The extent to which entrepreneurs are able to pass on the increased costs of their products to their customers varies widely. Half of Dutch companies say they are barely passing on the increased costs, if at all.
This is evidenced by the results of the latest business survey in the Netherlands, which was conducted last month by Statistics Netherlands in collaboration with the Chamber of Commerce, the Economic Institute for the Construction Industry and the business organizations MKB-Nederland and VNO-NCW.
In the survey, nearly 4 percent of entrepreneurs said they could pass on cost increases entirely and 43 percent largely. 46 percent say they are able to do this to a small extent, and just over 6 percent indicate that it is not possible at all. Compared to the beginning of last year, the share of entrepreneurs who said they could move the increased costs up significantly last month. The percentage of entrepreneurs who were unable to incur any costs and the percentage of entrepreneurs who were able to fully pass on costs decreased.
Entrepreneurs in the real estate rental and trading business most often, at about 23 percent, indicate that they cannot afford the increased costs. In agriculture, forestry and fisheries too, a relatively large number of entrepreneurs say they cannot afford the increased costs. That percentage was the lowest in the industry at more than 2 percent.
More than 56 percent of entrepreneurs cite a price increase as the most worrying development for their company in the coming year. Entrepreneurs indicate this most often in commerce, at more than 66 percent, and least in the hospitality industry, at more than 31 percent.
Just over 71 percent of entrepreneurs believe they have booked a positive operating result for 2022. This is about the same number as a year ago, when 71 percent of entrepreneurs predicted it for 2021. Within small and medium-sized businesses, entrepreneurs believe they have achieved Losing or not making a huge profit in 2022 is a little more than the big companies.
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