Entrepreneurs optimistic about 2019

© Nikki van Toorn
For 2019, entrepreneurs in the non-financial private sector expect higher turnover, staff increases and higher investments than in 2018. Aside from positive expectations for next year, more and more businesses indicate they are affected by staff shortages. At the beginning of Q4 2018, 26 percent of entrepreneurs were hampered in the business operations as a result. This is reported by Statistics Netherlands (CBS), the Dutch Chamber of Commerce (KvK), the Economic Institute for Construction and Housing (EIB), the Dutch Organisation for Small and Medium-Sized Enterprises (MKB-Nederland) and the Dutch Employers’ Organisation (VNO-NCW) on the basis of newly released figures in the Netherlands Business Survey (COEN).

Entrepreneurs are positive about the expected turnover in 2019. On balance, 30 percent are anticipating turnover growth. Optimism is most prevalent in retail trade, where 43 percent of entrepreneurs expect turnover to increase. The private sector is also positive about employment opportunities. On balance, 17 percent of enterprises expect to expand their workforce next year. The demand for labour is highest in the sector information and communication (31 percent). Investments for 2019 are expected to be higher than in 2018 among 19 percent of businesses; lower investments are anticipated by 11 percent.

Businesses face growing shortage of staff

At the start of Q4 2018, 26 percent of enterprises in the non-financial private sector were facing impediments to their business operations as a result of understaffing. The number of enterprises reporting shortages has increased continuously over the past period. At the start of 2016, less than 5 percent of enterprises reported staff shortages as being an impediment.

Understaffing most significant in transport and business services

In the sectors transport and business services, 35 percent of entrepreneurs reported staff shortages as a hindering factor in their business activities. These deficits are also above-average in the sectors construction, accommodation and food services, and information and communication. Staffing deficits were cited least frequently in the mining and quarrying sector (12 percent).

Business confidence remains high

Since 2014, the mood among Dutch entrepreneurs has been positive without interruption. At the start of Q4 2018, the business confidence indicator stood at 13.4, a slightly lower level than in the previous quarter but still historically high. Since measurements started in 2008, the highest level was reached in Q1 with 18.9.

Business confidence in the construction sector, came to 33.3 at the start of Q4. This means that the mood of entrepreneurs in this sector is most positive of all entrepreneurs in the non-financial private sector. At 18.4, business confidence in wholesale is above average. However, as a result of less positive signals regarding expected turnover, the confidence indicator is nearly 10 points lower than in Q3. Confidence in the sectors information and communication, business services and real estate activities also declined substantially.

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