Characteristics of the internationally active business economy
This chapter examines the characteristics of companies and entrepreneurs that are internationally active. First, it discusses the Dutch business economy from the perspective of trade: to what extent do companies export, import or engage in both activities? What proportion of internationally active companies are independent SMEs or large enterprises? Which sector has the largest number of international traders? The chapter then highlights internationally active entrepreneurs: what proportion are women and how does this figure vary by age category and sector? Finally, we compare the characteristics of employees of companies with production processes that depend to a greater or lesser extent on imports or exports of goods.
3.1Key findings
As the 17th largest economy in the world, as well as being in 4th place as an exporter of goods and of services and the 3rd largest investor, the Netherlands holds a strong position internationally (UNCTAD, 2021a, b, c, d). To consolidate this position, the Netherlands specifically supports small and medium-sized enterprises, start-ups and female entrepreneurs through its trade policy, because that is where there is probably the greatest untapped potential for international entrepreneurship (Kaag, 2018).
If we consider the group of almost 1.3 million companies in the Dutch business economy of 2019 from the perspective of trade, we see that two out of three did not trade any goods or services outside the Netherlands. Therefore, in 2019, 34% of companies were active international traders. For independent SMEs, the share was 33%, while for large enterprises it was 89%.
International traders form a highly diverse group of companies that differ in many respects. This group can be broken down first of all according to type of trade. For example, 67% of international traders from the Dutch business economy only import goods and/or services, while 10% of them are exclusively exporters. This means that the remaining 23% are active as two-way traders. Of all the companies that trade internationally, nearly 3 in 10 are active in the wholesale and retail trade. For specialised business services, this figure is 26% and for information and communication it is 10%. In 2019, 5% of internationally operating companies were multinationals. Compared to the whole of the Dutch business economy, the share of multinationals in the total number of international traders is above average.
In 2019, there were more than 445,000 companies in the Dutch business economy that were active internationally. These were both the companies that trade internationally and the multinationals that were not involved in international trade. As a multinational is part of an international corporation, it is by definition internationally active. The Dutch internationally active business economy increased its productivity in 2019. Productivity per employed person was around €76,000 in 2019, up from €70,000 in 2018.
Some 44% of internationally active companies have been in existence for 10 years or more, nearly 22% for between 5 and 10 years, and 34% for under 5 years. In relative terms, the manufacturing, construction, and transportation and storage sectors include the most companies that have been operating for 10 years or more.
In 2019, around 7,900 companies achieved a proportion of their sales abroad soon after being set up. This means that a quarter of new exporters in 2019 can be characterised as born globals. Just under two-thirds of born globals start in specialised business services or the wholesale and retail trade.
In all the various sectors under consideration, at least twice as many male as female entrepreneurs were internationally active in 2019. However, of the total number of female entrepreneurs, the percentage (17%) of those who were internationally active was comparable to that of male entrepreneurs (18%). However, the median trade value of both the goods and service exports of female entrepreneurs is around €10,000 lower than the corresponding trade value for male entrepreneurs. The difference is 19% for exports of goods and 25% for exports of services.
Of the full-time equivalents employed by companies that import goods, 80% work for companies of which the ratio of imports to turnover is no more than 25%. Employees at companies with a relatively high ratio of goods imports or exports to turnover earn higher wages on average. Companies with an import intensity of more than 75% pay their employees on average €7 gross per hour more.
3.2Dutch business economy from the perspective of trade
In 2019, the Dutch business economy (see box for more information) comprised nearly 1.3 million companies. This group can be divided into one-way importers, one-way exporters, two-way traders (companies that import and export), and companies that do not trade in goods or services and therefore do not trade internationally at all.noot1 Companies belong to the category ‘not an international trader’ if they do not report any international trade in goods or services and focus exclusively on the domestic market.
What is the Dutch business economy?
Companies considered part of the Dutch business economy are those listed in the General Business Register (ABR), sections B to N plus division S95, with the exception of those in section K. This delineation is referred to internationally as ‘non-financial business economy’. This category is composed of the following sectorsnoot2:
- B Mining and quarrying;
- C Manufacturing;
- D Energy;
- E Water and waste management;
- F Construction;
- G Wholesale and retail trade;
- H Transportation and storage;
- I Accommodation and food services;
- J Information and communication;
- L Renting, buying and selling of real estate;
- M Specialised business services;
- N Renting/leasing and other business services;
- S95 Repair of personal and household goods.
