Unlocking entrepreneurial spirit

The Netherlands faces major challenges in the field of climate, health, labour market and future earning capacity. Companies and enterprises are indispensable to tackle these challenges successfully. However, unlocking their entrepreneurial spirit for social benefit, requires much more clarity in government policy and a better understanding of the commercial realities of businesses.

Challenge and motivate

The government is inclined to accommodate the status quo, and in doing so undermining the innovative spirit of existing businesses and discouraging new entrepreneurs. As a result, crucial opportunities are missed to align business with society. The Scientific Council for Government Policy (WRR) advocates a change from pampering to challenging and motivating. The entrepreneurial strength of business is indispensable for the prosperity of the country and for dealing with the major societal challenges ahead.

Recommendations

The WRR makes three main recommendations for government policy:

1. Reward good practices
   Focus on ambitious combinations of pricing and regulation and strengthen control over regulation and supervision.
2. Exercise caution with financial support
   Reconsider subsidies and tax arrangements and provide support only when a temporary boost is needed for developing societal solutions.
3. Unlock Investments for transitions
   Make procurement and bidding policies more goal-oriented and establish a public-private investment bank.