Broad prosperity falling in the Netherlands; “Worrying” for entrepreneurs: Rabobank

Netherlands residents’ broad prosperity decreased slightly this year, Rabobank reported. Entrepreneurs saw the biggest drop in broad prosperity, something the bank called “worrying” given an expected increase in bankruptcies and the tight labor market.

After remaining stable in 2023, Netherlands residents’ broad prosperity dropped by 1.2 percent this year, according to the bank. Dutch people reported feeling more negative about their environment, safety, and social involvement, in particular.

The broad prosperity of employees, non-workers, and unemployed people decreased only slightly, but that of entrepreneurs decreased by a significant 5.4 percent, the bank said. The decrease was most visible in personal development and social involvement (-8 percent).

According to the bank, entrepreneurs generally invest less in personal knowledge and skills and are less involved in their living environment than a year ago, even when corrected for income. “It is possible that entrepreneurs spend more time on increased regulatory pressure or measures for the tight labor market,” the bank said.

“The fact that entrepreneurs invest less in themselves and are less involved in their direct living environment is worrying in a period of income pressure and lower job security,” Rabobank said, referring to an expected increase in bankruptcies, declining labor productivity, and widespread staff shortages. “Personal development is now more important than ever to meet these challenges.”

According to Rabobank, both entrepreneurs and workers can gain “relatively much broad prosperity” if more is invested in social involvement and personal development. “Perhaps better access to education and courses and less regulatory pressure will benefit this,” the bank said. “Individuals who invest in knowledge and skills can be deployed more flexibly in the labor market. Additional knowledge and skills often also result in higher labor productivity.”