One in three companies in Dutch business economy engage in international trade
In 2019, nearly 34% of the Dutch business economy (or some 442,000 companies) was made up of international traders in goods and/or services – nearly 24,000 more than a year earlier. Of those international traders, 67% were exclusively involved in imports, 10% only in exports and 23% were both importers and exporters (two-way traders) (Figure 3.2.1). However, by far the largest group in the Dutch business economy is made up of non-traders, with around 853,000 companies in 2019. This means that two out of three companies in the Dutch business economy do not trade any goods or services outside the Netherlands.
In 2019, the Dutch business economy expanded by more than 71,000 companies from the previous year (Figure 3.2.1), which was an increase of 5.8%. The composition of the business economy by type of trader (whether or not companies trade internationally) was virtually unchanged compared to 2018.
| Jaar | Importer | Exporter | Two-way trader | Not trading internationally |
|---|---|---|---|---|
| 2019 | 292 | 46 | 97 | 860 |
| 2018 | 276 | 45 | 97 | 806 |
| 2014 | 195 | 37 | 76 | 747 |
Compared to 2014, the total number of companies in the Dutch business economy had increased by 23% in 2019. Because the total number of international traders grew faster during this period (+43%) than the number of non-traders (+14%), the proportion of non-traders declined slightly. Within the group of traders, there was mainly strong growth in the number of companies that are exclusively active in imports. Compared to 2014, there were nearly 100,000 more such companies, which is an increase of 51%. The rise in the number of traders that do business abroad is connected among other things with the growing total number of companies in the Dutch business economy. The growth in global trade also plays a role. Increasing digitisation has undeniably altered international trade. It lowers the costs of participating in international trade, connects businesses and consumers worldwide, facilitates the spread of ideas and technologies, and eases the coordination of global value chains (OECD, 2019). Digitisation has made it easier for companies to sell their products across country borders, for example through online platforms, where this was previously too costly or too complicated (Polder & Rooyakkers, 2021).
Companies in wholesale and retail trade or manufacturing relatively often trade internationally
The number of companies that do or do not trade internationally varies considerably from one sector to another (Figure 3.2.2). For instance, the share of international traders is above average in the wholesale and retail trade, manufacturing, and information and communication sectors. We know that one-third of companies in the Dutch business economy do business with foreign countries, and in the wholesale and retail trade the share is as high as 52%. This is not surprising in itself, as companies in the wholesale trade form an indispensable link between suppliers and customers. This sector provides support services, and in doing so it connects many sectors at home and abroad (CBS, 2019b). Of all the companies that trade internationally, nearly 3 in 10 are active in the wholesale and retail trade.
| Bedrijfstak | Importer | Exporter | Two-way trader | Not trading internationally |
|---|---|---|---|---|
| Manufacturing | 23.4 | 3.5 | 19.8 | 53.3 |
| Construction | 15.4 | 1.2 | 1.9 | 81.5 |
| Wholesale and retail trade | 32.3 | 3.4 | 16.5 | 47.8 |
| Transportation and storage | 18.4 | 4.5 | 9.1 | 67.9 |
| Accommodation and food services | 28.2 | 0.7 | 0.9 | 70.3 |
| Information and communication | 27.9 | 6.0 | 9.5 | 56.7 |
| Real estate activities | 17.7 | 1.2 | 1.4 | 79.7 |
| Specialised business services | 19.5 | 5.0 | 4.6 | 70.9 |
| Renting/leasing and other business services |
18.8 | 3.1 | 4.5 | 73.6 |
| Other sectors | 20.3 | 1.5 | 3.4 | 74.8 |
| . | . | . | . | |
| Dutch business economy | 22.8 | 3.6 | 7.8 | 65.9 |
Dutch manufacturing is also strongly interconnected with foreign countries: 47% of manufacturing companies traded beyond the borders of the Netherlands in 2019. For example, Dutch manufacturing is highly dependent on exports because most of its customers are located in other European countries (De Boeck, 2017). The food and beverage industries are examples of industries that have become increasingly dependent on foreign countries (CBS, 2017). In addition to exports, the sector is also heavily dependent on imports of foreign products (De Boeck, 2017). Of total goods imports of nearly €460 billion, more than €105 billion were imported by the manufacturing sector in 2019. A proportion of the imports are directly consumed in the Netherlands while another proportion consists of intermediate goods and services that are (further) processed here in the production process and subsequently consumed or re-exported.
