Netherlands leader in social enterprise: research presented in Davos

Dutch social enterprises are performing well compared to similar companies in Europe. This is evident from the latest edition of the European Social Enterprise Monitor (ESEM), presented at the World Economic Forum in Davos. Dutch social enterprises show that social impact and economic growth go hand in hand. 

Higher profitability  

In the Netherlands, the average turnover is €2.2 million, compared to €1.8 million at the European level. Dutch companies also score remarkably higher on profitability: 44% of companies were profitable in 2023, compared to 30% in Europe. That profit is only a means and not an end is demonstrated by the fact that 64.2% of profitable Dutch companies reinvest or donate most or all of their profits in their social or environmental mission. In Europe, this percentage is as high as 77%. 

Adult movement 
In the Netherlands, only 8.1% of social enterprises are in the initiative and start-up phase (there is still only an idea or prototype and exploration to market entry), compared to about 20% in Europe. In contrast, almost half (49.3%) of Dutch enterprises are in the early implementation and growth phase (stable phase with broadening of markets and/or products), which is significantly higher than the European average of 29.8%. The Netherlands is also more strongly represented in the late implementation and growth phase, with 33.1% of companies, compared to 22.2% in Europe. 

Work to be done 

It is clear from our previously published edition of this study that there is still plenty of work to be done to bring the potential of social entrepreneurship to fruition. For example, social enterprises in the Netherlands experience little political support and there is an urgent need for a specific legal form, such as the proposed “social B.V. (BVm).

Stefan Panhuijsen, director, Social Enterprise NL: “This research shows that Dutch social enterprises are among the most professional and successful in Europe. But with targeted policies, including procurement and legal forms, the government can further increase the impact of these entrepreneurs with solutions. 

About the European Social Enterprise Monitor 

The European Social Enterprise Monitor (ESEM) is the largest biennial survey of social entrepreneurship in Europe. It provides policymakers, businesses and civil society organizations with valuable insights to better support social enterprises. This year 1807 social enterprises from 31 countries participated, including 148 from the Netherlands. The monitor is conducted by Euclid Network in cooperation with us at their side as a national partner.