Assignment 2 - Global Entrepreneurship Research Project - BUSM4186 PDF

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ENTREPRENEURSHIP & GLOBAL CHALLENGESASSIGNMENT 2:Global Entrepreneurship Research ProjectSubject code: BUSMSubject name: ENTREPRENEURSHIP & GLOBALCHALLENGESLocation & campus: SGS CampusClass group number: Group 2Student name: LE HOANG BAO NGOCStudent id: SLecturer: Mr. James CooperWord c...

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ENTREPRENEURSHIP & GLOBAL CHALLENGES

ASSIGNMENT 2: Global Entrepreneurship Research Project Subject code:

BUSM4186

Subject name:

ENTREPRENEURSHIP & GLOBAL CHALLENGES

Location & campus:

SGS Campus

Class group number:

Group 2

Student name:

LE HOANG BAO NGOC

Student id:

S3878595

Lecturer:

Mr. James Cooper

Word count:

1385 words

I.

INTRODUCTION

Netherlands is a northwestern European country which is a high-income economy with chemical, oil and machine exporting. (CIA 2022) Entrepreneurship is critical for innovation, employment creation, and the introduction of competitive dynamics into the corporate environment. (Shabangu 2014) Therefore, in recent years, there are many new businesses established in the Netherlands leading to the Total early-stage Entrepreneurial Activity (TEA) score of over 10% (Bosma et al. 2021) which quantifies individual entrepreneurial behaviour, attitudes and the national framework. (GEM n.d.) This research will identify the entrepreneurial opportunities which can be supportive for the entrepreneurship of the Netherlands and give out the recommendations based on the important statistics and tools.

II.

NETHERLANDS PERTINENT FACTS

The first fact that supports entrepreneurial activities in the Netherlands is the Gross Domestic Product (GDP). According to the World Bank, the figure of GDP in the Netherlands has witnessed fluctuations and stability in recent years. (2020) GDP represents the monetary worth of final products and services and encompasses all production created within a country's boundaries. (Callen 2020) Moreover, the Private Consumption of Netherlands accounted for nearly half of the GDP. (CEIC n.d.) Therefore, it means that Dutch have a tendency to spend a lot of money on their daily life. As a consequence, entrepreneurial enterprises profit since the value of their goods may be raised and they have an excellent opportunity to test, alter, and develop their products.

Figure 1: Netherlands GDP from 1960 to 2020 (Reproduced from: The World Bank n.d.) Secondly, specific ages could be supportive of entrepreneurship in the Netherlands. The successful age of entrepreneurs is about 40 to 47 years old. (Hall 2018) As can be seen from the figure 2, the ages from 40 to 49 are one of the majority of ages in the Netherlands. This age group is assumed to have had extensive exposure to social concerns and a greater understanding of the society (Startup Europe 2020); hence, they will have a very different perspective on employment and how they define success in life and the workplace.

Figure 2: Population ages in the Netherlands (Reproduced from: Index Mundi 2021)

Lastly, the Netherlands combines world-class infrastructure with a strategic location on the continent of Europe. Due to that reason, the Netherlands could find favour from many other countries from other nations and also the Netherlands plays an important role as the transportation hub of Europe. (CT Corporation Staff 2019) With the status of being a lucrative consumer market, entrepreneurial enterprises are encouraged and benefit from the facilitation of international business ties, which enables them to expand their product distribution throughout all European markets.

III.

ANALYSIS 1. Factors that have been influential/supporting the entrepreneurial activities a. Infrastructure

Without a well-functioning and accessible infrastructure, economic progress cannot be sustained. As the Government of the Netherlands reported that the government contributes to

the financing and construction of public infrastructure such as ports, irrigation systems, coastal defences, and a secure energy supply. Additionally, assisting local governments in developing the ability to plan and contract infrastructure projects. (n.d.) In the year 2020, the Dutch government invested roughly 5 billions euros in infrastructure projects and over doubled in 2021. (Statista Research Department 2022) Moreover, the infrastructure in the Netherlands also was ranked first within Europe in the research of WEF about 140 countries in determining the infrastructure quality. (World Economic Forum n.d.) Besides, Netherlands had been claimed to be the the most advanced logistic service providers (LSPs) that offer the ultimate logistic supply chain in Europe. (Mordor Intelligence n.d.) Logistics services are involved in the planning and execution of product transfers at all levels. These features may be critical for entrepreneurs in a variety of sectors when it comes to product or raw material delivery. b. Political factors The government of the Netherlands published the entrepreneurship policy in order to create more opportunities and reduce the obstacles for entrepreneurs entering the markets. (Ministry of Economic Affairs 2002) Policy lines place a premium on expanding prospects for new businesses and encouraging entrepreneurship in current businesses, particularly high-growth firms. Deregulation, cutting administrative burdens, lowering startup costs, and lowering entrance and exit obstacles are all critical components of the entrepreneurship policy. Besides, the government is taking measures to alleviate businesses' regulatory burdens. These include expediting – or even automating – the issuance of permits and maximising the use of digital technologies. (Government of the Netherlands) Thus, the Dutch government's institutional efforts have a positive effect on the level of entrepreneurial activity, thus increasing the number of new businesses in the nation. c. Economic factors