Conversely, the share of international traders in construction, at 18%, is significantly lower than in the Dutch business economy as a whole. Nevertheless, the number of international traders in this sector has risen by 70% from 2014. The number of international traders in the accommodation and food services sector increased by about 93% in 2019 compared to 2014, to just under 20,000 companies. However, the share of international traders in this sector is about 30%. Within this sector, there is also particularly strong growth in the number of traders that are exclusively importers. In absolute terms, the number of international traders for all sectors has grown compared to 2014.
There are also significant differences between sectors in the share of companies that exclusively import, exclusively export or both import and export, as shown in Figure 3.2.2. Of all sectors, the wholesale and retail trade had the highest share of companies in relative terms (32%) that were only active in imports in 2019, against 23% for the Dutch business economy as a whole. The sector with the highest percentage of companies that only export is information and communication (6%).noot3 For the total Dutch business economy, the share is 3.6%. In relative terms, two-way traders were most common in manufacturing, at nearly 20%.
89 out of 100 large enterprises trade internationally
The Dutch business economy can be broken down further by company size. The independent small and medium-sized enterprises include all Dutch-owned businesses employing fewer than 250 people across the whole organisation. Large enterprises comprise all Dutch businesses that are part of a group employing at least 250 people and/or part of a foreign-owned group.
Of nearly 1.3 million companies in the total Dutch business economy in 2019, 1.28 million were independent SMEs and 17,000 were large enterprises. Around 99% were therefore independent SMEs. Of all the companies engaged in international trade, around 97% are independent SMEs.
Independent SMEs are far less active as international traders than large enterprises (Figure 3.2.3). While two-thirds of independent SMEs did no business with foreign countries in 2019, this was true of only 11% of large enterprises. It is generally known that small companies trade less in international markets than large enterprises (Bernard et al., 2007 and 2012). Independent SMEs encounter various obstacles to entering foreign markets. For example, it is usually more of an effort for them to find local partners; they often lack knowledge of local markets; legislation and regulations differ; it is more difficult for them to access funding; and exporting is usually associated with payment and currency risks. The larger the company, the more likely it is to export (Brakman et al., 2018). In comparison with large enterprises, independent SMEs do more themselves and are less active in global value chains. Independent SMEs therefore focus more on the local market, both for supplying and obtaining goods and services, and less on direct sales to foreign markets (Statistics Denmark & OECD, 2017; Chong et al., 2019). For both independent SMEs and large enterprises, growth in the share of international traders was similar in the period 2014–2019.
There is a major difference between the two groups mainly in the share of two-way traders. Just 7% of independent SMEs were two-way traders, against 65% of large enterprises. Two-way traders are by definition the companies that are most strongly and directly interconnected in global value chains (Statistics Denmark & OECD, 2017). Two-way trade generally increases with the size of the company (Van den Berg, 2013).
The percentage of companies that only export or import is comparable in independent SMEs and large enterprises. Around 23% of independent SMEs in the Dutch business economy only imported goods and/or services in 2019, compared to 20% of large enterprises. For both independent SMEs and large enterprises, around 4% were exclusively exporters.
| Grootte | Importer | Exporter | Two-way trader | Not trading internationally |
|---|---|---|---|---|
| Independent SMEs | 22.8 | 3.6 | 7.0 | 66.6 |
| Large enterprises | 20.3 | 3.7 | 64.8 | 11.2 |
For both independent SMEs and large enterprises, the information and communication sector had the most companies that were exclusively active in exports in relative terms in 2019, with 6% for independent SMEs and 7% for large enterprises. There are major differences in the proportions of two-way traders between independent SMEs and large enterprises. In both groups, the manufacturing sector includes the most two-way traders in relative terms. For manufacturing companies in the large enterprise category, more than 80% are two-way traders, while the share is around 17% for independent SMEs. In the independent SME group, most exclusive importers are active in the wholesale and retail trade. The number and share of exclusive importers among large enterprises are highest in accommodation and food services.
