lower than the average in the 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 annually assesses the entrepeneurship ecosystem (the National Entrepreneurship Context Index (NECI)). The Dutch system still ranks number 1 of 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.
Global Entrepreneurship Monitor (GEM)
The GEM contains data on the development of entrepreneurship over the past 22 years. Since 2002, Panteia has participated in the Global Entrepreneurship Monitor (GEM). Thanks to the 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. In 2022, 51 countries participated, including 21 European countries. The information is collected by a survey of the adult population (Adult Population Survey) and a survey of national experts (National Expert Survey).
Read the entire report here or view the infographic.
If you are interested in previous years' reports, please go to: https://panteia.nl/kennisgebied/maatschappij-economie/bedrijfsleven-duurzaam-groei/de-global-entrepreneurship-monitor-gem/
