Businesses in The Netherlands-report

Buckle your seatbelts, because in two short pages I am going to learn you a thing that I only learned myself about two hours ago, so sit down, be quiet and enjoy the experience of my 4-am-coffee-induced-self-hatred-fueled-writing-extravaganza. The Netherlands economy runs on the concept of an open economy which means it mainly depends on foreign exchange. An analyzation of the Dutch economy reveals that it has a steady industry sector as well as low unemployment rate which stands at 3. 9% and low inflation as it is around 0. 32%. The Netherlands have many advantages for businesses. It is able to grant access to 95% of Europe’s most profitable consumers. Not only that, but the Netherlands also has a workforce that is highly educated considering the workers are bilingual, has remarkable infrastructure, thriving industrial sectors and more. All of these factors allow businesses to flourish and is why these businesses are so successful.

Overview

The different industry sectors divides a countries economy into three sectors of activities which are known as the primary, secondary and tertiary sectors. When a business is in the primary sector it means that they remove resources from the earth so that it is able to be used in making a product. In the Netherlands agribusinesses are the most common. This means that these business produce goods based on agriculture. Business that are classified in the secondary sector are business that use the resources found by the primary sector businesses to produce a usable product. Finally, we have the tertiary sector. Business that are named under the tertiary sector is also known as the service sector as it provides the services to the consumers. The main business in the primary consist of farming both crop wise as well as animal wise, fishing and rarely mining. These are the main ones as the Netherlands has a lot of available fertile land that allow these crops to grow well and for animals to live a healthy life until they are butchered.

Furthermore, there is a lot of water in the Netherlands, especially because 26% of it was initially underwater, and these waters have great ecosystems for fish which gives them a basically unlimited source of fish for the years to come. These factors mean that these business operating in the primary sector would be very successful in the Netherlands. Regarding the secondary sector in the netherlands, there is a large petrochemical industry and high tech industry. In these industries they manufacture plastic, paint and other products that contain multiple chemicals. Additionally, the Netherlands ranks third on the Global Innovation Index.

According to hollandtradeandinvest. com, the Netherlands high tech industry is so successful as it currently is is because it has a ‘computer savvy population’ that is also very creative and they have many entrepreneurs. Lastly, the most notable companies that exist in the tertiary sector are mainly banks or firms that are largely connected to banks. As was mentioned before, the tertiary sector existing in the Netherlands is quite small however it is growing as there isn’t much competition which would influence the government to help new businesses set up. Overall, the economy in the Netherlands is quite stable and they have many different industries in each sector that are important to the country.

Country Studies

There are multiple businesses that operate in each of the industry sectors however, these are the ones that I have decided to talk about. In the primary sector we have a company known as Hollandvis which works in the private sector. This company basically catches fish and then exports and transports it to wherever it needs to go, from restaurants to other surrounding countries. For the secondary sector, there is a company called the Royal Dutch Shell which is basically the branch of Shell based in the Netherlands. They take oil, fossil fuels etc. from companies who mine it and transform it to become the gas that they sell to people to power their cars. Shell is a private company in the private sector. The bank that operates under the tertiary sector is the ABN AMRO bank is the third largest ban in the Netherlands, who like the other two businesses operates in the private sector as well. There are many banks where the government owns a share however, not with ABN AMRO. The companies that are shown for each sector are one of the biggest in their industries.

Country Data

According to statista, the primary sector contributes to 1. 86% of the Dutch GDP and employs 2. 21%. The secondary sector in Holland contributes to about 17. 53% of the countries GDP and in 2017 it was recorded for this sector to employ 16. 54% of the workforce. Lastly, the tertiary sector employs 81. 25% of the DUtch work as well ass contributes to 70. 38% of the Netherlands’ GDP. The tertiary sector is by far the largest contributor as said by dnb. nl “50% of the value added embodied in domestically produced exports” while the secondary sector only counts for roughly a third.