In the Netherlands there are more and more small companies emerging, while the number of big companies is decreasing. (CBS, 2015) When we look at these numbers, we can see that there is a huge increase in the number of businesses in the sector business services, health and welfare, and education. In this blog I am going to focus on the increase in the business services sector, because the other increases are mainly caused by changes in policy in the Netherlands.
According to the CBS, which is the Central Bureau for Statistics in the Netherlands, the increase in webshops is caused by the fact that there are low entry and exit fees. These low fees have caused the number of webshops to rise with 17 thousand from 2010 to 2014 to a total of 30 thousand webshops in 2014.
These low entry and exit fees are mainly caused by all sorts of new technologies in the information sector. You can think of providers who accommodate making a webpage without using any code, you simply drag some textboxes and pictures. Furthermore you can think of providers like Dropbox, Google Drive, which provide you with online storage which is relatively safe. Also there are a lot of companies that provide administration services that are partially automated, you can think of Exact Online, Twinfield, e-boekhouden et cetera. All these services have one thing in common, namely scalability, and I think this is one of the main drivers behind today’s enormous increase in online shops.
These companies provide their services for almost no money or even for free. When your company grows, you are going to need more functions or you require more of the products that are offered by the same company. Since you are familiar with their services, it is not likely that you will switch to another provider, since the switching costs are high. These new kinds of business models are becoming more and more popular and are facilitating small companies to start with almost no resources.
This was my blog about scalability and I hope you enjoyed reading the blog.
Bibliography:
https://www.cbs.nl/nl-nl/nieuws/2015/16/steeds-meer-ondernemers-in-nederland \