5% of international traders are multinationals
In addition to the distinction between independent SMEs and large enterprises, the Dutch business economy can also be broken down according to multinational status. There are increasing numbers of multinationals in the Netherlands, with 26,000 active in the Dutch business economy in 2019, representing 2% of the total.
Of all the companies engaged in international trade, more than 5% are multinationals. Compared to the whole of the Dutch business economy, the share of multinationals in the total number of international traders is therefore above average. Figure 7.3.8 in Chapter 7 of this publication shows that the share of multinationals in the international trade in goods and services is also large. These two groups (multinational versus non-multinational) differ in the extent to which they do or do not trade internationally. Whereas 33% of non-multinationals did business abroad in 2019, this share was 88% for multinationals. Multinationals are usually very knowledgeable about foreign markets abroad through their parent companies or subsidiaries.
Statistics Netherlands distinguishes between Dutch and foreign-owned multinationals. A Dutch multinational is a company under Dutch control with subsidiaries (majority stakes) abroad. A foreign multinational is a subsidiary based in the Netherlands that is ultimately controlled from abroad. Of the multinationals, 53% were under foreign control and 47% were in Dutch hands. As regards type of trader (exclusive importer, exclusive exporter, two-way-trader, not an international trader), the proportions of the various status types are similar for both Dutch and foreign multinationals. Both types of multinational are most likely to be in the two-way trader category.
From 2014 to 2019, the number of Dutch multinationals rose by 4%, while the number of foreign multinationals went up by 11%. The number of international traders rose for both types of company in the same period. Dutch multinationals saw a rise of 10%, while multinationals under foreign control had around 15% more international traders in 2019 than in 2014.
3.3The internationally active business economy
The previous section focused on the international traders in the Dutch business economy. This section examines internationally active companies in more detail. This concerns not only companies with imports and/or exports, but also includes the multinationals. These are companies with a parent and/or subsidiary abroad, so they are by definition internationally active. Most multinationals also trade internationally, but a small share (12%) had no imports or exports in 2019. In 2019, there were more than 445,000 companies in the Dutch business economy that were active internationally. These are the international traders from section 3.2, as well as some multinationals that did not have any international trade in 2019.
Table 3.3.1 gives a number of key indicators for the internationally active business economy. This shows that the vast majority of companies in the internationally active business economy in the Netherlands belong to the wholesale and retail trade. Many companies engaged in business services are also internationally active. On average, nearly 6% of internationally active companies have a parent company or subsidiary abroad. This share is substantially higher in the mining and quarrying, energy, and water and waste management sectors. However, these are only small sectors as regards the number of companies involved.
| Number of internationally active enterprises | Share of multinationals | Share of exporters | Productivity | Average wage | |
|---|---|---|---|---|---|
| Sector | % | % | 1,000 euros per employed person per year | euros per hour | |
| Mining and quarrying | 265 | 41.5 | 64.2 | 597 | 40 |
| Manufacturing | 34,615 | 11.3 | 49.6 | 105 | 26 |
| Energy supply | 480 | 28.1 | 29.2 | 298 | 33 |
| Water supply | 825 | 18.2 | 53.3 | 113 | 25 |
| Construction | 37,825 | 2.7 | 16.7 | 85 | 25 |
| Wholesale and retail trade | 137,895 | 6.5 | 37.9 | 69 | 21 |
| Transportation and storage | 16,980 | 9.8 | 42.1 | 86 | 23 |
| Accommodation and food services | 19,905 | 1.7 | 5.1 | 31 | 15 |
| Information and communication | 46,550 | 5.8 | 35.3 | 105 | 31 |
| Real estate activities | 6,595 | 12.2 | 12.5 | 219 | 28 |
| Specialised business services | 116,135 | 4.0 | 32.6 | 87 | 31 |
| Renting/leasing and other business services | 23,475 | 6.3 | 28.4 | 42 | 18 |
| Repair of personal and household goods | 3,670 | 0.8 | 17.4 | 43 | 18 |
| Total internationally active business economy | 445,220 | 5.8 | 33.0 | 76 | 24 |
Most companies are only active as importers, while on average 33% of internationally active companies are also involved in exports.noot4 Only in mining and quarrying (64%), and water and waste management (53%) are more than half of the internationally active companies engaged in exports (or imports and exports).noot5
Various researchers have shown that there is a positive relationship between international trade and productivity, though the underlying mechanism is still under discussion. On the one hand, international trade can generate learning effects (spillovers), for example in the field of technology, which make companies more productive (Keller & Yeaple, 2003). On the other hand, there may also be preselection by the companies themselves: those that start trading are already more productive than comparable businesses that do not choose to do so or that fail to break into the international market (Bernard & Jensen, 1999; Melitz, 2003). Research for Dutch companies also shows that the internationally active business economy is more productive than the total business economy in the Netherlands, with the results indicating self-selection (Kox & Rojas-Romagosa, 2010).
