Dutch business leaders are repelled due to narrow-minded attitudes, as per the caution issued by Bunq CEO.
The Netherlands, known for its tulip fields and windmills, is now making a name for itself in the tech industry. However, a growing number of Dutch entrepreneurs and tech companies are considering relocating, a trend driven by a broader reshaping of the tech labor market and evolving business environment factors.
According to a survey last year, almost one in five Dutch entrepreneurs considered relocating, up from nearly one in eight in 2023. This trend is not limited to small businesses; 24% of large companies in the Netherlands are contemplating moves abroad, nearly double the share from the year before. One of the country's biggest tech scaleups, software unicorn Bird, announced plans to shift operations out of the Netherlands due to over-regulation and a bad climate for tech businesses.
ASML, the largest company in the Netherlands, has threatened to move abroad due to the country's hardening stance on migrants. Ali Niknam, the founder and CEO of Dutch fintech Bunq, one of Europe's biggest neobanks, shares similar concerns. He believes the Netherlands is abandoning its internationalist roots, which is damaging its tech ecosystem and chasing talent away.
Niknam, who is set to speak at a conference on June 20 in Amsterdam, calls the support for entrepreneurship in the Netherlands "among the worst" he's seen. However, he still has faith in the country's talent pool. Bunq, which became the first Dutch company in 35 years to obtain a greenfield banking license in 2015, grew into Europe's second-largest neobank after Revolut, achieving profitability.
The tech ecosystem in the Netherlands offers several advantages. The Dutch digital transformation market is rapidly expanding, supported by significant government investment, public-private partnerships, and regional innovation clusters. The country's digital transformation market is expected to reach €22 billion by 2025, according to a recent report.
The Netherlands offers a notably balanced workweek (32 hours vs. up to 70 in Silicon Valley), excellent healthcare, and robust social safety nets, drawing professionals and entrepreneurs tired of high-pressure environments. The country's growing data center infrastructure, increased investments, and new entrants in the Dutch data center market enhance the IT infrastructure capacity and reliability, crucial for tech companies focused on cloud, AI, and big data applications.
Secondary cities in the Netherlands are experiencing housing price increases and booming coworking markets linked to the tech talent influx, reflecting growing economic activity and livability. Cities like Eindhoven, Rotterdam, and Utrecht are becoming attractive for startups and established tech firms seeking talent.
Despite these advantages, Niknam is concerned about the Netherlands' business mindset, which he believes is risk-averse, insular, and hostile to ambition. One local proverb in the Netherlands is "Steek je kop niet boven het maaiveld uit," which loosely translates to "Don't stick your head above the mowing line." This mentality, according to Niknam, thwarts ambitious entrepreneurs in the Netherlands.
However, Bunq's approach to proposals allows them to be pitched anonymously, which Niknam believes helps the company find the best ideas and promotes fairness. Bunq now boasts over 17 million users with more than €8bn in deposits.
In conclusion, the Netherlands offers a promising environment for tech companies, with its strong digital transformation ecosystem, excellent infrastructure, and growing talent pool. However, the country's business mindset, which some believe is risk-averse and insular, is a concern for many entrepreneurs and tech leaders, including Ali Niknam.
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The Netherlands, known for its favorable work-life balance and expanding digital transformation market, is attracting tech entrepreneurs and companies. However, concerns about the country's business mindset, perceived as risk-averse and insular, are causing anxiety amongst some tech leaders, like Ali Niknam, who finds the Dutch mentality thwarting ambitious entrepreneurs.
ASML, the Netherlands' largest company, and software unicorn Bird, one of Europe's biggest neobanks Bunq's founder and CEO, are contemplating relocation due to over-regulation, evolving business environment factors, and perceived hostility towards ambition. Despite these concerns, Bunq's approach to anonymous proposal pitches and growing user base testify to the potential of the Netherlands' tech ecosystem.
