De Ondernemer + CrowdfundingHub
Published in Dutch here,
The Netherlands is on the cusp of an economic revolution, driven by technological innovations and a shift toward inclusivity and diversity in entrepreneurship. Experts Ronald Kleverlaan and Ruben Brave emphasize the crucial role this plays in economic growth and social equality.
Structural adjustments in the financing landscape for entrepreneurs are essential, as laid out in the National Covenant on SME Financing. Queen Máxima recently expressed her support for this inclusive approach during her speech at the annual conference of the SME Financing Foundation.
Queen Máxima has been committed to inclusive finance for years in her role as UNSGSA (United Nations Secretary-General’s Special Advocate for Inclusive Finance for Development). In this role, she works worldwide to improve access to financial services for all, with a particular focus on underrepresented groups. The connection between inclusive finance and inclusive entrepreneurship is clear: by improving access to finance, more diverse and innovative entrepreneurs can realize their ideas and contribute to economic growth. Research shows that startups valued at over $1 billion are often led by founders born in another country.
“Diversity in entrepreneurship is not just a moral choice, but an economic necessity.” This view is supported by compelling evidence from both national and international sources. Research by Endeavor Insight shows that startups valued at over $1 billion are often led by founders born in another country or with international experience.
Examples of such unicorn founders with a migration background include Steve Jobs, co-founder of Apple and son of a Syrian immigrant; Sergey Brin, co-founder of Google and born in Russia; and Tope Awotona, founder of the calendar management platform Calendly, who emigrated from Nigeria to the United States. Their contributions have had a significant impact on the global technology industry and economy. Their success underscores the importance of diverse perspectives and experiences, which leads to innovation and economic growth.
Supporting “missing” entrepreneurs
The OECD emphasizes the need to support “missing” entrepreneurs by improving access to resources and networks, particularly for women and migrants. These groups represent an untapped potential of 7.5 million additional entrepreneurs in the EU, which, if realized, could generate significant economic benefits and innovation.
The SER Work Agenda 2024-2026 also specifically emphasized an inclusive society and entrepreneurship as two of the four pillars for achieving Broad Prosperity.
Potential of the Dutch startup ecosystem
McKinsey’s analysis of the Dutch startup ecosystem illustrates the country’s potential to become a global leader in entrepreneurship by promoting diversity. By increasing the number of startups and facilitating their scaling, with a special focus on diversity among founders, the Netherlands could generate an estimated economic impact of €250 to €400 billion and create up to 250,000 new jobs between 2022 and 2030.
Current figures from Statistics Netherlands (CBS) also show that the number of start-up entrepreneurs with a migration background is already growing rapidly. In 2022, there were almost 100,000 start-up entrepreneurs with a migration background. This represents 42 percent of all new businesses launched, more than double the number 10 years ago. This adds 88 billion euros (11 percent) to our GDP annually, and that figure is growing rapidly. To ensure these entrepreneurs have the same opportunities, it’s important that the entrepreneurial ecosystem adapts accordingly.
“McKinsey’s analysis of the Dutch startup ecosystem illustrates the country’s potential to become a global leader in entrepreneurship by promoting diversity. By increasing the number of startups and facilitating their scaling, with a special focus on diversity among founders, the Netherlands can generate an estimated economic impact of €250 to €400 billion and create up to 250,000 new jobs between 2022 and 2030.”
MeJudice and the Netherlands Bureau for Economic Policy Analysis (CPB) respectively point to the necessity and legitimacy of a more inclusive entrepreneurship ecosystem for the well-being of the Dutch economy. By lowering barriers for underrepresented groups and improving access to financing, the Netherlands can not only stimulate economic growth but also foster a more just and inclusive society.
Dire Underfunding of Women and Founders with Migrant Backgrounds
In her speech, Queen Máxima also highlighted the dire underfunding of female entrepreneurs. Despite their potential, women still receive less than 2 percent of venture capital funding worldwide, as confirmed by the leading magazine Forbes. For Black founders, the situation is even more dire: according to the recent impact report from Google Black Founders Fund—the Google for Startups initiative that provides support and financing to Black entrepreneurs to grow their businesses and stimulate their innovations—they receive only 0.51 percent of available funding. This is a huge missed opportunity, given the proven positive economic impact of diverse and inclusive financing.