Table 3.3.1 shows productivity by sector: Table 3.5 in the set of tables (to be found on the home page of this publication) also sets out the productivity of the whole Dutch business economy. This shows that internationally active Dutch companies are more productive than the totality of companies in the Dutch business economy. In 2019, the productivity of the Dutch business economy as a whole was around €72,000 per employed person, while for the internationally active companies, the figure was €76,000. In addition, the productivity of companies that are active internationally grew somewhat faster in 2019. It rose by around 8.5% compared to 2018, while the productivity of the business economy as a whole grew by around 7.6%. Because no price developments are included here, it is not possible to compare the developments over time by sector. There are significant differences in productivity between sectors, as can be seen in Table 3.3.1. For all sectors individually, productivity is also similar or higher for internationally active companies than for the Dutch business economy as a whole.
The average gross hourly wage at internationally active companies was around €24 in 2019 – the same as in the previous year. Wages are highest in mining and quarrying, which is traditionally a sector with specialised staff and high salaries (CBS, 2021). Wages are lowest in accommodation and food services, and this is undoubtedly linked to the age structure of the people employed in this sector, who include many school pupils and students.
Most internationally active companies have been in existence for 10 years or longer
Internationally active companies can also be distinguished by age (Figure 3.3.2). Most companies that are internationally active have been in existence for 10 years or more. Some 44% have been in operation for 10 years or more, nearly 22% for between 5 and 10 years, and the other 34% have been in existence for less than 5 years. These proportions are comparable to those of previous years. Looking at the sectors, it is notable that in relative terms, manufacturing has the largest number of internationally active companies that are 10 years old or more (57%). The construction sector and the transportation and storage sector also include relatively large numbers of internationally active companies that have been in existence for 10 years or longer. The percentage of internationally active companies that are under 5 years old is never higher than 40% in any of the sectors.
| Bedrijfstak | Under 5 yrs | 5 to 9 yrs | 10 yrs and over |
|---|---|---|---|
| Manufacturing | 26.3 | 16.9 | 56.8 |
| Construction | 29.7 | 19.2 | 51.1 |
| Wholesale and retail trade | 32.2 | 19.2 | 48.6 |
| Transportation and storage | 29.7 | 18.0 | 52.3 |
| Accommodation and food services | 36.1 | 20.4 | 43.5 |
| Information and communication | 37.9 | 26.0 | 36.1 |
| Real estate activities | 35.3 | 19.9 | 45.0 |
| Specialised business services | 38.1 | 26.0 | 35.9 |
| Rental and other business services | 37.9 | 22.7 | 39.3 |
| Other sectors | 29.8 | 21.9 | 48.5 |
| . | . | . | |
| Total internationally active business economy |
34.3 | 21.6 | 44.1 |
3.4Dynamics of exporters: born globals
The group of companies that export goods or services abroad is extremely diverse and subject to strong dynamic forces. Every year there are new arrivals and there are also companies that, voluntarily or out of necessity, close their doors to international trade.
