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During the summer, TABS surveyed more than 200 Dutch companies and conducted in-depth interviews with 40 of them.

Executive Summary
In 2013 TABS Inc. researched the do’s and don’ts of doing business in the United States as a Dutch venture. The main take-aways from the 2013 DVITUS research were:
1) That positive results take time, most companies needed usually at least 3years before they experienced substantial revenues.
2) A significant investment is needed to generate better results for your U.S. venture.
3) If you want substantial growth you need to set-up a U.S. entity and obtain specialized advice from professionals.

In summary, the main take-away from the 2013 research was go big or go home. Money, time and patience is needed before you can expect your overseas venture to take-off on the U.S. market.

A lot has changed in the U.S. since 2013 and in some ways doing business internationally became more difficult. Foreign-owned subsidiaries in the U.S. noticed new immigration rules making staffing harder while at the same time more important. The Trump Administration’s trade conflicts with China and Europe resulted in new import duties of up to 25% being imposed on products that used to be duty free or have very limited duties . However there have also been many technological developments making it easier for Dutch companies to do business in the U.S. remotely and shortening the lead time for success. Where we generally saw a lead time of 3 years before companies grew better results back in 2013, in 2020 there are many more ventures that became successful significantly faster after entering the market.

Almost half of the companies state that doing business in the U.S. became more difficult over the past three years. Most of these difficulties lay in immigration obstacles, political uncertainties, increasing regulatory challenges, and other administrative obstacles that needed to be overcome before you’re up and running. This explains why one of the main tips from existing Dutch ventures is to hire a legal and fiscal specialist to assist in the set-up of your U.S. venture. Although there are some challenges, Dutch ventures are overall extremely positive about their U.S. expansion and the potential that the U.S. market has to offer.

Get the latest insights from the 2020 ‘Dutch Ventures in the United States’ research project on how to successfully expand to and build your business in the U.S. market.

 

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