Highlights findings Netherlands Chamber of Commerce European internal market panel survey June 2016

In December 2015 / January 2016, the Netherlands Chamber of Commerce carried out a survey on experiences of Dutch

entrepreneurs with the European internal market. Out of the 6,576 entrepreneurs in the chamber’s entrepreneurs panel that

were asked to participate, 2,585 entrepreneurs filled in the questionnaire – a response rate of 39.3%. Entrepreneurs were asked

about modes of EU internationalisation, benefits, perceptions, obstacles and knowledge and information provision with regard to

doing business in the internal market. These slides show the highlights of the survey results.

Overall, the survey results give a reliable and accurate picture of the population. With the number of respondents (2.585), a

reliability of 95% and an error margin of 1,80%, inferences can be made about the entrepreneurs population in the Netherlands.

To make inferences about subgroup populations (e.g. Dutch entrepreneurs doing business in other EU countries or goods

exporters) with reasonable accuracy (sampling error <10%) and reliability (95%), a sample size of approximately 100 (n=100) is

needed. For the precise accuracy margins of each survey result, we would like to refer to the explanatory section of the

complete survey report.

At the invitation of the Netherlands Chamber of Commerce, more than 6.500 entrepreneurs participate in the panel. Six to ten

times per year, they receive an email with a link to a short questionnaire. The entrepreneurs panel of the Netherlands Chamber

of Commerce is managed by the independent research- & consultancy bureau Moventem (www.moventem.nl)

Panel survey

European Internal Market

2

Main obstacles (top-3)

Different national product requirements (36%)

Poor findability of information on applicable rules (32%)

Unfamiliarity with the rules that have to be followed (29%)

Different national contractual or legal obligations (29%)

Goods

Complexity of VAT rules and procedures (36%)

Poor findability of information on applicable rules (33%)

Unfamiliarity with the rules that have to be followed (32%)

Services

Nb. Percentage of entrepreneurs involved in the sale of goods OR services to other EU

countries (2015) considering it a (very) large obstacle (n=263 and n=252 respectively)

3

Main obstacles (top-3)

High delivery costs (44%)

High costs of guarantees and returns (35%)

Risk of fraud and non-payment (29%)

(Complexity of VAT rules and procedures (28%))

Online sales

Nb. Percentage of entrepreneurs involved in the online sales of goods and services to other

EU countries (2015) considering it a (very) large obstacle (n=94)

Interesting:

15,2% sold goods and/or services online in NL

compared to 4,4% to other EU countries

In retail: 45,7% online in NL vs. 16,1% online

to other EU countries

4

1,4%

36,3% 42,4% 12,7% 7,3%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

How well do you feel informed about the rules that apply in the European Market? (n=806; entrepreneurs doing

business in other EU countries, 2015)

Very well informed Fairly well informed Not very well informed Not at all informed DK/NA

More than 55% of Dutch

entrepreneurs who are

doing business in other

EU countries are ‘not

very well informed’ or

‘”not at all informed”

about the rules that

apply in the European

Market

13,4% 49,6% 32,4%

1,3%

3,3%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Would you like to know more about the rules that apply in the European Market? (n=806; entrepreneurs doing business in other EU countries,

2015)

Yes, definitely Yes, to some extent No, not really No, definitely not DK/NA

Around 63% of Dutch

entrepreneurs are doing

business in other EU

countries would like to

know more about the rules

that apply in the European

Market.

Nb. Doing business in other EU countries / internal market: exporting, importing, investing, cooperating internationally or

active in international subcontracting to/with/in other EU countries.

5

0,2%

9,0% 43,4% 38,3% 9,0%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

How well do you feel informed about what you can do if the government in another EU country does not apply the rules correctly? (n=806; entrepreneurs doing business in

other EU countries, 2015)

Very well informed Fairly well informed Not very well informed Not informed at all DK/NA

Only 9% of Dutch entrepreneurs who are doing business in other

EU countries feel ‘fairly to very well informed” about what they

can do, if the government in another EU member state does not

apply the EU rules correctly

6

2,1%

15,5% 26,7% 55,7%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Are you familiar with the principle of mutual recognition? (n=806; entrepreneurs doing business in other EU countries, 2015)

Yes, I know exactly how mutual recognition works

Yes, I know more or less how mutual recognition works

Yes, I have heard of mutual recognition but I dont not know anything about it

No, I have never heard of the principle of mutual recognition

Over 55% have never heard of the principle of mutual recognition. Over 25% have heard of the

principle but does not know anything about it. Less than 18% know more or less how the principle of

mutual recognition works (entrepreneurs doing business in the internal market)

7

40,1%

25,2%

14,5%

8,7%

1,9% 0,7%

8,9%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

If you are doing or are going to do business in another EU member state and want to know the applicable rules and procedures where would you first look for information? (n=806; entrepreneurs doing business in other EU countries,

2015)

Google or

another

search engine

national

government

website in own

country

Official EU

website

National

government in

destination

country

friends, family,

acquintances

Social

media

Something

else

When a Dutch entrepreneur is doing business or is going to do business in

another EU member state and wants to know the applicable rules and

procedures, then over 40% would first search for information via

Google or another search engine. More than a quarter would search on a

website of the national government in their home country.

