One in three Dutch enterprises faces financial obstacles

One in three Dutch enterprises faces financial obstacles. They find it harder to get credit and loans and debtors pose an increasing risk. For the next twelve months, enterprises mainly expect to implement cost cutting measures. This is show by the Dutch economic survey of the fourth quarter of 2012.

Problems getting credit and loans

Some 33 percent of entrepreneurs face financial obstacles in their enterprises. The main obstacles are getting credit and loans from banks and other institutions, and the increase in debtors posing a risk.

In agriculture 48 percent of the holdings face financial obstacles, and 47 percent of the enterprises in the construction industry. The latter, has the highest share of enterprises that have trouble getting credit and loans, namely 38 percent.

Financial obstacles by type, Q4 2012

Business operations obstructed

Over 1 in 4 enterprises indicated that the financial obstacles hinder business operations. In agriculture and construction this share is well over 40 percent. The entrepreneurs stated that the financial obstacles primarily hinder investments and current production.

Obstruction due to financial obstacles, Q4 2012

Cutting costs

The main change enterprises see in their business operations for the next twelve months is cost cutting. Some 31 percent of all Dutch enterprises expect to cut costs. In the transport sector even 40 percent of enterprises expect to implement cost cutting measures. Furthermore, 23 percent of the entrepreneurs expect more competitive pricing and/or more intensive marketing.

Main changes in business operation in the next 12 months

Sidney Vergouw