As a result, the economic landscape remains unpredictable. “How is the Netherlands doing now?” and “What are the expectations?” are questions that play out in the minds of many entrepreneurs.

We don't have a crystal ball, but we do have the gaze of an entrepreneur. In this blog article, we are therefore happy to help you with more information. You can read how the current situation in business is doing and what the expectations are for the coming year. Use it to your advantage!

What is the current state of the Dutch economy?

Compared to other countries in the European Union, our economy is growing a lot slower this year. This is due to changes in the Dutch labor market, such as flexibilization, and smaller wage increases.

However, we did not take as hard blows as we expected, says the Executive Board of the European Union. For example, if you look at countries such as Greece, Croatia, Malta and Spain, we come from a much less deep valley. Actually, not that bad, so.

Consumers have therefore not been afraid to spend their money. Despite the fact that goods and services were more expensive than the year before, a lot more money was spent in retail. In fact, the sector has experienced the second highest growth in this century!

We are growing slower, have suffered less than expected and have not kept our hands on the cutting edge. Nevertheless, the Dutch economy has shrunk at the bottom of the line. You would think that a lot of companies have 'fallen' as a result, but for now, many entrepreneurs seem to be able to (still) make do with what they have.

What about each sector?

The differences per sector are significant. We all know that the travel industry is in the red, just like the hospitality industry. Nevertheless, under the circumstances, the food sector is doing quite well, thanks to, for example, the delivery of food to home. Various new initiatives have also been created, such as “food walks”, where you can pick up a snack and a drink at various restaurants while walking.

Although a lot of orders were (and are being) ordered online, retail did not fare as well at the end of last year. Hopefully, the current “click & collect” scheme will alleviate that, along with the higher TVL and more funding for unused stocks. Just think of all those seasonal clothes that have been left behind...

What about the current financial measures?

In 2021, a renewed support package of 7.6 billion will help our entrepreneurs survive. This is how the NOW will rise again, starters will receive (finally!) support and work has been done to ensure a tax-free allowance for working from home facilities. Here are the 5 most important changes:

1. 300 million for an event guarantee fund.
2. Extra support for starters (note a waiting period).
3. Higher TVL and more money for unused stocks.
4. The NOW goes to 85%.
5. Tax measures to also reimburse costs for working from home and necessary facilities tax-free.

What are the expectations?

The ING expects the Dutch economy to grow this year. That does not mean that we will fully get back on our feet, but it does look better than expected.

The differences by sector
Let's start with the good news: sectors such as education, healthcare and ICT are likely to fully recover this year. Our development, care and the basis for the profound digital transformation will therefore be able to continue at full speed.

Unfortunately, the hospitality industry, transport and storage and other business service providers will have a harder time this year. This should definitely be focused on”trends” such as digital transformation and possibly attracting alternative financial resources. The hospitality industry has already started many great initiatives, but transport and storage and other business service providers will have to make (more) claim to their creativity.

Sectors that did stay afloat last year are construction and agriculture. However, a contraction is actually expected this year. This is due, for example, to the long lead times of projects, the large work inventory and the sector's therefore delayed response to economic changes.

The consequences by sector

As we just mentioned, one sector is better able to adapt than the other. Take the hospitality industry, for example. Of course, many flex workers work there, so you can quickly reduce staffing and wage costs if necessary.

And so it's easy for business services companies to let their staff work from home. Many online marketing agencies, for example, have been able to run almost smoothly over the past year. But how do you do that when you are in construction, industry or transport?

This requires a customized approach. Research, initiative, creativity and digital transformation are key elements of this.

Conclusion

Although this year will once again present us with unique challenges, there are certainly still opportunities you can seize as an entrepreneur. Make use of the arrangements that exist and possibly attract (alternative) financing to make smart investments that will help you move forward this year.

Do you need more financial space, and are you unable to work it out with the existing government regulations? Click on the button to apply for credit within 10 minutes. We are happy to help you with customized advice.

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