8

0,6%

9,8% 39,8% 18,8% 4,7% 26,3%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

What is your experience with obtaining information on the rules that are applicable in the European internal market? It is…. (n=806; entrepreneurs doing business in other

EU countries, 2015)

Very easy Fairly Easy Not easy, not difficult Difficult Very Difficult Not applicable

Almost a quarter of Dutch entrepreneurs who are doing business

in other EU countries believe obtaining information on applicable

internal market rules is difficult . Almost 40% consider it “not easy,

not difficult”, only 10% find it easy.

9

3,7%

2,4%

2,3%

2,3%

3,1%

2,3%

2,4%

2,3%

2,1%

17,6%

5,8%

3,6%

3,3%

2,3%

2,0%

1,9%

1,9%

1,8%

41,6%

20,1%

10,9%

12,1%

13,1%

10,2%

10,9%

9,2%

13,0%

37,2%

71,7%

83,2%

82,3%

81,6%

85,5%

84,8%

86,6%

83,1%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Entrepreneurs Plaza (Ondernemersplein), internationational section

European Small Business Portal

Your Europe Business

European E-justice portal

Enterprise Europe Network (EEN)

Your Europe Advice

Europe Direct

Points of Single Contact; EU-GO

SOLVIT

Could you please indicate to what extent you are familiar with the following online information and advisory services? (n=806; entrepreneurs doing business in other EU

countries, 2015)

Yes, I know precisely what it is Yes, I more or less know what it is Yes, I have heard of it but dont know anything about it No, I have never heard of it

80% of Dutch entrepreneurs who are doing business in the

internal market have never heard of the listed online

information and advisory services. The exception is

Entrepreneurs Plaza (Ondernemersplein) that was included

as a reference.

10

35,0% 35,0%

26,4% 26,4%

10,2% 9,7% 9,7%

1,1% 0,5% 0,0%

17,2%

0%

20%

40%

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How do you deal with problems caused by an incorrect application of EU law by the administration of another EU country?[MC] (n=150 entrepreneurs doing

business in other EU countries experiencing problems, 2015)

More than 80% of entrepreneurs active in the internal market have never

experienced problems caused by an incorrect application of EU law by the

administration of another EU country (n=806). 35% of entrepreneurs who did

experience such problems (n=150), do what the government asks, even when

they know it is not in accordance with EU law. 26% give up.

More than half of the entrepreneurs who have an opinion on the benefits of the internal market for the

Netherlands, state that our country has benefited (very) significantly from the European internal market. 21%

stated that the Netherlands has benefitted (very) little. Over 40% have no opinion/ don't know.

11

9,5% 22,1% 14,1% 7,6% 4,3% 42,4%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

To what extent do you think the Netherlands has benefited from the European internal market? (n=2.585)

Very significantly Significantly Neutral Little Very little DK/NA

Freelancer Micro-enterprise

(2-9 WP)

Small enterprise

(10-49 WP)

Medium-sized enterprise

(50-249 WP)

Very Significantly 8,6% 9,5% 14,4% 10,9%

Significantly 20,5% 22,2% 29,6% 30,4%

Neutral 13,3% 15,0% 14,0% 15,2%

Little 7,0% 8,4% 6,2% 15,2%

Very little 4,1% 5,6% 1,2% 0,0%

DK/no opinion 46,5% 39,2% 34,6% 28,3%

Agriculture

(+forestry,

fisheries

Construction Industry Wholesale Retail Transport &

storage

Information &

communication

(ICT)

Business

Services Something else

Very significantly 12,0% 4,1% 13,0% 16,6% 4,0% 17,3% 9,7% 12,8% 6,1%

Significantly 32,3% 9,3% 30,4% 31,8% 23,9% 28,0% 22,4% 22,8% 19,7%

Neutral 12,8% 13,4% 19,1% 16,6% 19,4% 16,0% 13,4% 13,0% 12,4%

Little 7,5% 11,0% 6,1% 12,7% 7,7% 6,7% 5,2% 7,7% 5,3%

Very little 3,0% 7,6% 1,7% 3,2% 3,6% 2,7% 5,2% 3,5% 5,2%

DK/no opinion 32,3% 54,5% 29,6% 19,1% 41,3% 29,3% 44,0% 40,3% 51,3%

12

14,3% 28,2% 18,8% 7,2% 3,3% 28,2%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

To what extent do you think the Netherlands has benefited from the European internal market? – Entrepreneurs doing business in other EU countries, 2015

(n=806)

Very significantly Significantly Neutral Little Very little DK / NA

To what extent do you think the Netherlands

has benefited from the European internal

market?