One in four new exporters is a born global
In 2019, more than 18,400 companiesnoot6 withdrew from the international market as exporters (Figure 3.4.1). There are various reasons why companies make this decision. Conversely, more than 32,000 companiesnoot7 started exporting in 2019. These are companies that had not previously exported but that did begin to do so in 2019, for example because they received orders from abroad, the domestic market became too small or they were driven by the competition to start exporting (CBS, 2019a).
| Jaar | Dynamiek | Discontinuing exporters | Born globals | Other starters |
|---|---|---|---|---|
| 2019 | Discontinuing exporters, 2019 | 18.4 | . | . |
| 2019 | Starting exporters, 2019 | . | 7.9 | 24.1 |
| 2018 | Discontinuing exporters, 2018 | 19.1 | . | . |
| 2018 | Starting exporters, 2018 | . | 7.3 | 22.5 |
| 2017 | Discontinuing exporters, 2017 | 15.8 | . | . |
| 2017 | Starting exporters, 2017 | . | 7.1 | 22.9 |
The internationalisation of companies is often seen as a gradual process (Lopez et al., 2009; Sui & Baum, 2014). Companies initially grow in the domestic market and then gradually expand the scope of their international activities. In this way, companies can build up their knowledge of foreign markets and will then be better at managing the risks associated with exporting (Cremers et al., 2019). However, there are other ways in which companies internationalise. A special kind of starting exporter is known as a born global. These are businesses that immediately start exporting goods and/or services within a year of being founded. A quarter of starting exporters in 2019 can be characterised as born globals. In that year, around 7,900 companies achieved a proportion of their sales abroad soon after being set up. Born globals are characterised by their ability to overcome the initial barriers associated with entering foreign markets without first establishing a strong presence in their home market (Ferguson et al., 2021).
The number of discontinuing and starting exporters rose in 2019 compared to 2017. This growth can also be seen in the number of born globals (Figure 3.4.1). There were 7,000 born globals in 2017 and 850 more in 2019. This means that the number of born globals has grown faster in percentage terms than the number of starting exporters. As a result, the share of born globals in the total number of starting exporters in 2019 was higher than in 2017.
In Cremers et al. (2019), the characteristics of born globals are explored in greater detail. For example, born globals have on average more export destinations, more trade relations and a higher turnover from exports than the average starting exporter. Born globals also grow faster than other starting exporters in the years following their entry into the export market. In addition, born globals have a better chance of survival than other starting exporters.
36% of born globals active in business services
Within the group of exporters of goods and/or services in 2019, most starting and discontinuing exporters were active in specialised business services, wholesale and retail trade, and information and communication. It is also in these sectors that the largest number of born globals are active (see Infographic at the beginning of this section). In specialised business services, there are 2,900 companies that were set up in 2019 and that immediately started to export goods or services. This represents 27% of the 10,700 starting exporters in this sector. The share of born globals in the total number of starting exporters is similar in the wholesale and retail trade (25.7%) and in information and communication (26.9%).
Slightly under two-thirds of born globals start operations in specialised business services or the wholesale and retail trade. Information and communication is in 3rd place, with one in eight of born globals active in the sector in 2019.
3.5Internationally active entrepreneurs highlighted
This section looks in more detail at the entrepreneurs behind internationally active companies. Entrepreneurs are people carrying out work on their own account or at their own risk in their own business or practice (independent entrepreneurs), or are owners of a company and employed by the company as director (owner-managers). In the Dutch business economy, there were approximately 187,000 entrepreneursnoot8 who were internationally active in 2019, or around 18% of all entrepreneurs in the Dutch business economy. Of those internationally active entrepreneurs, slightly more than a quarter were women (25.3%), which was a decline of 1 percentage point from 2018. The share of female entrepreneurs was therefore slightly lower than for the group of entrepreneurs who are not active internationally (26.8%).
Although significantly more men are internationally active, women are equally active in relative terms when the number of female entrepreneurs who are internationally active is compared to the total number of female entrepreneurs. There may be many more male entrepreneurs in total, but a similar proportion of men and women are active in the international market. Figure 3.5.1 shows that of all male entrepreneurs in 2019, about 18% were internationally active, while the share among women was 17%. It is also noteworthy that there has been a slight decline in recent years in the extent to which both men and women are internationally active. This is mainly because the total number of entrepreneurs has been increasing more rapidly.
