Government should do more to improve labor productivity says SME organization

The government and entrepreneurs should do more to improve productivity in small and medium-sized enterprises (mkb). Jacques van den Broek, chairman of the Dutch committee for small and medium-sized enterprises, the Nederlands Comité voor Ondernemerschap, said this on Wednesday during the presentation of the new annual message called State of MKBs 2024.

"We need breakthroughs for our economy and our earning capacity, both bold choices from the Cabinet and more innovative power from MKBs themselves," said Van den Broek.

The Netherlands is still one of the most productive economies in the world, but countries of a similar level are experiencing stronger growth in labor productivity, according to Van Den Broek.

In the annual report, the Committee makes proposals to the government and entrepreneurs to strengthen productivity: by improving access to financing, the functioning of the labor market, and services for MKBs.

The annual report was handed over to the Minister of Economic Affairs Dirk Beljaarts and Jacco Vonhof, the chairman of MKB-Nederland, in front of Queen Maxima, who is a member of the Committee.

Beljaarts said that the Committee is right to sound the alarm. "Productivity determines the competitiveness of our economy. And for our high level of prosperity. Companies are working very hard for this. We are doing well, but other countries are doing better. They are passing us. We really have to do something about this.”

According to the minister, MKBs and large companies can become more productive by innovating or digitizing.

Vonhof, the chairman of MKB Nederland, has been concerned about the low productivity growth for a while. Combined with the strong increase in costs for things like wages and energy, this low growth puts pressure on returns in almost all MKB sectors.

He believes that businesses want to invest but are often not able to. "Almost everything has become scarce in our country. We have a tight labor market and scarce space, including on the electricity grid, which means that companies cannot, for example, get rid of gas."

According to Vonhof, what entrepreneurs need is trust, predictable government policy, and simplification of legislation and regulations. "Because it's all way too complex now."