Characteristics of enterprises that trade internationally
This chapter examines the characteristics of enterprises and entrepreneurs that trade internationally. First, it discusses the Dutch business economy from the perspective of trade: to what extent do enterprises export, import or engage in both activities? What proportion of enterprises trading internationally are independent SMEs or large enterprises, and how does this differ between industries? Next is a separate discussion on the trade in goods and services from a business perspective. The chapter then highlights entrepreneurs trading internationally: what proportion are women and how does this figure vary by age category and sector? Finally, we compare the characteristics of employees of enterprises with production processes that depend to a greater or lesser extent on imports or exports of goods.
5.1Key findings
Fewer enterprises trading internationally in 2020
In 2020, there were 406,000 Dutch enterprises that traded goods or services with foreign countries, thus constituting 30% of the total Dutch business economy. This was 37,000 fewer enterprises than in 2019, representing an 8% decline. Close to two-thirds of the international traders only imported goods and/or services, while 11% only exported goods and/or services. The remaining quarter both imported and exported goods and/or services (two-way traders). Of all the internationally operating enterprises, nearly one in three is active in the wholesale and retail trade sector.
A small group of international traders is responsible for the bulk of the trade value. The 25% two-way traders accounted for more than 97% of the total export value and 92% of the import value. Moreover, within this group of two-way traders, the bulk of these values is concentrated among large enterprises and independent SMEs with foreign subsidiaries.
International trade in goods
In 2021, the export of goods recovered from a dip in 2020. The value of goods exports increased in almost all sectors, with the highest increase in the transportation and storage sector (77%). In 2021, large enterprises exported over three times as much in terms of value as independent SMEs. The strongest growth in the export of goods was achieved by already exporting enterprises that started exporting more of their existing products to established destination countries, and not by enterprises starting their export activities for the first time.
In 2021, the import of goods also recovered from a dip in 2020. The growth in the import value of independent SMEs without subsidiaries abroad was twice as high as that of large enterprises.
International trade in services
The total value of the export of services fell by 4% in 2020. The decline in imports was even greater (6%). The number of trading enterprises that import services declined by 17%, up to 236,000. The number of service exporters, on the other hand, remained unchanged at 75,000. More than nine out of ten trading enterprises that import services do so exclusively from other EU countries. Only 5% of the enterprises operating as independent SMEs trade in services with non-EU countries. A similar pattern applies to exporters of services.
On average, Dutch enterprises export more services than they import. As with the trade in goods, there is only a small group of international traders responsible for the bulk of the export and import value of services. Moreover, the average traded value per enterprise was many times higher for exporters than for importers.
Entrepreneurs and employees working for international traders
In the Dutch business economy, a total of approximately 411,000 entrepreneurs headed an enterprise in 2020 that trades internationally in goods and/or services. Around 30% of the Dutch business economy was thus trading internationally, which represents a 4 percentage point decrease on 2019.
Of all male entrepreneurs in the business economy in 2020, about 30% were trading internationally, while the share among women was 31%. Therefore, the likelihood of an entrepreneur trading internationally does not appear to be strongly dependent on sex. However, the median export value in the trade of goods of female-led enterprises in 2020 was nearly €13,000 lower than that of businesses led by male entrepreneurs.
In 2020, a total of 2.5 million full-time equivalents (FTEs) were employed by importers and 1.8 million FTEs by enterprises with exports. Employees at enterprises with a relatively high ratio of goods imports or goods exports to turnover earn higher wages on average as opposed to employees at enterprises with lower trade intensities.
5.2Dutch business economy from the perspective of trade
In 2020, the Dutch business economy (see box for more information) comprised more than 1.3 million enterprises. This is 68,000 up on 2019. This group can be divided into one-way importers, one-way exporters, two-way traders (enterprises that import and export), and enterprises not trading in goods or services, thus not trading internationally at all.noot1 Enterprises that belong to the category ‘not an international trader’ focus exclusively on the domestic market.
What is the Dutch (non-financial) business economy?
Enterprises considered part of the Dutch business economy are those listed in the General Business Register (ABR), with an activity classified in sections B to N, excluding K and plus division S95. 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 service activities;
- 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 computers and consumer goods
Three in ten enterprises in the Dutch business economy are international traders
In 2020, 30% of the Dutch business economy (or some 406,000 enterprises) was made up of international traders in goods and/or services. This is almost 37,000 less than in the previous year, while the number of international traders has actually grown in recent years, reaching 442,000 (one in three) in 2019. As a result of the coronavirus crisis, enterprises had been more restricted in their international trade activities in 2020, which may have led to the decline in the number of international traders. The Internationalisation Monitor Q2 2022 focused closely on the barriers and developments of the international trade in services in 2020 and 2021 (CBS, 2022b). Of those international traders in 2020, 64% were exclusively involved in imports, 11% only in exports and 25% were two-way traders (Figure 5.2.1).
| Jaar | Importer | Exporter | Two-way trader | Not trading internationally |
|---|---|---|---|---|
| 2020 | 260 | 46 | 100 | 957 |
| 2019 | 295 | 47 | 101 | 852 |
| 2015 | 231 | 41 | 83 | 738 |
Rising number of non-traders in 2020
In 2020, the Dutch business economy expanded by more than 68,000 enterprises from the previous year (Figure 5.2.1), which was an increase of 5.3%. As in previous years, the Dutch business economy consists for the most part of non-traders. This latter group expanded by more than 100,000 to 957,000 enterprises in 2020. This means that seven out of ten enterprises in the Dutch business economy therefore did not trade with foreign countries in 2020. The composition of the business economy by trading status (whether or not enterprises trade internationally) has somewhat changed compared to 2019. The number of one-way importers dropped (35,000 less) while the number of two-way traders and one-way exporters remained virtually unchanged.
Number of traders grew less fast than the Dutch business economy
Compared to 2015, the total enterprise population in the Dutch business economy had increased by 25% in 2020. Due to the declining number of international traders in the previous year, the number of traders grew less quickly (+14%) than the number of non-traders (+30%) across the entire period (2015–2020).
Despite the decline in the number of importers in 2020, this group of traders experienced the strongest growth in numbers between 2015 and 2020. The percentage increase compared to 2015 was the highest in the number of two-way trading enterprises (+20%). If we not only consider the developments in the last year as a result of the coronavirus crisis, but also look at the entire period from 2015 to 2020, the number of internationally active enterprises has increased. That increase is connected among other things with the increasing number of enterprises in the Dutch business economy, but also with the growing global trade in that period.
Developments such as increasing digitisation have made it easier for enterprises to sell their products across country borders, for example through online platforms, where this was previously too costly or too complicated (Polder & Rooyakkers, 2021). Digitisation 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).
Number of international traders under pressure
The figures from the most recent reporting year show that business trade flows are nevertheless fragile. In 2020, 30% of the enterprises in the Dutch business economy was trading with foreign countries while that share was about 33% in previous years. As a result of the great shock caused by the coronavirus pandemic, many enterprises were temporarily faced with restrictions in their international activities. This is reflected in a decline in the number and share of Dutch enterprises that export and/or import services. Given the upward trend in the trade of goods in 2021, these figures are expected to recover in 2021, although there may also be enterprises that have had to temporarily postpone or permanently halt their trading activities or the expansion thereof. Once enterprises start trading internationally, it is thus by no means a foregone conclusion that trade flows will continue, especially in economically uncertain times.