| Geslacht | 2017 | 2018 | 2019 |
|---|---|---|---|
| Male internationally active entrepreneurs | 18.4 | 18.0 | 17.9 |
| Female internationally active entrepreneurs | 17.3 | 17.0 | 16.8 |
Figure 3.5.2 shows that there are differences in the sectors in which male and female entrepreneurs are internationally active. The largest share of both men and women are internationally active in the wholesale and retail trade. This sector frequently acts as an intermediate link in companies’ national and international supply chains (CBS, 2019b). In 2019, more than half of internationally active female entrepreneurs traded in goods and/or services or headed a multinational in this sector, against 44% of male entrepreneurs. However, this share has declined for both men (down by 1 percentage point) and women (down by 2 percentage points) compared to 2017. The share of internationally active female entrepreneurs in specialised business services and accommodation and food services is also higher than that of men. The reverse is true in the construction sector (9%) and the information and communication sector (8%). In absolute terms, among internationally active entrepreneurs, there are at least twice as many men as women in all sectors of the Dutch business economy.
| Sector | Male internationally active entrepreneurs | Female internationally active entrepreneurs |
|---|---|---|
| Manufacturing | 10.3 | 7.6 |
| Construction | 8.5 | 3.8 |
| Wholesale and retail trade | 43.7 | 53.7 |
| Transportation and storage | 5.1 | 4.2 |
| Accommodation and food services | 3.1 | 4.5 |
| Information and communication | 7.6 | 3.3 |
| Real estate activities | 0.9 | 0.7 |
| Specialised business services | 15.8 | 17.4 |
| Renting/leasing and other business services |
4.0 | 4.0 |
| Other sectors | 1.0 | 0.7 |
Figure 3.5.3 shows that the extent to which entrepreneurs are internationally active is age-related. The proportion of male entrepreneurs who are internationally active increases up to and including the 45–54 age category and then declines. Women only become less internationally active from the age of 65. Among entrepreneurs aged under 25 and over 65, women are more often internationally active than men. Childcare may possibly play a role in this, as it is mainly between these two age categories that people look after children. In general, women more often take on the childcare responsibilities and it is more difficult for them than for men to achieve a work-life balance (Weerden & Martens, 2018).
| Leeftijdscategorie | Male internationally active entrepreneurs | Female internationally active entrepreneurs |
|---|---|---|
| 15 to 24 yrs | 6.2 | 6.6 |
| 25 to 34 yrs | 12.7 | 11.5 |
| 35 to 44 yrs | 18.2 | 15.8 |
| 45 to 54 yrs | 22.5 | 19.9 |
| 55 to 64 yrs | 21.3 | 20.6 |
| 65 yrs and over | 16.1 | 18.9 |
Figure 3.5.4 shows that there are also differences between men and women as regards trade value. The median import and export value of companies headed by a female entrepreneur is lower than for male entrepreneurs. This applies to both the trade in goods and in services. The median value of goods exported by female entrepreneurs in 2019 was about €10,000 lower (–19%) than that of male entrepreneurs. This gap of €10,000 can also be seen in the median trade value of service exports, where it represents a difference of about 25%. These value differences probably partly reflect differences in the sectors in which men and women are internationally active (Figure 3.5.2). Compared to 2017, median goods exports declined by about 4% for both men and women. Median service exports also decreased in this period for companies headed by female entrepreneurs (–3%), but they increased for enterprises with male entrepreneurs (+6%).
| Handelsstroom | Male internationally active entrepreneurs | Female internationally active entrepreneurs |
|---|---|---|
| Goods imports | 44.03 | 35.18 |
| Goods exports | 53.08 | 42.97 |
| Service imports | 19.89 | 16.62 |
| Service exports | 37.95 | 28.34 |
3.6Characteristics of employees and dependence on imports
This section compares the characteristics of employees of companies that have production processes or turnover which depend to a greater or lesser extent on imports or exports of goods. A company’s dependence on imports or exports is measured on the basis of import or export intensity. These are calculated by dividing the total import or export value of goods by the total turnover.noot9 Companies without imports or exports are not included in these analyses.
In 2019, a total of 2.7 million full-time equivalents (FTEs) were employed by companies with imports and 1.9 million FTEs by companies with exports. Of these, relatively few worked for companies where the share of imports or exports in relation to turnover was higher than 25% (Figure 3.6.1). Of the businesses that import, the vast majority (80%) of FTEs are at companies with an import intensity of at most 25%. The picture is similar for export intensity, at 76% of FTEs. In other words, most of the working population is employed by the category of companies that is least directly dependent on importing or exporting goods. Figure 3.6.1 also shows that the share of men in the total number of FTEs is considerably higher than that of women. This is true for both imports and exports for all levels of intensity. Factors that play a role here are that men rather than women are more often employed by companies in the Dutch private sector and by companies that are internationally active, and that women are more often employed in the non-profit sector.
