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New businesses increased by 7 per cent in 2011

The number of people starting up their own companies in the Netherlands is continuing to grow despite the difficult business climate.

Figures by Statistics Netherlands (CBS) show there was a 7 per cent rise in new starts in 2011, double the rate of the previous year.

Two-thirds of new businesses started during the year were sole trader companies. Personal services and IT and communication were the most likely types to be one-man operations.

Around one in seven new businesses was an advice shop, followed by personal services and the art sector. More than a third (35 per cent) of current internet businesses were started in 2011, the figures show.

The strongest sector for new businesses in the last five years has been construction, mainly due to the boom years of 2007 and 2008 when the number of firms in the industry grew by 12 per cent each year.

Construction firms also have the strongest chance of surviving their first year, while catering firms were most likely to fold within 12 months.

Overall 20 per cent of new businesses started in 2007 ceased trading within a year. Companies’ survival rates improve if they can make it through the first two years.

Source: Het Financieele Dagblad: Ondernemerschap blijft populair

Photo by ZZP bv

See also: Statistics Netherlands website (in English)