The growth of various businesses in Amsterdam is stimulated by various factors. First, one should speak about the availability of skilled labor force. Approximately, 44 percent of the adult population has higher education (Consultants International, 2010). Thus, entrepreneurs can find a great number of knowledge workers in this city. This is one of the social issues that can be identified.
Additionally, this city can offer about 2 million meters of industrial and office space which is less expensive than in other European cities (Consultants International, 2010). Additionally, Amsterdam is ranked among those cities with the most developed infrastructure (Bochove, 2008, p. 231). For example, much attention should be paid to numerous ports of Amsterdam and IT infrastructure (Consultants International, 2010).
Additionally, it is important to speak about the taxation in the Netherlands. At present, the corporate tax is 25 percent (Ernst & Young 2013). However, there are several important deductions. For instance, the costs, which are related to research and development, are deducted (Ernst & Young 2013).
These legal norms foster innovation in many businesses. Apart from that, one should focus on the employment relations that are established in Amsterdam. One of the details that should be considered is low dismissal protection (Barry, 2011, p. 265).
In other words, employers have an opportunity to downsize the labor force. This is why entrepreneurs want to work in Amsterdam. Moreover, entrepreneurs find it easy to interact with the city administration and local government. They do not have to struggle with bureaucratic difficulties while operating in Amsterdam.
Finally, the growth of businesses can be attributed to the intensity of competition. In Amsterdam, one cannot find enterprises that can be regarded as monopolies. Under such circumstances, organizations have to improve their performance. Finally, it is necessary to take into account the ethical and cultural factors.
In particular, scholars often speak about the influence of Protestant work ethics which lays stress on work as one of the virtues (Ihalainen 2005, p. 548). This cultural norm promotes entrepreneurship. These are the forces that contribute to the growth of businesses in Amsterdam.
References
Barry, M 2011, Research Handbook of Comparative Employment Relations, Edward Elgar Publishing, New York.
Bochove, C 2008, The Economic Consequences of the Dutch: Economic Integration Around the North Sea, 1500-1800, Amsterdam University Press, Amsterdam.
Consultants International 2010, Doing Business in Amsterdam. Web.
Ernst & Young 2013, Worldwide Corporate Tax Guide: the Netherlands. Web.
Ihalainen, P 2005, Protestant Nations Redefined: Changing Perceptions of National Identity in the Rehetoric of the English, Dutch, and Swedish Public Churches, 1685-1772, BRILL, New York.