Enterprises in wholesale and retail trade or manufacturing relatively most often trade internationally
Figure 5.2.1 shows us that in 2020 approximately 30% of the enterprises in the Dutch business economy did business with foreign countries. However, that share varies considerably from one sector to another (Figure 5.2.2). For instance, the share of international traders is above average in the wholesale and retail trade, manufacturing, and information and communication sectors. This share was 47% in wholesale and retail trade. This is not surprising in itself, as enterprises 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 enterprises that trade internationally, nearly one in three are active in the wholesale and retail trade.
Dutch manufacturing is also strongly interconnected with foreign countries: 43% of the manufacturing enterprises traded beyond the borders of the Netherlands in 2020. For example, 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 in terms of their turnover (CBS, 2017). In addition to exports, the sector is also heavily dependent on imports of foreign products (De Boeck, 2017).
Least traders in construction
The share of international traders in construction, at 16%, was significantly lower than in the Dutch business economy as a whole. Nevertheless, the number of international traders in this sector has risen significantly compared to 2015 (+24%). The number of international traders in the accommodation and food services sector is also somewhat lower than average, but increased by 50% in 2015 compared to 2019, to just under 20,000 enterprises. In 2020, the number of traders in the accommodation and food services sector dropped by about 2,000 enterprises. Of these enterprises, 25% were still internationally active within this sector, almost 5 percentage points less than in the previous year.
There are also significant differences between sectors in the proportion of enterprises that exclusively import, exclusively export or enterprises that both import and export, as shown in Figure 5.2.2. Of all sectors, the wholesale and retail trade had the highest share of enterprises in 2020 in relative terms (28%) that were exclusively active in imports, against 19% for the Dutch business economy as a whole. The sector with the highest percentage of enterprises that only engaged in export activities is information and communication (6%).noot3 For the total Dutch business economy, the share is 3.4%. In relative terms, two-way traders were most common in manufacturing, at nearly 19%.
| Bedrijfstak | Importer | Exporter | Two-way trader | Not trading internationally |
|---|---|---|---|---|
| Manufacturing | 20.9 | 3.5 | 18.7 | 56.8 |
| Construction | 12.7 | 1.1 | 1.8 | 84.4 |
| Wholesale and retail trade | 28.2 | 3.3 | 15.5 | 53.1 |
| Transportation and storage | 14.2 | 4.2 | 8.7 | 72.9 |
| Accommodation and food services | 23.9 | 0.6 | 0.7 | 74.8 |
| Information and communication | 22.6 | 5.7 | 9.4 | 62.4 |
| Real estate activities | 16.1 | 1.1 | 1.6 | 81.2 |
| Specialised business services | 15.9 | 4.7 | 4.4 | 75.1 |
| Renting/leasing and other business services | 15 | 2.6 | 3.9 | 78.4 |
| Other sectors | 22.3 | 1.9 | 7.1 | 68.7 |
| . | . | . | . | |
| Dutch business economy | 19.1 | 3.4 | 7.4 | 70.2 |
Within all sectors, the share of international traders in 2020 was on average about 4 percentage points lower than in the previous year. The number of traders declined in all sectors and most significantly among water and waste management (–14%) and enterprises active in renting/leasing and other business services (–13%). In the wholesale and retail trade and manufacturing sectors, the drop in the number of trading enterprises remained limited, at –5% and –4% respectively. It is worth noting that while the number of traders fell least in the wholesale and retail trade sector in percentage terms, the proportion of traders in that sector actually fell more than in the other sectors. This is because the number of non-traders in wholesale and retail trade increased by 18% to almost 148,000 out of 278,000 by 2020.
Decline in traders in 2020 mainly among importers
In all the larger sectors, i.e. manufacturing, wholesale and retail trade, construction, accommodation and food services, information and communication and specialised business services, the decrease in the number of trading enterprises was greatest among those that exclusively import. The number of exporters and two-way traders remained fairly stable in the transportation and storage sector and the information and communication sector, while the number of one-way importers fell by 18% and 16% respectively. In the accommodation and food services sector, the number of two-way traders and exporters fell as sharply as the number of one-way importers (10 or 11%). The growth in the number of enterprises between 2019 and 2020 can be attributed to the growing number of non-traders in all sectors. In 2020, there was even a record number of enterprise creations. The sharpest rise could be seen in the retail trade. This mainly concerned online shops (the publication The State of SMEs, 2021).
Despite the decline in the number of traders between 2019 and 2020, the number of trading enterprises in all sectors is still larger than five years ago. However, the share of trading enterprises in the total enterprise population has decreased compared to 2015 in almost all sectors. This is mainly attributed to the growth of the number of new non-traders, a trend that was already visible in the figures of many sectors in previous years. Only in the accommodation and food services sector and among enterprises active in the sector renting, buying, selling real estate did a larger proportion trade across borders in 2020 than in 2015.
Independent small and medium-sized enterprises (SMEs)
The Dutch business economy can be broken down by activity as well as by enterprise size. A distinction can also be made based on the level of the enterprise’s autonomy; is the enterprise operating autonomously or is it, for example, part of a larger international network? This chapter distinguishes between two types of enterprises: large enterprises and the independent SMEs. The independent small and medium-sized enterprises include all Dutch-owned enterprises employing fewer than 250 people across the whole organisation (in the Netherlands). The independent SMEs are further categorised into enterprises with and without foreign subsidiaries. Large enterprises comprise all Dutch enterprises that are part of a group employing at least 250 people and/or part of a foreign-owned group.
Of nearly 1.4 million enterprises in the total Dutch business economy in 2020, 1.3 million were independent SMEs, 7,000 of which had one or more foreign subsidiaries. Approximately 18,000 were large enterprises. Over 98% were therefore enterprises operating as independent SMEs with no foreign subsidiaries. Of all the enterprises engaged in international trade, around 94% are independent SMEs without subsidiaries abroad, hereinafter referred to as independent SMEs.
89 out of 100 large enterprises trade internationally
Independent SMEs are far less active as international traders than large enterprises (Figure 5.2.3). While seven out of ten independent SMEs did no business with foreign countries in 2020, this was true of only 11% of large enterprises. It is generally known that small enterprises trade less in international markets than large enterprises (Bernard et al., 2007 and 2012). Both large enterprises and independent SMEs encounter various obstacles to entering foreign markets. For example, it is more of an effort for them to find local partners; they 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. However, large and productive enterprises are more often able to bear such costs and risks than independent SMEs. The larger the enterprise, 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).
Number of traders among independent SMEs and large enterprises has increased since 2015
For both independent SMEs and large enterprises, growth in the share of international traders has increased by 14% in the period 2015–2020. The number of international traders among independent SMEs with foreign subsidiaries increased by 7% in that same period. Both large enterprises and independent SMEs with subsidiaries saw their share of traders increase by a few percentage points between 2015 and 2020. In contrast, the proportion of independent SME traders without foreign subsidiaries decreased.
