Netherlands Warm Up

Before heading to the Netherlands I came across a 2011 report by McKinsey & Co. “Opportunities for the Dutch Social Enterprise Sector“. It is four years old, the researchers analysed 700 social entrepreneurs, 100 of them in more detail – I figured this was as close as I was going to get to a country-specific report on the social enterprise sector.

Observation #1: Willemijn Verloop seems to be the person to know. Along with some introductions, another Social Venturer sent me an article about Social Enterprise in the Netherlands, featuring Willemijn Verloop. Co-author of this McKinsey report: Willemijn Verloop. Founder of two support organizations for social entrepreneurs in the Netherlands: Willemijn Verloop. The book “Social Enterprise Unraveled – Best practices from the Netherlands” that some interview partners recommended – written by: Willlemijn Verloop. I didn’t get to chance to meet her, tracking down this mastermind seems difficult. But if you read this, Willemijn, I’m waiting by the phone, coffee is on me!

Observation #2: The Dutch seem to have it together when it comes to being and working with social entrepreneurs. The report starts of with defining social enterprise as “a company with the primary goal to deliver social value in a financially sustainable and independent way”. Concise and without much lingo. I like it.

Dutch social enterprises: challenges and supporters

If you are one of the 4,000 – 5,000 social enterprises in the Netherlands, you are most likely active in sectors of biosystems, cleantech, economic development, civic engagement health and well-being, or education. Secondly, the challenges you are most likely to encounter are these:

  1. Developing business models – at the time only 42% of social enterprises under study were profitable
  2. Becoming a manager both internal and external: leading the company through a stage of scaling and growth, and in the process managing an increasing number of clients, data, and responsibilities
  3. Gaining access to venture capital
  4. Legislation
Challenges of Social Enterprises in the Netherlands, McKinsey, 2011, p.10

Challenges of Social Enterprises in the Netherlands, McKinsey, 2011, p.10

Let’s get to the juicy bits: The report has an entire chapter dedicated to support networks for social entrepreneurs internationally, and the Netherlands more specifically. Giving social venture support organizations concrete marching orders is great! If every country report ever written on social enterprise did that, I wouldn’t be doing this work. So, should you ever write a report for me, or with me, or about me, please include a chapter that talks about and to support organizations directly. Dankewell! For the Dutch sector the report lists four main types of support organizations:

  • coaches and education facilities
  • investors and match-makers
  • researchers, and
  • lobby organizations (to improve legislation)

The core of the report is a set of recommendations in which the authors call for

  • Promotion: awareness and visibility of the sector in the Netherlands
  • Education: gearing more talent towards the social enterprise sector
  • Support: management support in developing triple bottom line business models, coaching and access to relevant networks
  • Capital: access to seed and especially growth capital and matchmaking intermediaries
  • Guidelines: (inter)national standards for measuring both financial and social impact
  • Government recognition and support: for example in creating right conditions and opportunities for Social Enterprises to grow (e.g., supportive legislation)
Current Providers of Seed and Growth Capital in the Netherlands, McKinsey, 2011, p. 12

Current Providers of Seed and Growth Capital in the Netherlands, McKinsey, 2011, p. 12

To be fair, this was the first report of this kind that I have come across (point for the Dutch sector already), and with little material for comparison, I think it’s very concrete and direct. I was already looking forward to what I would find in the following week!