Too many startups, too few scale-ups: a Dutch paradox

The Netherlands may be one of Europe's most fertile grounds for new businesses, but when it comes to turning those startups into scale-ups, the country is falling behind. That is the central finding of a newly published report by RaboResearch, the economics and analysis division of Rabobank, authored by economist Zazie Weiffenbach and innovation expert Meindert Flikkema.

According to data from the 2026 State of Dutch Tech report by Techleap, the Netherlands ranks in Europe's upper tier for startup-to-scale-up conversion — but still trails Germany, Switzerland, the United Kingdom, and France by a meaningful margin. The Rabobank researchers set out to understand why, and what can be done about it.

Too many startups, not enough quality?

One counterintuitive finding is that the Netherlands may actually have too many startups relative to its conversion capacity. Data from the Organization for Economic Co-operation and Development (OECD) show the country is a European leader in the sheer number of new ventures. Yet the Rabobank report identifies a strong negative correlation between how optimistically citizens perceive entrepreneurial opportunities and how often those opportunities ultimately lead to startup scaling. Two-thirds of working-age Dutch adults who are not yet running a business say they see good opportunities to start one.

The country's industrial sector is also a factor. Nations with higher startup-to-scale-up ratios tend to have manufacturing industries that contribute more to their overall economy. The Netherlands, with its comparatively service-heavy structure, is at a relative disadvantage here.

Acquisitions and relocations drain the pipeline

A less visible but significant drain on the scale-up pipeline is the acquisition of promising Dutch startups by foreign buyers. Research cited in the report shows the number of such takeovers has nearly doubled over the past five years — from 66 to 129. While the ratio of foreign to domestic buyers has remained roughly stable, the absolute increase means more potential scale-ups are being absorbed before they can grow independently. In some cases, these so-called "killer acquisitions" eliminate the very innovation that made the company attractive in the first place.

What founders can actually control

While market size, national culture, and industrial composition are difficult for individual entrepreneurs to influence, the Rabobank researchers identify three internal levers that founders can pull.

• The first is standardization. Scaling requires efficient, repeatable processes. Companies that rely on bespoke solutions for every client create a "customization jungle" that is nearly impossible to grow at speed.
• The second is external orientation — actively building supply chain relationships and thinking ahead about who will service products after they're sold. Startups that wait too long to cultivate these partnerships often find themselves unable to meet demand when growth arrives.
• The third is distributed leadership. The transition from startup to scale-up demands a shift away from founder-led decision-making toward a professional management team that can delegate, onboard expertise in HR and finance, and maintain an innovative culture while introducing the structure needed to grow.

Building a community, not just an ecosystem

The report concludes with a call for a more integrated national approach. The Netherlands already has technology transfer offices at universities, regional development agencies, and bank-backed acceleration programs. But the researchers argue these actors — entrepreneurs, investors, government bodies, universities, and large corporations — need to operate less as isolated nodes and more as a connected community united by a shared passion for innovation and growth.

Drawing on case studies from the UK and Germany's TUM Venture Lab in Munich, the report points to three productive behaviors: breaking down silos between organizations, creating events and spaces where founders and investors can meet, and unlocking access to resources such as office space, capital, and legal guidance.

For a country that prides itself on entrepreneurial spirit, the message is clear: having many startups is a good start, but it is not enough.