Feedback | Dutch austerity stands in the way of international success for start-ups

Up to Secretary of State Marnix von Ridge (Finance and Taxation Officers, CDA), employees in the Netherlands will be rewarded with equity options January 1st will be financially more attractiveIt fulfills the long day desire of many start-up companies. But the law or not: many Dutch entrepreneurs do not want to give shares. Creating world-class companies requires a different mindset.

In many countries this is a natural trend of business. You can only get the best talent if you offer stock options in the company. In this way, they will also benefit financially from long-term growth ambitions. Start-up entrepreneurs have long claimed that offering stock options in the Netherlands is hopelessly complicated. But is that the real reason why entrepreneurs here don’t want to share it with employees?

Anyone who ‘uses’ stock options (those who use them) must now pay income tax immediately. Von Reign changes the bill: the employee can pay taxes later, for example when he or she sells shares in the future. In a nutshell: The current option plan may be unfavorable, but staff may not allow you to be generously informed.

read more: Risk of start-up factory

Small

The real problem is very deep: many Dutch entrepreneurs do not want to share a part of their company with their employees. If they ‘give’ the shares, it will be less. This kind of skimming without confidence is a hindrance to their own success and to the Dutch start-up ecosystem.

Rewarding with stock options offers many benefits to start-ups: employees are more engaged and persistent Fort– Long time with the company. Most importantly, stock options will give you access to a set of international skills that do not come with a simple paycheck.

Better talent creates better products and accelerates the growth of the company. In addition, the best investors invest quickly in companies where founders share generously with their employees. These companies are attracting faster and more money. And weAccess to talent‘And’Access to moneyPrecisely two very important factors in the development of an ambitious start-up.

Measurements

Stock options are above all necessary to create a prosperous start-up environment. When a successful start-up is sold in the United States or sold out in general, it means that hundreds of employees make a modest fortune in one fell swoop. That invest money Angel investors In new endeavors. On the other hand, if the money is with a limited number of founders, the investment landscape will grow slowly.

The Netherlands’ occasional technological success stories underscore the usefulness of stock options: Adyen, Elastic and GitLab also generously shared with their employees before the IPO. A few fast-growing scale-ups are now following their path. The reason for this strategy is that these parties are growing into major global partners.

Dutch start-up founders should ask themselves: Do you want to have a large stake in a small company or share with people who realize international development ambitions? The final cost of not finding the right talent is much higher than having less stock in your own pocket.

Anyone who shares the company’s growth potential will benefit together. The law of van Riege’s will will certainly help this. But more important than that is the mindset of entrepreneurs: multiplying by division is the only way to international success.

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