There is a major difference between the two groups mainly in the share of two-way traders. Only 6% of independent SMEs were two-way traders, against 64% of large enterprises and even 71% of independent SMEs with foreign subsidiaries. This demonstrates that independent SMEs with subsidiaries abroad may be more similar to large enterprises in terms of international activities than independent SMEs without a parent company or subsidiary abroad. Two-way traders are by definition the enterprises 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 enterprise (Van den Berg, 2013).
Ratio one-way importers and exporters varies in terms of enterprise size
The total percentage of enterprises that only export or import is comparable in the three groups. However, the ratio between one-way importers and one-way exporters varies. Around 19% of independent SMEs in the Dutch business economy only imported goods and/or services in 2020, compared to 20% of large enterprises and 16% of independent SMEs with foreign subsidiaries. For both independent SMEs with or without subsidiaries and large enterprises, 3% to 5% were one-way exporters.
| Grootte | Importer | Exporter | Two-way trader | Not trading internationally |
|---|---|---|---|---|
| Independent SMEs without foreign subsidiaries |
19.1 | 3.3 | 6.2 | 71.4 |
| Independent SMEs with foreign subsidiaries |
15.8 | 4.7 | 70.7 | 8.8 |
| Large enterprises | 20.4 | 3.9 | 64.2 | 11.4 |
Large enterprises most frequently both importer and exporter
For both independent SMEs and large enterprises, the information and communication sector had relatively the most enterprises that were exclusively active in exports in 2020. There are major differences in the proportions of two-way traders between independent SMEs and large enterprises. For both the independent SMEs and the large enterprises, the manufacturing sector includes the most two-way traders in relative terms. For manufacturing enterprises in the large enterprise category, more than eight out of ten are two-way traders, while the share is around 15% for independent SMEs without subsidiaries abroad. In the independent SME group, most one-way importers are active in the wholesale and retail trade. The accommodation and food services top the charts among large enterprises, where seven out of ten large enterprises were one-way importers in 2020.
Small group of two-way traders representing majority export value
Figure 5.2.1 showed that two-way traders only represented a small portion (25%) of the internationally active enterprise population. However, if one looks at the value traded internationally by these enterprises, it is a multiple of the value traded by one-way exporters or one-way importers (Figure 5.2.4). Two-way traders turn out to account for more than 97% of the total export value for both goods and services and over 92% of the total import value.
| Handelsstatus | Trade value |
|---|---|
| Goods trade | . |
| One-way exporters | 3.6 |
| Two-way traders, exports |
329.5 |
| One-way importers | 21.2 |
| Two-way traders, imports |
282.0 |
| Service trade | . |
| One-way exporters | 9.4 |
| Two-way traders, exports |
150.1 |
| One-way importers | 13.5 |
| Two-way traders, imports |
135.2 |
5.3International traders in goods
This section specifically discusses enterprises that trade in goods internationally. It focuses both on the number of enterprises and the value they trade, and on the differences between the independent SMEs and large enterprises.
Both the export and import of goods recovered from a dip in 2020 and even experienced growth
Imports of goods totalled €527 billion in 2021. This amounts to a 24% growth compared to 2020. The export value showed a similar growth, when the exports of goods totalled €587 billion in 2021.
The import value of large enterprises remains high, but rises less steeply
The value of goods imports of the Dutch business economy differs substantially in terms of enterprise size. Large enterprises imported goods worth over €267 billion in 2021. This was 2.7 times the aggregate value imported by independent SMEs. Both groups of enterprises experienced a recovery in the import value in 2021 compared to 2020. The growth in the import value of independent SMEs was higher as that of large enterprises, also compared to 2019.
One part of the exports cannot be attributed to independent SMEs or large enterprises. It mainly concerns trade by foreign enterprises that have a Dutch VAT number to report their international trade, but have no physical presence in the Netherlands in the form of, for example, a factory. This part of the exports also showed a growth in 2021.
| Bedrijfsgrootte | 2021* | 2020 | 2019 |
|---|---|---|---|
| Independent SMEs | 98 | 79 | 83 |
| Large enterprises | 267 | 224 | 250 |
| Not attributable | 162 | 120 | 126 |
| 1)A part of the exports cannot be attributed to independent SMEs or large enterprises, because not all traders can be linked to the General Business Register (ABR). | |||
Substantial growth in the large enterprises’ export value of goods
The aggregate value of the goods exports of large enterprises in 2021 was about €317.5 billion, over three times as much as the export value of the independent SMEs (Figure 5.3.2). Academic literature also supports the fact that export value is more often concentrated in large enterprises (Bernard & Jensen, 1995; Bernard, 2004). This is partly explained by the fact that the marginal costs of exporting are often lower for large enterprises. Between 2019 and 2021, the export value of large enterprises increased twice as rapidly as that of independent SMEs. As with the import value, we see a dip in the export value of both types of enterprises in 2020, which is linked to the coronavirus pandemic, among other things.
Domestic exports represent the largest part of the total export value. The re-exports’ share in the export value is about 40% and is comparable for the independent SMEs and large enterprises. Among independent SMEs, re-exports rose more sharply in 2021 than the domestic exports. This was the other way round for large enterprises.
| Bedrijfsgrootte | Jaar | Domestic exports | Re-exports |
|---|---|---|---|
| Independent SMEs without foreign subsidiaries |
2021*, Independent SMEs without foreign subsidiaries |
37 | 22 |
| Independent SMEs without foreign subsidiaries |
2020, Independent SMEs without foreign subsidiaries |
33 | 18 |
| Independent SMEs without foreign subsidiaries |
2019, Independent SMEs without foreign subsidiaries |
34 | 17 |
| Independent SMEs with foreign subsidiaries |
2021*, Independent SMEs with foreign subsidiaries |
21 | 14 |
| Independent SMEs with foreign subsidiaries |
2020, Independent SMEs with foreign subsidiaries |
20 | 12 |
| Independent SMEs with foreign subsidiaries |
2019, Independent SMEs with foreign subsidiaries |
22 | 14 |
| Large enterprises | 2021, Large enterprises | 189 | 128 |
| Large enterprises | 2020, Large enterprises | 145 | 106 |
| Large enterprises | 2019, Large enterprises | 155 | 108 |
| Not attributable | 2021*, Not attributable | 79 | 95 |
| Not attributable | 2020, Not attributable | 67 | 82 |
| Not attributable | 2019, Not attributable | 76 | 89 |
| 1)A part of the exports cannot be attributed to independent SMEs or large enterprises, because not all traders can be linked to the General Business Register (ABR). | |||
Independent SMEs with foreign subsidiaries have higher goods exports on average
As the box in the previous section described, a small proportion of enterprises within the independent SME group has one or more subsidiaries abroad. These so-called Dutch multinationals are often two-way traders. This is linked to more international experience and better knowledge of international networks than independent SMEs that do not have any subsidiaries abroad. Chapter 8 elaborates on the role of multinationals in Dutch imports and exports.
