Dutch entrepreneurial growth is being hindered by closed-minded attitudes, according to the CEO of Bunq.
In the heart of Europe, the Netherlands has long been a hub for tech innovation. However, recent developments have sparked concerns among entrepreneurs and tech companies, leading some to contemplate leaving the country.
The Dutch tech ecosystem, admired for its optimism and rapid growth, is now facing a perceived risk-averse and closed business environment. This shift is partly influenced by regulatory and tax changes, with new anti-avoidance tax rules creating uncertainty for entrepreneurs during exit events, turning previously legal strategies into potential tax abuses [4].
Despite a surge in startup funding in Q2 2025, particularly in medtech and software, the growth coexists with concerns about a more cautious business climate. Venture capital funds are becoming more selective in deploying capital, and entrepreneurs face higher hurdles for scaling or exiting, encouraging relocation to more entrepreneur-friendly countries [3][4].
The Netherlands also faces structural challenges such as labor shortages and demographic shifts that impact business confidence. While hiring remains positive, expectations have cooled compared to 2024, signaling a less dynamic outlook in some sectors and potentially impacting the entrepreneurial ecosystem's vibrancy [2].
Ali Niknam, the founder and CEO of Bunq, a Dutch fintech company that has become one of Europe's biggest neobanks, expresses concern about the Netherlands' business environment. He cites risk-aversion, growing insularity, and hostility to ambition as reasons for talent leaving the country [5].
Bunq, which grew into Europe's second-largest neobank after Revolut and one of the few to achieve profitability, with over 17 million users and more than €8bn in deposits, emerged in the wake of the 2008 financial crisis, with a focus on creating an alternative to incumbent banks [6]. Niknam's approach to proposals can be pitched anonymously, which he believes leads to the best ideas winning and a fairer process [7].
Peter Wennink, ASML's former CEO, has warned against losing access to skilled workers, while over nine in ten expats and migrant workers no longer consider coming to work in the Netherlands [8]. Tech scaleups, including software unicorn Bird, are also considering exits due to factors like over-regulation and a bad climate for tech businesses [9].
Niknam believes a change in attitude and mindset can make a difference for tech businesses in the Netherlands. He feels that many people in the Netherlands take their rights for granted and believes the country is abandoning its internationalist roots, which he believes is damaging its tech ecosystem and chasing talent away [10].
In a proverb in Dutch culture, "Steek je kop niet boven het maaiveld uit," embodies a risk-averse and inward-looking mentality that Niknam believes thwarts ambitious entrepreneurs in the Netherlands [11].
On June 20, Niknam will speak at a conference in Amsterdam, shedding light on these issues and offering insights into how the Netherlands can foster a more supportive environment for tech growth and entrepreneurship.
The Netherlands' shift towards a perceived risk-averse and closed business environment, influenced by regulatory and tax changes, is causing concern among tech entrepreneurs and companies, leading some to consider leaving the country. Concurrently, venture capital funds are becoming more selective in deploying capital, creating higher hurdles for entrepreneurs aiming to scale or exit their businesses, potentially driving them towards more entrepreneur-friendly countries.
Despite the growth in startup funding, particularly in medtech and software, the Netherlands faces structural challenges such as labor shortages and demographic shifts that impact business confidence, creating a less dynamic outlook in some sectors and potentially affecting the vibrancy of the entrepreneurial ecosystem.