The importance of inclusive financing is further substantiated by a recent article by Melinda French Gates, in which she argues that encouraging female entrepreneurship could make the world $6 trillion richer. Her article is based on World Bank research, which demonstrates the enormous economic benefits of inclusive financing. Broad Prosperity for Descendants of the Colonial Past
A striking example of the importance of inclusive entrepreneurship is the focus on creating broad prosperity for descendants of the colonial past. The Dutch New Narrative Lab Foundation (DNNL), in its response to the Internet consultation on social initiatives related to the history of slavery in the European Netherlands, strongly advocated for supporting initiatives that promote economic emancipation and a more inclusive economy. DNNL proposes focusing investments on professionalizing grassroots organizations, community-building initiatives, and substantial-impact initiatives that promote inclusive entrepreneurship, thereby not only improving the economic position of individuals and communities but also contributing to a resilient and inclusive society. By investing in startup incubators and entrepreneurship training programs geared towards descendants of the history of slavery, the Netherlands can take a concrete step toward broad prosperity through innovative entrepreneurship, while simultaneously addressing intergenerational issues from the past in the present, with an eye to a future in which demographic upheavals are expected.
Broad prosperity as a foundation for strengthening inclusive entrepreneurship
These insights provide a solid foundation for the need to develop structural policies around Inclusive Entrepreneurship. Inclusive entrepreneurship is essential for our future prosperity, and it is crucial to ensure that concrete activities are developed to achieve this. This involves valuing every entrepreneurial voice and unlocking the full economic potential throughout the Kingdom of the Netherlands. “Investing in entrepreneurial diversity is investing in our future.”
Activist role of all players in the ecosystem
Queen Máxima emphasized in her speech that the importance of inclusive financing goes beyond just banks: “And so everyone has a role to play: financiers – both banking and non-banking – but also entrepreneurs themselves, their associations and networks, and private and public service providers. All players in the SME financing ecosystem must be active. And perhaps even become a little more activist.” To achieve these goals, everyone in the entrepreneurial ecosystem must play a role. Lowering barriers and improving access to financing are crucial to promoting a more just and inclusive society. One of the concrete actions will therefore be to include inclusive financing in the National Covenant on SME Financing.
The need for inclusion in a changing society
Society is changing rapidly, the future is uncertain, and in the coming years we will have to deal with new societal challenges. Entrepreneurship offers solutions to these challenges and is therefore more necessary than ever. However, the Dutch entrepreneurial ecosystem is insufficiently inclusive. This leads to underrepresentation of various groups, causing the Netherlands to miss out on prosperity due to “missing entrepreneurs.”
Greater diversity and inclusion contribute to a fertile ground for entrepreneurship. This leads to more and better entrepreneurship that contributes to broad prosperity.
“We call on all stakeholders, from financiers to entrepreneurs and policymakers, to lower barriers and improve access to financing.”
Now is the time to take action together and contribute to a more inclusive entrepreneurship ecosystem. We call on all stakeholders, from financiers to entrepreneurs and policymakers, to lower barriers and improve access to financing for all underrepresented groups. This may be easier than expected, as evidenced by the recent DNNL unConference, an inspiring and inclusive networking event that generated nearly €1 million in deals for innovative entrepreneurs from underrepresented groups.
Let’s build a future together in which diversity and inclusion are the driving force behind our economic and societal growth, a future in which we successfully utilize the full potential of our society.
About the authors
Ronald Kleverlaan is known as an authority on crowdfunding, alternative financing, and social innovation in the Netherlands. He is the founder and chairman of the board of Stichting MKB Financiering (MKB Financing Foundation), an organization committed to improving access to financing for all entrepreneurs. Ronald is also the director of the European Centre for Alternative Finance at Utrecht University, an international knowledge center for alternative and innovative financing. With his extensive experience and expertise, he advises various European organizations and governments on the development of the financing market for startups and SMEs. His passion lies in supporting entrepreneurship and innovation by creating a robust ecosystem for inclusive financing. More information about inclusive financing can be found on the Stichting MKB Financiering website, at: “Kleuren en diverse MKB Financieringscongres – Mind the Gap shows the way to inclusive financing.”
Ruben Brave is a serial tech entrepreneur, investor, and executive with a rich background in technology, media, and innovation. He also holds various board positions, including those at the Social and Economic Council (SER, Diversity in Business), the Cultural Participation Fund, and the Internet Society Netherlands. He is an Entrepreneur in Residence at Vrije Universiteit Amsterdam, founder of the Dutch New Narrative Lab Foundation (DNNL), and has (co-)launched several startups and initiatives focused on digital innovation and social impact. Ruben has a strong focus on promoting inclusivity and diversity within the technology and entrepreneurial community. He is involved in various social projects and platforms committed to reducing the digital divide and encouraging entrepreneurship among underrepresented groups. Through his work at the intersection of technology, society, and culture, Ruben strives to achieve positive social change through innovation through inclusion. More information about DNNL can be found on the website of the Ministry of Economic Affairs and Climate Policy.