Summary of the Netherlands insights
Conducting business abroad has become slightly more difficult than 3 years ago according to Dutch mid-cap CFOs. Despite the economic and regulatory difficulties facing all businesses, 98% of Dutch mid-cap CFOs we interviewed are confident that their three year plans to expand internationally will succeed. On average, they expect 59% of their revenues in 2014 to come from sales outside the Netherlands, up from the current 56%.
Dutch businesses are focusing on expanding into Germany, USA, China, Belgium, UK, France and Russia while the Netherlands plays an integral part in the expansion plans of German and Russian businesses.
Finding the right local management, regulatory interference, red tape & bureaucracy and intensity of local competition are the biggest challenges faced by Dutch companies when expanding internationally.
Most of Dutch businesses act fast once a decision to open a new office is made - 78% open an office in less than a year. Over half of Dutch businesses claim that internal sources (62%) and accountants/tax advisers (52%) are the most trusted sources when expanding abroad.
Outlook for cross border growth
- Germany, USA, China, Belgium, UK, France and Russia are important markets for Dutch outward expansion
- Dutch expansion abroad is driven by market and growth opportunities
- Dutch businesses are more likely to ‘play it safe’, expanding in their core sector and with both new and existing products and services
- Investment in people will be the main focus over the next 3 years for Dutch companies expanding abroad
Challenges faced when expanding internationally
- Finding the right local management
- Regulatory interference
- Red tape & bureaucracy
- Intensity of local competition
Top insights for growth
- Do thorough research to improve your knowledge of the market
- Recruitment of good staff is key to success
- Find good contacts/ strong partners in the region
The in-country summaries are given as general commentary only. The global BDO Ambition Survey 2011 is based on 751 CFOs’ responses of mid-cap companies across 13 countries (50 in Netherlands). The survey was conducted by StrategyOne between 23 May – 8 July 2011