The Transformation of Global Economies: What It Means for SMEs
The Transformation of Global Economies: What It Means for SMEs
by Transformation Nomads
Over the last 30 years, the Dutch economy has undergone dramatic changes that have reshaped its core. Where SMEs once fueled more than 60% of the nation's economy, today they contribute only 31% (CBS, 2023). This decline is more than a statistic—it's a reflection of a shift that has far-reaching consequences for local businesses and the future of the Dutch economy.
How Multinationals Took Over
Since the '90s, the number of multinationals headquartered in the Netherlands has decreased, while foreign multinationals—particularly U.S.-owned—have risen. These global giants now account for 56% of the economic output. Profits generated here are often funneled back to parent companies abroad, leaving the Dutch government to make up for the lost corporate tax revenue by raising taxes on citizens and smaller businesses.
The Hidden Costs
This shift means more than just economic restructuring; it impacts political and cultural dynamics. Today, the influence once held by Dutch leaders has been replaced by foreign power players. Peter Wennink of ASML was one of the last significant Dutch CEOs until he was succeeded by a Frenchman amid U.S.-imposed export restrictions to China. These changes underline how international interests now steer parts of the Dutch economy and, by extension, policy.
Moreover, American financial giants such as BlackRock hold stakes in many of these multinationals and maintain connections with Dutch political donors and private equity firms. The rise of this foreign economic elite has implications for how decisions are made—prioritizing shareholder profits over the needs of local entrepreneurs and communities.
The Impact on SMEs
The decline of SMEs has turned the "engine of the economy" into a hollow phrase. Without a strong SME sector, job creation, innovation, and community stability suffer. Local entrepreneurs are left navigating an environment increasingly shaped by the interests of powerful foreign shareholders, diluting their influence and challenging their sustainability.
Original message here: https://www.linkedin.com/feed/update/urn:li:activity:7258392554159665152/
Rapport: https://www.cbs.nl/nl-nl/longread/de-nederlandse-economie/2023/multinationals-in-de-nederlandse-economie?onepage=true
Call to Action
SMEs are essential to a balanced economy and a vibrant community. Supporting local businesses isn't just an economic decision—it's a cultural one. Entrepreneurs and their teams need the right tools and guidance to adapt and thrive in an ever-changing landscape.
At Transformation Nomads, we facilitate entrepreneurs and their teams in transformations—beyond the ordinary. Whether at home or at work, we help you build resilience, adapt strategies, and lead with confidence in this shifting economic environment.