Small and medium-sized businesses (SMEs) in the Netherlands are becoming increasingly cautious about making new investments, according to research by SRA, the largest association of accountancy firms serving the SME sector. The findings are based on more than 7,000 company annual accounts.
According to the accountants, many businesses are postponing investment decisions. “In 2025, profit growth is lagging behind revenue growth, causing companies to become increasingly reluctant to invest,” said SRA board chair Pieter van der Kwaak.
Van der Kwaak said growing uncertainty is another reason businesses are holding back. He pointed to rising labour and purchasing costs, inconsistent government policy, staff shortages, congestion on the electricity grid, artificial intelligence, digitalisation and uncertainty caused by tensions in the Middle East.
He described the decline in investment as “worrying”, saying it could lead to stagnation instead of growth. “The SME sector is already facing major challenges, making it even more difficult to keep pace,” he said.
The research found that average turnover increased by just over 6 per cent in 2025 compared with the previous year, while profits rose by only 3 per cent. According to SRA, inflation accounted for much of the increase in turnover.
Half of all businesses reported lower profits, with nearly one in four seeing profits fall by 50 per cent or more. Rising labour and purchasing costs were the main reasons. Profits declined particularly in the construction and hospitality sectors, while the industrial sector recorded above-average profit growth.
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