Figure 5.3.2 shows that the total export value of the independent SMEs with foreign subsidiaries is smaller than that of the independent SMEs without foreign subsidiaries. However, as there are far fewer independent SMEs with foreign subsidiaries than without, the average trade value of the group with foreign subsidiaries is significantly higher. As an example, independent SMEs with foreign subsidiaries had an average goods export value of €8 million, compared to €0.6 million for independent SMEs without subsidiaries.
Goods exports in the manufacturing sector recovered from dip in 2020
Figure 5.3.3 shows that the Dutch goods exports are largely concentrated in two sectors: the wholesale and retail trade (42%) and manufacturing (40%). The goods exports of the manufacturing sector (€165.1 million) consist of 80% domestic goods. The re-exports were slightly higher for wholesale and retail trade (€92.1 million) than the domestic exports (€82.7 million). The goods exports were up in 2021 in almost all sectors. The sharpest increase could be seen in the transportation and storage sector (77%).noot4
| Bedrijfstak | 2021* | 2020 | 2019 |
|---|---|---|---|
| Wholesale and retail trade | 175 | 145 | 147 |
| Manufacturing | 165 | 138 | 151 |
| Transportation and storage | 30 | 18 | 17 |
| Energy | 15 | 6 | 9 |
| Specialised business services |
15 | 16 | 16 |
| Information and communication |
5 | 4 | 4 |
| Real estate activities | 3 | 2 | 2 |
| Other | 5 | 4 | 4 |
Figure 5.3.4 further splits the exports of manufacturing enterprises into the ten largest sectors in terms of export value. In 2021, the value of the goods exports of the manufacturing sector recovered from a dip in 2020. The steepest rise was in the petroleum industry (54%), which went hand in hand with the rise in prices of the products manufactured in this industry.noot5 Also the chemical industry (34%) and the metal products industry (29%) showed a relatively large growth in exports. Some relatively smaller industries within manufacturing (not shown in the figure) suffered a fall in goods exports. The exports in the tobacco products industry and the repair and installation of machinery and equipment industry, for example, saw their exports contract by 10% and 4% respectively. The export value of the clothing industry remained virtually unchanged.
| Subsector | 2021* | 2020 | 2019 |
|---|---|---|---|
| Machinery | 30 | 25 | 26 |
| Food and tobacco | 30 | 28 | 28 |
| Chemical | 28 | 21 | 24 |
| Petroleum | 11 | 7 | 12 |
| Metal products | 8 | 6 | 7 |
| Electrotechnical | 7 | 7 | 7 |
| Basic metals | 7 | 5 | 7 |
| Pharmaceutical | 6 | 5 | 5 |
| Motor vehicle and trailer |
6 | 5 | 7 |
| Other manufacturing industries |
31 | 28 | 29 |
Average export value per enterprise to Germany remains high
Figure 5.3.5 shows the main countries to which Dutch exporters supply goods. Belgium and Germany are important trading partners, both for exporters among the independent SMEs and the large enterprises. Although Germany is the largest export destination for Dutch goods in terms of value, considerably more exporters are trading with Belgium.
In total, over 63,500 exporters exported goods to Belgium in 2021, of which 10% were large enterprises. Exports to Germany, on the other hand, were carried out by some 51,000 exporters, of which 12% were large enterprises.
| Land | Independent SMEs | Large enterprises |
|---|---|---|
| Belgium | 57.377 | 6.167 |
| Germany | 44.940 | 6.040 |
| United Kingdom | 11.487 | 5.121 |
| France | 20.065 | 4.616 |
| Spain | 13.405 | 3.850 |
| Italy | 12.806 | 3.716 |
| Poland | 13.343 | 3.465 |
| Switzerland | 8.096 | 3.230 |
| Denmark | 11.552 | 3.215 |
| Sweden | 10.099 | 3.146 |
Import value of most sectors recovered from a decline in 2020
The manufacturing and wholesale and retail trade sectors were also leading in the import of goods. As with exports, following a decline in 2020, the value of imports increased in most sectors in 2021. The largest growth was recorded in the energy industry (180%).
| Bedrijfstak | 2021* | 2020 | 2019 |
|---|---|---|---|
| Wholesale and retail trade | 198 | 170 | 175 |
| Manufacturing | 100 | 89 | 105 |
| Energy | 21 | 8 | 11 |
| Transportation and storage | 19 | 15 | 18 |
| Real estate activities | 13 | 10 | 12 |
| Information and communication |
5 | 5 | 4 |
| Specialised business services |
3 | 3 | 3 |
| Construction | 3 | 3 | 3 |
| Water and waste management |
1 | 1 | 1 |
| Other sectors | 1 | 1 | 1 |
5.4International traders in services
Less importers of services; number of exporters stable
In 2020, there were 75,000 exporters and 236,000 importers of services.noot6 The coronavirus crisis weighed heavily on the import of services. The number of trading enterprises that imported services declined by 17% compared to 2019. However, the number of exporters of services remained virtually unchanged during that period. The decline in the number of internationally active service providers was only observed in the most recent year (2020). The number of trading enterprises that exported services was still 23% larger in 2020 compared to 2015. The number of service importers increased by 7% during that period.
More than 9 out of 10 importers of services are among the independent SMEs
Figure 5.4.1 shows the import value and export value of services and the number of importers and exporters. Of almost 236,000 trading enterprises that imported services in 2020, 92% were operating as independent SMEs, 5% were large enterprises and 3% were independent SMEs with foreign subsidiaries. The bulk of the trading enterprises that imported services only imported services from other EU countries (93%). Among large enterprises, the share of enterprises that only, or also, traded in services outside the EU was significantly higher (20%) than among independent SMEs (6%).
| Grootte | Intra-EU trade only | Extra-EU trade only | Both |
|---|---|---|---|
| Independent SMEs without foreign subsidiaries |
. | . | . |
| Import value | 52.7 | 2.2 | 45.2 |
| Number of importers | 94.5 | 0.1 | 5.4 |
| Independent SMEs with foreign subsidiaries |
. | . | . |
| Import value | 30.3 | 3.4 | 66.3 |
| Number of importers | 83.8 | 0.4 | 15.8 |
| Large enterprises | . | . | . |
| Import value | 14.9 | 0.8 | 84.3 |
| Number of importers | 80.5 | 0.5 | 19.0 |
Export of services to other EU countries
The 75,000 Dutch enterprises that exported services mostly did so exclusively within the EU, similar to the import of services. Of the exporters of services, 85% belonged to independent SMEs and 10% to large enterprises (Figure 5.4.2). Of the trading enterprises engaged in the export of services, 87% only exported to other countries within the EU, while 12% exported both in and outside the EU. At 25% and 22%, the percentage of large enterprises and independent SMEs with foreign subsidiaries that also exported services outside the EU was higher than the percentage among the independent SMEs without foreign subsidiaries (11%).
| Grootte | Intra-EU trade only | Extra-EU trade only | Both |
|---|---|---|---|
| Independent SMEs without foreign subsidiaries |
. | . | . |
| Export value | 57.4 | 0.0 | 42.6 |
| Number of exporters | 89.0 | 0.4 | 10.6 |
| Independent SMEs with foreign subsidiaries |
. | . | . |
| Export value | 32.5 | 0.9 | 66.7 |
| Number of exporters | 78.4 | 0.4 | 21.1 |
| Large enterprises | . | . | . |
| Export value | 16.1 | 4.3 | 79.6 |
| Number of exporters | 74.7 | 0.7 | 24.7 |
Decline in export value in 2020 despite similar number of exporters of services
In 2020, the Dutch business economy exported €149 billion in services and imported €160 billion in services. A total of 75,000 enterprises were responsible for the aggregate value in exports, which is 161,000 less than for the total import value. This demonstrates that, as in previous years, the average traded value per enterprise is many times higher for exporters than importers. However, the total export value in 2020 was in fact 4% lower than in 2019. As, despite the coronavirus crisis between 2019 and 2020, the number of exporters of services more or less remained the same, this means that the average export value per enterprise was lower. The import value fell by 6% in 2020, which is a sharper decline than for the export value, though relatively less steep than that of the number of importers (17% less in 2020).
