Dutch SMEs investing less due to high costs and inconsistent gov't policy: study

Dutch SMEs investing less due to high costs and inconsistent gov't policy: study

SME entrepreneurs in the Netherlands are reluctant to invest, according to research by SRA, the largest association of accounting firms serving the SME sector, based on annual accounts of over 7,000 companies. The researchers blame low profit margins and uncertainty caused by increasing costs and inconsistent government policy.

According to the accountants, many entrepreneurs are postponing investments. “For 2025, we saw meager profit growth relative to turnover, leaving less and less money available for investments,” explained SRA board member Pieter van der Kwaak.

According to him, increased uncertainty is another reason companies are reluctant to invest large sums in new projects. “We see uncertainty due to increased personnel and procurement costs and inconsistent government policy. On top of that lie major challenges, such as staff shortages, grid congestion, AI, digitalization, and uncertainty due to the unrest in the Middle East.”

Van der Kwaak finds the fact that investments are lagging “worrying, because that means stagnation instead of growth. And this while the SME sector faces major challenges and innovation is essential for them,” he said.

The study showed that SME turnover increased by an average of over 6 percent in 2025 compared to the previous year, while profit growth amounted to a solid 3 percent. According to SRA, the higher turnover was largely due to inflation.

Half of all businesses saw profits decline, with nearly a quarter seeing a decrease of 50 percent or more. This is mainly because their purchasing and personnel costs increased.

Profits declined particularly in the construction and hospitality sectors. In the manufacturing industry, profits saw an above-average increase.