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Foreign companies in the Netherlands more likely to survive

Foreign-controlled companies in the Netherlands are more likely to survive than Dutch-controlled companies, although Dutch businesses do increase their chances of survival if they immediately start trading with foreign partners, according to the latest figures from Statistics Netherlands.

In 2011, 56 percent of Dutch companies started in 2007 were still in business, whereas among foreign companies this figure was 62 percent. According to the Internationalisation Monitor 2012, the higher survival rate of foreign companies is partly due to the fact that they start business on a larger scale, and can also fall back on the capital of the parent company if necessary.

Dutch-controlled companies that start engaging in international trade during their first year have a higher chance of survival than companies who do not. In 2011, among Dutch companies started in 2007 these figures stood at 71 percent and 55 percent, respectively.

It is more difficult to export goods than it is to import them, because to export successfully you have to have a foreign market.

Just 4 percent of companies started in 2007 exported goods from the beginning, compared to the 9 percent that imported from the start.

Following a dip in 2009, the share of companies engaging importing and exporting activities recovered in 2010. Eleven percent of companies which do not start out as exporters start exporting one year after their foundation.

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Carly Blair

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