Looking at a somewhat longer period, it appears that the trade in services is still on the rise. Total export value of services of the Dutch business economy rose by 32% between 2015 and 2020. The import value increased by 30%.
Large enterprises representing bulk of the value of the trade in services
Figure 5.4.3 shows that independent SMEs with and without subsidiaries abroad have been importing and exporting a similar value in services in 2020. This is striking since the number of enterprises with foreign subsidiaries trading in services is only a fraction of the number of trading enterprises without foreign subsidiaries. By contrast, the aggregate value of the imports and exports of large enterprises is many times greater. Over 85% of the total trade value is accounted for by large enterprises. 12,500 large enterprises imported services totalling €131 billion and 7,600 large enterprises exported services with an aggregate value of almost €137 billion.
| Service imports | Service exports | |
|---|---|---|
| Independent SMEs without foreign subsidiaries |
9.3 | 12.3 |
| Independent SMEs with foreign subsidiaries |
8.8 | 11.4 |
| Large enterprises | 131.3 | 136.6 |
Average trading value of large enterprises many times that of independent SMEs
The large difference becomes even more apparent when calculating the average import and export value of the trade in services. The average import value for independent SMEs was €40,000 in 2020. Independent SMEs with foreign subsidiaries imported on average over 35 times as much: €1.5 million. The average import value of large enterprises, at €10.5 million, was even greater by a factor of seven. As stated above, the average export value of enterprises that export services is considerably higher, but even there, the differences between the three types of enterprises are substantial. Independent SMEs without foreign subsidiaries exported for an average of €270,000, independent SME exporters with subsidiaries across the border exported for an amount of €32 million and large enterprises for six times that amount: an average of €192 million.
This illustrates which business types are most important for service trade in the Netherlands. Large enterprises carry a huge weight: 5% of the trading enterprises engaged in importing activities account for 88% of the import value and 10% of the exporters are responsible for 85% of the total export value. Ultimately, both independent SMEs and Dutch large enterprises are net exporters of services: the average export value is several times higher than the average import value for these three groups. This particularly applies to the independent SMEs with no foreign subsidiaries. An average enterprise of this type exports 4.5 times as much in terms of value as it imports.
Independent SMEs that trade with EU countries account for a substantial part of the value
Trading enterprises that import services do so mainly exclusively from countries within the EU (92%). However, trading enterprises that only import from EU countries only represent 20% of the total value of the import of services. Those 8% enterprises that trade in services both in and outside the EU, imported over 80% of the total value of importedservices in 2020. Figure 5.4.1 had already previously shown that the bulk of both independent SMEs and large enterprises only imports services from other EU countries. That same figure also shows that within the independent SME group, those enterprises that exclusively import from the EU (94%) accounted for more than half of all import value. On the other hand, 80% of the large enterprises that only import from the EU contributed a mere 15% to the import value. Among large enterprises, it is mainly those that import from countries outside the EU that contribute to the total import value. This also applies to the independent SMEs with foreign subsidiaries.
High concentration of export of services among small group of traders
A similar situation applies to the value of the export of services (Figure 5.4.2). More that 85% of the enterprises that export services represent ‘only’ 30% of the export value. Approximately 13% of the enterprises that export services both within and outside the EU account for more than three quarters of the total value.
The ratio within the different business types is comparable to imports. Among the independent SME group, more than 55% of the export value is accounted for by enterprises that exclusively export services to other EU countries, while large enterprises that export both within and outside the EU make a substantial contribution to the total export of services. A subtle difference towards enterprises that import services is that the share of enterprises that only export services within the EU is slightly smaller. At the same time, the value that this group adds to the total export value is slightly higher than that of the import of services, relatively speaking. Exporting services exclusively to EU countries is thus slightly more important for the total export value than importing exclusively from EU countries is for the total import value. Nonetheless, the fact remains that a small proportion of the total business economy, i.e. the large enterprises that trade in services both in and outside the EU, is responsible for a significant part of the total value of the trade in services.
Highest import value for large enterprises in wholesale and retail trade
The import of services by enterprises in the wholesale and retail sector had the highest value at €35.6 billion in 2020 (Figure 5.4.4). With 91%, the large enterprises contribute substantially to this sector’s total value. With regard to the import of services by manufacturing enterprises, large enterprises even exceed this share. In that sector, €20.5 billion of the €21.6 billion (95%) is imported by large enterprises and only a mere 3% is imported by the independent SMEs. Among the larger sectors, the transportation and storage sector is an exception to this pattern. In this sector, independent SMEs represent 15% of the total import of services. In the construction sector, the share is even slightly higher at 20%, but the aggregate value is significantly lower than in the other sectors (€1.7 billion).
| Bedrijfstak | Independent SMEs without foreign subsidiaries | Independent SMEs with foreign subsidiaries | Large enterprises |
|---|---|---|---|
| Wholesale and retail trade | 2.0 | 1.1 | 32.5 |
| Information and communication | 1.4 | 1.3 | 28.5 |
| Specialised business services | 1.2 | 1.0 | 28.8 |
| Manufacturing | 0.6 | 0.5 | 20.5 |
| Transportation and storage | 2.4 | 2.1 | 12.0 |
| Renting/leasing and other business services | 1.0 | 2.5 | 6.0 |
Slight increase for the information and communication’s import value in 2020
In 2020, the Dutch business economy’s total import of services was dealt a heavy blow by the coronavirus crisis. In 2020, imports were over 6% lower than in 2019, whereas in previous years there had actually been an upward trend. In 2020, the total import value of services was however still 30% higher than in 2015. Figure 5.4.5 shows that the import of services in wholesale and retail trade, manufacturing and business services had fallen compared to 2019, while the information and communication sector had risen by 1%. ICT services thus proved better equipped against the restrictions that had been imposed and the lockdowns implemented to curb the coronavirus crisis. The slight increase in import value in this industry is attributable to a growth in the trade with countries outside the EU. In 2020, the ICT industry imported less value in terms of services from EU countries than in 2019.