| categorie | Women | Men |
|---|---|---|
| 0% - 25% | 631 | 1519 |
| 25% - 50% | 103 | 252 |
| 50% - 75% | 42 | 89 |
| 75% - 100% | 9 | 28 |
| Only enterprises that import are included here. This means that enterprises in the 0%-25% category have an import intensity of more than 0% and less than 25%. | ||
Employees at companies with a relatively high ratio of goods imports or exports to turnover earn higher wages on average (Figure 3.6.2). The average gross hourly wage at companies with an import intensity no higher than 25% was more than €21 in 2019.noot10 In comparison, companies with an import intensity of more than 75% paid on average nearly €7 more per hour. The picture is similar for exports, though the difference between the two extremes of export intensity is slightly smaller, at €4.50 per hour. These wage gaps may be related to differences according to sector and education, which are generally associated with differences in productivity (see also Table 3.3.1).
| Indicator | 0% - 25% | 25% - 50% | 50% - 75% | 75% - 100% |
|---|---|---|---|---|
| Import intensity | 21.2 | 23.1 | 22.7 | 28.0 |
| Export intensity | 21.6 | 24.3 | 23.8 | 26.1 |
Part of the wage gap could also be due to a difference in the age of the workforce (Figure 3.6.3). This is because companies that are more dependent on direct imports or exports employ older workers on average.noot11 Employees who work for companies with a ratio of imports to turnover that is no more than 25% are on average more than three years younger than employees at companies with an import intensity of more than 75%. This is also the case for the distribution according to export intensity.
| Indicator | 0% - 25% | 25% - 50% | 50% - 75% | 75% - 100% |
|---|---|---|---|---|
| Import intensity | 39.0 | 40.1 | 40.6 | 42.2 |
| Export intensity | 39.2 | 42.0 | 41.1 | 42.6 |
3.7References
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Noten
In defining the types of international traders, no minimum threshold was used to filter out small traders. Importers (exporters) trade in goods and/or services; a two-way trader is active in both importing and exporting goods and/or services.
Agriculture, forestry and fishing (A), financial institutions (K), public administration (O), education (P), health care (Q), culture, sports and recreation (R), ideological and political organisations (division 94), wellness and funeral services (division 96), households (T) and extraterritorial organisations and bodies (U) are therefore outside the Dutch business economy.
Of all sectors, mining and quarrying had the highest share of exclusive exporters, at 9%. However, it must be emphasised that this is a small sector with regard to the number of companies it includes. Mining and quarrying involved some 550 companies in 2019, which is only 0.04% of the total Dutch business economy.
The column ‘share of exporters’ in Table 3.3.1 contains the companies that only export as well as the two-way traders. The remaining share refers to the internationally active companies that only import and the non-trading multinationals.
Both mining and quarrying, and water and waste management are very small sectors, with only a few hundred internationally active companies, which can easily bring about striking results.
A discontinuing exporter is a company that did not export goods or services in 2019 or in 2018, but that did do so in 2017. The company must still have been in existence in 2019 in order to be listed as a discontinuing exporter.
A starting exporter is a company that exported goods or services in 2019 which it did not export (yet) in 2018 or in 2017, regardless of whether the company already existed in those years.
In defining the types of international entrepreneurs, a minimum threshold of €5,000 was used to filter out the very small internationally active entrepreneurs. In addition, companies may have multiple entrepreneurs and one entrepreneur may have multiple companies.
An important note is that this method looks exclusively at direct import and export dependency, and therefore does not consider indirect dependencies. An example of an indirect dependency is a Dutch company that sells intermediate goods to another Dutch company, which uses them to manufacture goods that it then exports. Another example is a Dutch company that buys goods from a Dutch wholesaler that had imported those goods from abroad.
The average gross hourly wage has been calculated here as a weighted average of the median gross hourly wages at the various companies. The weightings have been determined on the basis of business size in full-time equivalents. The calculation of gross hourly wages also takes into account holiday supplements, year-end payments, the number of overtime hours and the compensation for those hours.
The average age is a weighted average of the median ages at the different companies. As with gross hourly wages, the weighting has been determined on the basis of business size in full-time equivalents.