Doing business in

other EU countries

Not doing

business in other

EU countries

Very significantly 14,3% 7,2%

Significantly 28,2% 19,2%

Neutral 18,8% 11,8%

Little 7,2% 7,8%

Very little 3,3% 4,8%

Don’t know / no opinion 28,2% 49,3%

To what extent do you think the

Netherlands has benefited from the

European internal market?

Exporting

to another

EU country

Other

Very significantly 17,1% 8,0%

Significantly 33,6% 19,9%

Neutral 18,7% 13,2%

Little 7,5% 7,6%

Very little 3,3% 4,5%

Don’t know / no opinion 19,9% 46,9%

Entrepreneurs who are doing business in other EU countries (active in the internal market) feel that the Netherlands has

benefited more from the internal market than entrepreneurs who are not. When they are doing business in other EU countries

and have an opinion about the benefit, then almost 60% feel that the Netherlands has benefited (very) significantly and 15%

(very) little. The percentage no opinion / don’t know decreases to 28%.

13

17,9%

14,3%

10,4%

7,7%

13,3%

7,4%

7,1%

5,1%

2,4%

1,4%

40,5%

36,3%

37,7%

33,9%

25,0%

25,8%

24,0%

19,8%

14,5%

4,6%

15,8%

17,5%

20,8%

18,9%

15,8%

25,0%

28,3%

29,7%

30,4%

28,9%

5,7%

5,6%

6,2%

14,0%

10,1%

10,1%

11,4%

14,5%

19,8%

21,4%

1,6%

1,7%

1,7%

4,1%

4,3%

3,2%

4,2%

3,5%

8,1%

9,1%

18,5%

24,5%

23,2%

21,4%

31,5%

28,6%

25,0%

27,4%

24,8%

34,6%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Easier and cheaper travel in the EU

A larger potential market (larger market, economiesof scale)

Bigger choice of products & services

Lower telecommunication cost in Europe

Decrease in adminstrative burden and bureaucracy

A stronger competitive position vis-a-vis countriesoutside the EU (e.g. USA, Japan or China)

Increased prosperity

Lower prices for products and services

Fairer competition between companies

Easier access to finance

The internal market of the European Union has led to ... (n=2.585)

Strongly agree Agree Neutral Disagree Strongly disagree Don't know / no opinion

Entrepreneurs indicated the internal market has particularly led to: ‘Easier &

cheaper travel in the EU’ (58,4%), ‘a larger potential market’ (50,6%) and

‘bigger choice of products & services’ (48,1%).

14

21,4%

11,6%

11,6%

8,7%

9,1%

7,6%

7,3%

44,0%

45,9%

27,0%

24,1%

21,2%

20,8%

19,3%

12,0%

16,9%

24,6%

25,5%

27,7%

28,3%

29,7%

3,7%

4,7%

12,4%

17,3%

16,2%

15,2%

16,9%

0,8%

0,6%

1,2%

2,3%

2,2%

1,4%

1,8%

18,1%

20,3%

23,1%

22,0%

23,6%

26,6%

25,1%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

An influx of cheap labour

Increased competition

Unequal competition between weaker andstronger EU countries

Threat to national production

Deterioration of working conditions in theNetherlands

An increase in administrative burden andbureaucracy

Cooperation with too many differentcountries

The internal market of the European Union has led to ... (n=2.585)

Strongly Agree Agree Neutral Disagree Strongly disagree Don't know / no opinion

Asked about negative impacts, 65% of entrepreneurs indicated that the internal

market has led to ‘an influx of cheap labour from other EU countries’

15

94,7%

27,0%

7,1% 0,9%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Your own website or app An online market place (e.g. eBay,Amazon, Craigslist, Booking.com,

Apple Store, Google Play)

EDI-type transactions (ElectronicData Interchange)

None of the above

Which of the following do you use to sell your products and services online in other EU countries? [MC] (n=94)

Of the respondents who are

selling online in the EU, almost

95% used their own website to

make online sales of goods and

services in other EU countries.

27% used an online market

place.

31,0% 13,8% 27,6% 10,3% 17,2%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

How important are online market places for cross-border sales in other EU countries? (n=22)

Very important Important Neutral Not important Not important at all

Almost 45% of respondents

who are using an online

market place for selling in

other EU countries stated

that these online market

places were (very) important

for cross-border sales in

other EU countries

16

This survey has been conducted by the Netherlands Chamber of Commerce - Source for

Entrepreneurship.

For further information about this survey, please do not hesitate to contact:

Remco de Bruijn

remco.de.bruijn@kvk.nl

Phone: +31 885853409

The Netherlands Chamber of Commerce is a modern public service provider dedicated to make life

easier for entrepreneurs by providing useful information & advice. The Netherlands Chamber of

Commerce provides objective information & advice on business start-up, scale-up and transfer,

finance, internationalisation, innovation and companies (business register).

For more information on the Netherlands Chamber of Commerce please visit:

http://www.kvk.nl/english

Netherlands Chamber of Commerce (KvK)

Sint Jacobsstraat 300, 3511 BT Utrecht (head office)

Netherlands