| Bedrijfstak | 2020* | 2019 | 2015 |
|---|---|---|---|
| Wholesale and retail trade | 35.6 | 35.6 | 27.3 |
| Specialised business services | 30.9 | 32.0 | 19.3 |
| Information and communication | 30.8 | 30.7 | 15.3 |
| Manufacturing | 21.6 | 24.0 | 26.1 |
| Transportation and storage | 16.4 | 16.3 | 13.4 |
| Renting/leasing and other business services | 9.6 | 14.7 | 8.2 |
Independent SMEs account for large share of total export value of transport sector
The information and communication sector and the specialised business services sector had by far the highest exports of services in 2020 (Figure 5.4.6). In both sectors, enterprises exported about €39.5 billion worth in services. Large enterprises achieved over 90% and independent SMEs without foreign subsidiaries only 5%. In the transportation and storage sector, the independent SMEs were responsible for a relatively large part of the total export value: independent SMEs without foreign subsidiaries accounted for 16% and independent SMEs with foreign subsidiaries accounted for 12% of the total export value.
| Bedrijfstak | Independent SMEs without foreign subsidiaries | Independent SMEs with foreign subsidiaries | Large enterprises |
|---|---|---|---|
| Information and communication | 1.7 | 1.5 | 36.3 |
| Specialised business services | 2.2 | 1.7 | 35.5 |
| Transportation and storage | 4.4 | 3.2 | 20.4 |
| Wholesale and retail trade | 1.0 | 0.8 | 18.2 |
| Renting/leasing and other business services | 1.2 | 3.1 | 10.2 |
| Manufacturing | 0.8 | 0.5 | 11.4 |
Export value in ICT services continues to be strong in 2020
The total export value of services in the Dutch business economy declined by 4% in 2020 relative to 2019, which, compared to five years earlier, is still 32% higher. As in 2019, the export value was highest in business services (Figure 5.4.7). Owing to a 16% growth in the export value of the information and communication sector, the difference was only €0.4 billion in 2020. The ICT industry’s export value from other EU countries has particularly increased compared to 2019 (up 20%). In the wholesale and retail trade, too, the export value in services increased in 2020. The export value of the transportation and storage sector fell in 2020 and is the only sector which export value is at an even lower value than in 2015.
| Bedrijfstak | 2020* | 2019 | 2015 |
|---|---|---|---|
| Specialised business services | 39.4 | 42.3 | 27.0 |
| Information and communication | 39.0 | 33.6 | 17.7 |
| Transportation and storage | 27.9 | 31.6 | 29.1 |
| Wholesale and retail trade | 20.0 | 19.2 | 16.5 |
| Manufacturing | 12.6 | 13.0 | 11.7 |
| Renting/leasing and other business services | 14.4 | 21.4 | 11.0 |
Neighbouring countries main source of services for independent SMEs
In 2020, Belgium and Germany were the main origin countries of the import of services for the Dutch independent SMEs (Figure 5.4.8). This group of enterprises imported €2.2 billion worth of services from Germany and over €1.5 billion worth of services from Belgium. Ireland ranked third. If we also look at the large enterprises, we see that the United Kingdom is a big player. In 2020, large enterprises imported nearly €20 billion worth of services from the UK, by far the largest trade value of all EU countries.
Although Belgium and Germany represent the most value in terms of the import of services for the independent SMEs, these are not the countries from which the highest proportion of enterprises import services. That list is headed by Ireland. More than 120,000 independent SMEs imported services from Ireland. This is mainly due to the fact that many tech enterprises are situated in Ireland, where Dutch enterprises purchase a small amount of (advertising) services in order to improve their business operations. For the independent SMEs, Germany and Belgium follow Ireland as countries from which the highest proportion of enterprises import services. Only about 500 large enterprises each imported an average of over €40 million worth of services from the United Kingdom in 2020.
| Land | Large enterprises | Independent SMEs |
|---|---|---|
| Germany | 14.3 | 2.2 |
| Belgium | 7.6 | 1.5 |
| Ireland | 7.9 | 1.4 |
| Poland | 2.5 | 1.3 |
| United Kingdom | 20.0 | 1.1 |
| Spain | 3.0 | 0.5 |
| Romania | 1.1 | 0.4 |
| France | 7.6 | 0.4 |
| Luxembourg | 1.0 | 0.3 |
| Italy | 3.0 | 0.3 |
Large enterprises export most to Germany and the UK
As with the import of services, Belgium and Germany are the most important destination countries for Dutch services provided by independent SMEs. Independent SMEs exported services worth €4.5 billion to Germany and almost €3 billion to Belgium. In third and fourth place were the United Kingdom and France, respectively. The contrast between the trade value of large enterprises and independent SMEs is less striking for the export value than for the import value. Still, the large enterprises exported services over seven times as much to the UK as the independent SMEs. Exports to the United Kingdom, like imports of services, are therefore mainly a matter for large enterprises. In addition, the large enterprises’ export value of €15 billion to Germany is also relatively high.
In 2020, there were nearly 30,000 independent SMEs that exported services to Belgium. On average, Dutch enterprises among the independent SMEs exported a larger amount to Germany: €176,000 per enterprise compared to nearly €100,000 to Belgium. The 35,000 large enterprises that exported services to the UK did so for an average of €4.5 million.
| Land | Large enterprises | Independent SMEs |
|---|---|---|
| Germany | 14.8 | 4.5 |
| Belgium | 6.2 | 2.9 |
| United Kingdom | 15.8 | 2.2 |
| France | 8.0 | 1.3 |
| Ireland | 5.7 | 0.5 |
| Spain | 2.7 | 0.5 |
| Italy | 3.8 | 0.5 |
| Sweden | 2.6 | 0.4 |
| Denmark | 2.1 | 0.4 |
| Poland | 1.8 | 0.4 |
5.5Dynamics of exporters
The group of enterprises 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 enterprises that, voluntarily or out of necessity, close their doors to international trade.
In 2020, more than 37,000 enterprises started exporting goods or services abroadnoot7, 3,000 less than in 2019. Especially the number of starting exporters of goods fell sharply. The number of starting exporters of services, on the other hand, remained roughly the same. Reasons to start exporting may, for example, be because they received orders from abroad, the domestic market became too small or they were driven by the competition to start exporting (CBS, 2019a). Conversely, nearly 21,000 enterprises withdrew from the international market as exporters in 2020, 2,500 more than in the previous year.noot8
Wholesale and retail trade and the specialised business services are the two sectors in which most enterprises started exporting (Figure 5.5.1). These are also the sectors that have the most exporters in the total number of international traders. As a proportion of the total number of exporters, the largest number of starting exporters was in the accommodation and food services sector (47%) and the renting, buying, selling real estate sector (40%). At 16%, the share was lowest in the manufacturing sector. The largest proportion of discontinuing exporters was in the accommodation and food services sector (30%). Compared to the previous year, 13% more enterprises stopped exporting in 2020.
