Geopolitical turmoil affects more than half of business owners

More than half of Dutch business owners are feeling the effects of global geopolitical unrest. This is according to a survey conducted by the Chamber of Commerce (KVK) among 530 business owners. High energy prices, rising procurement costs, and higher transportation costs are putting particular pressure on companies.

Larger SMEs

According to business advisor Christiaan Hazelaar of the KVK, larger SMEs are being hit particularly hard. Two in five of these companies are experiencing significant impacts from international tensions, such as wars and trade measures. Among self-employed individuals and smaller SMEs, that proportion is considerably lower.

A lot of uncertainty

Hazelaar observes that there is a great deal of uncertainty. According to him, this anxiety stems mainly from the fact that business owners don’t know what the future holds and are wondering how significant the impact of geopolitical tensions on their businesses might be.

Not well prepared

The survey also shows that many businesses are not yet well prepared for a crisis. Although about half of business owners believe it is important to have a plan in place, only one in five say they are actually well prepared. One in ten business owners—and as many as one-third of self-employed individuals—report having made no preparations at all.

In addition, more than half of business owners have not yet taken any measures to mitigate the impact of the unrest. Companies that have taken such measures often opt to raise prices or accept a lower profit margin.

Hazelaar urges business owners not to wait and see. In his view, it’s wise to start thinking about potential risks and developing a plan right now.