The average household net-adjusted disposable income per capita in the Netherlands is $34.984/year, higher than the OECD average of $30.490/year. (OECD Better Life Index n.d.) The Netherlands has the third-highest minimum salary within Europe as well as the GDP is also high in the EU. (David 2022) Therefore, the economy of the nation is much more liquid than it otherwise would be. This indicates that both enterprises and consumers are eager to spend, and the expenditure rate is higher than any other OECD countries. (OECD 2021) Therefore, many entrepreneurial organisations will be easily established because they can create many sectors for various demands of the population, entrepreneurial efforts benefit the Netherlands, including foreign ones. 2. Factors that have been influential/supporting the entrepreneurial activities in the future a. Technological readiness With the fourth-largest GDP per capita in Europe, high standard of living and an open economy, the Netherland's technological enhancement has always been a source of strength for the businesses. According to Invest in Holland, Netherlands was ranked as one of the top 10 most technology-readiness countries in the world. (2018) The Netherlands' technology investment is expected to expand faster than the rest of the EU's top six countries, with cloud, software, and outsourced services all contributing significantly to growth. (Ferranti 2021) Organisations may use more standardised technology to foster academic entrepreneurial processes across the organisation, leading in more data and process sharing across corporate borders. (Rippa & Secundo 2019) In general, technical skills are crucial since they enable the development of global enterprises and their effective internationalisation. As a result, the Netherlands market presents an excellent potential for enterprises to capitalise on this opportunity. b. Innovation

The Netherlands ranked 6th in the Global Innovation Index in the year 2021 and scored well in the sub-rankings for innovative contributions in ICT infrastructure (4th). (PWC n.d.) Meanwhile, Dutch policy in the domain of innovation acknowledges these constraints and reflects lofty ambitions, with the goal of positioning the Netherlands among the world's top five knowledge economies. (OECD 2014) However, the Netherlands is falling behind in terms of large-scale technology investments in comparison with other European entrepreneurial businesses. (Yahoo Finance 2021) Although the backwardness is experienced in the Netherlands, the Dutch government pays special attention to entrepreneurial innovation. (Ministry of Economic Affairs 2002) Moreover, in 2018, the Dutch government launched the Dutch Digitization Strategy, which aims to accelerate digitalization across many industries. The Dutch aspire to make it feasible for their country to become Europe's digital leader by training all people with adequate digital skills. This is possible because the connection rate of the Netherlands is nearly a hundred percent. (Wagemakers 2021)

IV.

RECOMMENDATION

When starting a business, the entrepreneur has to consider many elements to have the best performance. The Netherlands' startup firms may benefit from the government's many initiatives supporting startups, which the new company may use to enhance its business innovation and performance. Additionally, SMEs should also consider the potential Citizens in the Netherlands. Higher education could help the enterprise become more substantial and effective. (OECD Skills Studies 2018) Meanwhile, according to OECD, the Netherlands has a high rate of educational attainment in comparison to other OECD nations. On average, 32% of Dutch people aged 25-64 have a university degree (tertiary-type A), which is much higher than the OECD average of 24%. (2014) Furthermore, the infrastructure which was developed by the government could be a benefit for entrepreneurial enterprises in the Netherlands. Besides, with the evolution of logistics,

businesses may eventually be able to use this infrastructure to expand their operations. Businesses must embrace technology in order to stay inventive and efficient. As a consequence, organisations should consider adopting digital technology as well as utilise the high-quality infrastructure into their operations if they have a big database and access to technical innovation.

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Fund, 24th February, viewed 5th April 2022,

CEIC n.d., ‘Netherlands Private Consumption: % of GDP’, CEIC Data, viewed 3rd April 2022, CIA 2022, ‘Netherlands: one page summary’, graph, CIA, viewed 8th April 2022,

CT Corporation Staff 2019, ‘Doing business in the Netherlands’, Wolters Kluwer, 1st November, viewed 4th April 2022, David, J 2022, ‘PESTEL analysis of the Netherlands (Country Profile)’, How and What, 4th February, viewed 3rd April 2022, Ferranti, M 2021, ‘Dutch spending on IT set for rebound this year, Forrester says’, CIO, 28th April, viewed 4th April 2022, https://www.cio.com/article/191655/dutch-spending-on-it-set-forrebound-this-year-forrester-says.html#:~:text=Forrester%20forecasts%20tech%20spending %20in,a%201.3%25%20increase%20from%202019.

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Government of the Netherlands n.d., homepage, Netherlands,

Hall, M 2018, ‘Age And Entrepreneurship: Research Shows Average Age Of Successful Founders Is Older Than You Think’, Forbes, 16th October, viewed 4th April 2022,

Index Mundi n.d., ‘Netherlands Age structure’, graph, Index Mundi, viewed 4th April 2022, https://www.indexmundi.com/netherlands/age_structure.html Invest in Holland 2018, ‘The Netherlands is One of the Best Countries for Tech Companies, Says New Ranking’, Invest in Holland, 19th June, viewed 7th April 2022,

Ministry of Economic Affairs 2002, Entrepreneurship in the Netherlands, ondernemerschap.panteia.nl, EIM Business & Policy Research, viewed 3rd April 2022,

Mordor Intelligence n.d., ‘NETHERLANDS FREIGHT AND LOGISTICS MARKET GROWTH, TRENDS, COVID-19 IMPACT, AND FORECASTS (2022 - 2027)’, Mordor

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