| Sector | Dynamiek | Discontinuing exporters | Born globals | Other starters |
|---|---|---|---|---|
| Specialised business services |
Discontinuing, Specialised business services |
7 | . | . |
| Specialised business services |
Starting, Specialised business services |
. | 2.5 | 9.4 |
| Wholesale and retail trade |
Discontinuing, Wholesale and retail trade |
5.5 | . | . |
| Wholesale and retail trade |
Starting, Wholesale and retail trade |
. | 2.4 | 8.6 |
| Information and communication |
Discontinuing, Information and communication |
2.4 | . | . |
| Information and communication |
Starting, Information and communication |
. | 1 | 3.8 |
| Manufacturing | Discontinuing, Manufacturing | 1.6 | . | . |
| Manufacturing | Starting, Manufacturing | . | 0.5 | 2.2 |
| Construction | Discontinuing, Construction | 1.8 | . | . |
| Construction | Starting, Construction | . | 0.4 | 2.1 |
| Renting/leasing and other business services |
Discontinuing, Renting/leasing and other business services |
1.1 | . | . |
| Renting/leasing and other business services |
Starting, Renting/leasing and other business services |
. | 0.3 | 1.4 |
| Transportation and storage |
Discontinuing, Transportation and storage |
0.8 | . | . |
| Transportation and storage |
Starting, Transportation and storage |
. | 0.3 | 1.2 |
| Accommodation and food services |
Discontinuing, Accommodation and food services |
0.3 | . | . |
| Accommodation and food services |
Starting, Accommodation and food services |
. | 0.1 | 0.4 |
| Real estate activities | Discontinuing, Real estate activities | 0.2 | . | . |
| Real estate activities | Starting, Real estate activities | . | 0.1 | 0.3 |
| Other sectors | Discontinuing, Other sectors | 0.2 | . | . |
| Other sectors | Starting, Other sectors | . | 0.1 | 0.3 |
One in five new exporters is a born global
For many enterprises, internationalisation is seen as a gradual process, taking the step to expand the scope of their international activities only after having reached a certain level of development in the domestic market (Lopez et al., 2009; Sui & Baum, 2014). However, some enterprises start exporting goods or services as early as within the year of being founded. Such exporters are known as born globals. 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). Compared with the average start-up, born globals have on average more destination countries and have a higher export value. Also, the trade value of born globals generally grows faster in the years following their entry into the export market and they have a better chance of survival than other starting exporters (Cremers et al., 2019).
In 2020, there were nearly 7,500 of these types of born globals, 20% of the total number of enterprises that started exporting activities. This was still 500 more one year earlier and born globals were then still representing a quarter of the number of starting exporters. Thus, in 2020, the number of born globals fell for the first time since 2014.
In terms of industry, born globals were most often active in specialised business services (2,465) and in wholesale and retail trade (2,380). As many as two out of three enterprises that started exporting in the year they were founded were active in one of these two sectors in 2020. In absolute terms, born globals were also quite prominent in information and communication activities (1,045). Also in relative terms, there are many born globals in these three sectors, about 21% of the total number of starting exporters. These types of enterprises are rarest in the accommodation and food services sector (13% of the starting exporters).
Existing products and countries vital for export growth
Previous chapters showed that the export of goods in 2021 rose by 21.5% compared to 2020. However, what part of this growth is explained by starting exporters? What part results from enterprises exporting new products or tapping into new destination countries? Or could it better be explained by the increase of the exports of existing products to existing destinations?
The infographic below shows that enterprises can generate growth or decline in exports in various ways. Enterprises that started exporting for the first time created a 2.0% growth in goods exports, while those that stopped exporting altogether caused a 0.8% contraction. On balance, there was thus a 1.2% export growth. The difference in the export of goods on account of enterprises starting or discontinuing their exporting activities is also referred to as the extensive margin.
However, the strongest growth in the export of goods took place along the intensive margin, i.e. as existing exporters exported more of their products to existing destinations and thus increasing their sales to established customers. This was a 20.8% growth in 2021, which was offset by a 9.5% decline in exports by enterprises for which this type of trade was just beginning to decrease. On balance, there was thus a 11.3% export growth along the intensive margin.
Another aspect of the intensive margin is that there can be one new (or discontinued) dimension. The export of goods rose by 7.6% on account of enterprises that exported existing products to a new destination country, and contracted by 5.6% due to discontinued destinations. On balance this comes down to a 2.0% increase. New products to existing destinations resulted in an export growth of 0.7%, compared to a decline of 0.3% due to discontinued products. On balance, this results in a 0.4% growth. New or discontinued combinations of products and destinations resulted, on balance, in another 1.4% export growth in 2020.
Not all goods trade can be assigned to individual enterprises. The part that cannot be linked mainly concerns the re-exports by foreign enterprises that have a Dutch VAT number to report their trade, but have no significant physical presence in the Netherlands in the form of, for example, a factory with employees. These are mostly large enterprises that distribute their goods via the Netherlands across Europe. This unknown group’s share of growth was 5.3%. Adding up all the growth balances ultimately results in a 21.5% growth in goods exports in 2021 compared to 2020.
5.6International traders highlighted
This section looks in more detail at the entrepreneurs behind international traders.noot9, noot10 In the Dutch business economy, a total of approximately 411,000 entrepreneurs headed an enterprise in 2020 that trades internationally in goods and/or services. Around 30% of all entrepreneurs in the Dutch business economy were thus international traders. This represents a decline of 4 percentage points from 2019, when 34% of the entrepreneurs were international traders. In total, there were approximately 38,000 fewer entrepreneurs trading internationally in 2020 than in 2019. Three sectors accounted for 65% of this decline: the specialised business services sector (–12,600), the wholesale and retail trade sector (–6,700) and the ICT industry (–4,900).
As in 2018 and 2019, approximately 27% of internationally trading entrepreneurs were women. The share of female entrepreneurs is therefore one percentage point higher than for the group of entrepreneurs in the Dutch business economy who are not trading internationally. The likelihood of an entrepreneur trading internationally does not therefore appear to be strongly dependent on sex. This is also illustrated in Figure 5.6.1; of all male entrepreneurs in 2020, about 30% were trading internationally, while the share among women was 31%. The fall in the share of international traders in 2020 compared to 2019 is striking and is attributed to an absolute decrease in the population of international traders, possibly due to the coronavirus crisis.
If we differentiate the previously shown decrease of 38,000 internationally trading entrepreneurs according to sex, we count 10,200 fewer internationally trading female entrepreneurs in 2020, especially in the specialised business services sector (–4,500) and the wholesale and retail trade (–2,900). The male group dropped by a total of 27,300, with the largest decline in the specialised business services sector and the ICT industry.
| Geslacht | 2018 | 2019 | 2020 |
|---|---|---|---|
| Male entrepreneurs trading internationally | 34.3 | 34 | 29.7 |
| Female entrepreneurs trading internationally | 35.7 | 35.3 | 31.1 |
Figure 5.6.2 shows that there are differences in the sectors in which male and female entrepreneurs trade internationally. For both men and women, the majority are internationally active in wholesale and retail trade. As previously discussed, this sector frequently acts as an intermediate link in the national and international supply chains of enterprises. More than 38% of female entrepreneurs trading internationally were in wholesale and retail trade in 2020, compared to 32% of male entrepreneurs. The specialised business services sector ranks second; 30% of internationally trading women and 22% of internationally trading men operate in this sector.
| Sector | Male entrepreneurs trading internationally | Female entrepreneurs trading internationally |
|---|---|---|
| Wholesale and retail trade |
32.3 | 38.4 |
| Specialised business services |
21.9 | 29.7 |
| Accommodation and food services |
4.8 | 7.7 |
| Manufacturing | 8.0 | 6.3 |
| Renting/leasing and other business services |
4.4 | 5.0 |
| Information and communication |
10.7 | 4.3 |
| Construction | 10.6 | 3.5 |
| Transportation and storage |
4.8 | 3.2 |
| Real estate activities | 1.2 | 1.0 |
Figure 5.6.3 shows that the extent to which entrepreneurs trade internationally is age-related. Given the age, the probability of entrepreneurs trading with foreign countries is about one third for both men and women between the ages of 35 and 65. Both younger and older entrepreneurs are evidently less often active on the international market. Only the age categories 25 to 34 and 65 and over show a clear difference between men and women; female entrepreneurs in these age groups trade relatively more often with foreign countries than men.
| Leeftijdscategorie | Male entrepreneurs trading internationally | Female entrepreneurs trading internationally |
|---|---|---|
| 15 to 24 yrs | 18.8 | 18.2 |
| 25 to 34 yrs | 26.1 | 28.5 |
| 35 to 44 yrs | 31.2 | 31.9 |
| 45 to 54 yrs | 33.8 | 33.5 |
| 55 to 64 yrs | 32.4 | 33.4 |
| 65 yrs and over | 25.1 | 28.4 |
Male entrepreneurs higher transaction value on average
Figure 5.6.4 shows that there are also differences between men and women as regards trade value. The median import and export value of enterprises 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-led enterprises in 2020 was nearly €13,000 lower than that of businesses led by male entrepreneurs. For the import of services, the difference is slightly smaller at almost €10,000. There are also higher values for male entrepreneurs who trade internationally when it comes to the import of goods and services, though the differences are slightly smaller than for exports. The volume of the export and import of goods and services may, of course, be related to the sector in which the entrepreneur is active. No corrections are made for such differences.
| Handelsstroom | Male entrepreneurs trading internationally | Female entrepreneurs trading internationally |
|---|---|---|
| Goods imports | 43.52 | 34.14 |
| Goods exports | 56.33 | 43.69 |
| Service imports | 20.13 | 16.49 |
| Service exports | 36.71 | 26.81 |
5.7Characteristics of employees and dependence on imports
This section compares the characteristics of employees of enterprises that have production processes or turnover which depend to a greater or lesser extent on imports or exports of goods. A enterprise’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.noot11 Enterprises without imports or exports are not included in these analyses.
Most employment in enterprises with a less than 25% import ratio
In 2020, a total of 2.5 million full-time equivalents (FTEs) were employed by enterprises with imports and 1.8 million FTEs by enterprises with exports. Of these, relatively few worked for enterprises where the share of imports or exports in relation to turnover was higher than 25% (Figure 5.7.1). Of the importers, the vast majority of employment, i.e. 79% of FTEs, are at enterprises with an import intensity of a maximum of 25%. The picture is similar for export intensity, at 74% of FTEs. In other words, most of the working population is employed by the category of enterprises that import and export the least relative to their total turnover. Figure 5.7.1 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. This may just be a reflection of the fact that men generally work more hours than women; this is also true for enterprises that import and export, regardless of intensity. As a result, men’s working hours are also more dependent, both directly and indirectly, on exports than women’s working hours (CBS, 2018).
| Importintensiteit | Women | Men |
|---|---|---|
| 0-25% | 574 | 1389 |
| 26-50% | 101 | 255 |
| 51-75% | 39 | 86 |
| 76-100% | 10 | 25 |
Higher wages at enterprises with large international trade component
Employees at enterprises with a relatively high ratio of goods imports or exports to turnover earn higher wages on average as opposed to employees at enterprises with lower trade intensities (Figure 5.7.2). The average gross hourly wage at enterprises with an import intensity no higher than 25% was more than €22.noot12 In comparison, enterprises with an import intensity of more than 75% paid on average more than €4 more per hour. The picture is similar for exports, though the difference between the two extremes of export intensity is slightly larger, at approximately €6 per hour. These wage differences may be related to differences between sectors, technological requirements, scarcity, personal characteristics such as educational level and differences in labour productivity. Age, usually correlated with work experience, may also be a factor, as the next paragraph shows.
| Indicator | 0-25% | 26-50% | 51-75% | 76-100% |
|---|---|---|---|---|
| Import intensity | 22.2 | 24.4 | 24.2 | 26.6 |
| Export intensity | 22.7 | 25.3 | 25.1 | 28.5 |
Workforce also older in enterprises with higher trade intensity
Part of the wage gap could also be due to a difference in the age of the workforce (Figure 5.7.3). This is because enterprises that are more dependent on direct or indirect imports or exports employ older workers on average.noot13 Employees who work for enterprises with a ratio of imports to turnover that is no more than 25% are on average more than two years younger than employees at enterprises with an import intensity of more than 75%. In the breakdown by export intensity, the difference with three years is even greater.
| Indicator | 0-25% | 26-50% | 51-75% | 76-100% |
|---|---|---|---|---|
| Import intensity | 39.4 | 40.6 | 41.3 | 41.6 |
| Export intensity | 39.7 | 42.2 | 41.5 | 42.7 |
5.8References
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Noten
In defining the types of international traders, no minimum threshold was used to filter out small traders. Importers (exporters) import (export) 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, just over 6%. However, it must be emphasised that this is a small sector with regard to the number of enterprises it includes. Mining and quarrying involved some 585 enterprises in 2020, which is only 0.04% of the total Dutch business economy.
The actual Dutch earnings from exports per sector are discussed in Chapter 6.
See CBS (2021a).
The figures in this section relate to the number of Dutch enterprises with international service trade (see also Chapter 4 on international trade in services). To that end, the international trade in services was linked to all business units listed in the General Business Register (ABR) for the year in question. As not all international service trade can be linked to an enterprise registered in the ABR, the total figures are lower than the value of service trade in Chapter 4, and lower than reported on StatLine. For example, services provided or received by individuals (e.g. travel services), government organisations or multinationals’ financial flows are not included in the service trade in this section.
A starting exporter is an enterprise that exported goods and/or services in 2020, but did not engage in exports (yet) in 2019 or in 2018, regardless of whether the enterprise already existed in those years.
A discontinuing exporter is an enterprise that did not export goods or services in 2020 or in 2019, but that did do so in 2018. The enterprise must still have been in existence in 2020 in order to be listed as a discontinuing exporter.
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 an enterprise and employed by the enterprise as director (owner-managers). At present, about 250,000 enterprises in the Netherlands cannot be linked to an entrepreneur (half of the number of enterprises with legal personality).
Previous editions of Dutch Trade in Facts and Figures made use of a lower threshold of €5,000 to qualify as an international trader. This is no longer applied in this edition.
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 enterprise that sells intermediate goods to another Dutch enterprise, which uses them to manufacture goods that it then exports. Another example is a Dutch enterprise 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 enterprises. The weightings have been determined on the basis of enterprise 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 compensation for those hours.
The average age is a weighted average of the median ages at the different enterprises. As with gross hourly wages, the weighting has been determined on the basis of enterprise size in full-time equivalents.