Bunq's CEO cautions that narrow-minded attitudes are driving Dutch entrepreneurs away.

      Ali Niknam has developed the Dutch fintech Bunq into one of the largest neobanks in Europe. However, he is concerned that the Netherlands is increasingly pushing entrepreneurs away. The founder and CEO of Bunq is troubled by the country's business mentality, believing that risk-aversion, rising insularity, and a lack of ambition are driving talent to seek opportunities elsewhere. “Many of the best entrepreneurs I know have either left or are thinking about leaving,” Niknam shared with TNW.

      Surveys support his concerns. A poll conducted last year revealed that nearly one in five Dutch entrepreneurs were considering relocating, an increase from nearly one in eight in 2023. Another study indicated that 24% of large companies were contemplating moving their operations abroad, nearly doubling from the previous year.

      Tech scaleups are also thinking about exits. Bird, one of the country’s prominent software unicorns, recently announced its plans to relocate, with the CEO attributing this decision to “over-regulation” and an unfavorable environment for tech businesses.

      Niknam, who will speak at the TNW Conference on June 20 in Amsterdam, offers his own criticisms of the Dutch business environment, labeling the level of support for entrepreneurs as “among the worst” he has encountered. Yet he retains strong belief in the talent present in the country. “I know of very few countries that possess such incredible, creative, intelligent individuals as the Dutch,” he commented.

      Those individuals have played a crucial role in Bunq’s swift growth.

      Building bridges at Bunq

      Niknam conceived the idea for Bunq following the 2008 financial crisis, which he believes was partly due to groupthink in traditional banks. In 2012, he established Bunq to provide an alternative.

      To foster a new banking approach, Niknam aimed to embrace a variety of ideas. He emphasizes that proposals can be submitted anonymously, even to him. “On the one hand, that’s beneficial for the company — the best ideas come forward. On the other hand, it promotes fairness, as only the quality of the idea matters, not personal connections, upbringing, or education.”

      This strategy yielded quick results. In 2015, Bunq became the first Dutch company in 35 years to secure a greenfield banking license and has since grown into Europe’s second-largest neobank after Revolut, achieving profitability. The company now claims over 17 million users with more than €8 billion in deposits.

      Outside of Bunq, however, Niknam perceives a country that is growing more insular. He believes the Netherlands is straying from its internationalist roots, negatively impacting its tech ecosystem and driving talent away. “Historically, the Netherlands has been very entrepreneurial and international. When this country begins to retreat and close its doors, that’s when the situation worsens.”

      He also points out that the country’s large pension funds shy away from supporting Dutch startups due to the lower expected returns. “They understand that the returns will be lesser,” he adds. “Why are the returns lower? Because it’s a small country that is retreating and starting to focus inward.”

      He contrasts this with the Baltic region, which has gained admiration for its optimistic, open, and rapidly growing tech ecosystem. Niknam senses that many in the Netherlands take their advantages for granted. “It’s perhaps a bit of an entitlement issue — we’ve forgotten that all these wonderful things we enjoy today were achieved through hard work,” he remarks.

      Having been born in Canada to Iranian parents and living in both the Netherlands and the US, Niknam possesses diverse cultural experiences.

      Niknam believes that the Netherlands has become overly cautious and inward-focused. Despite the liberal image, Dutch society can be surprisingly conservative. This caution, he argues, is ingrained in the culture, even reflected in local proverbs. One proverb advises: “Steek je kop niet boven het maaiveld uit,” which loosely translates to “Don’t stick your head above the mowing line.” If you do, it’s at risk of being cut off.

      In Niknam’s view, this mindset discourages aspiring entrepreneurs. “Success is not only uncelebrated, but you’re almost blamed for being successful,” he states.

      The international return

      The Netherlands is also losing its attractiveness to international talent. Research from last year shows that over nine in ten expats and migrant workers no longer consider moving to work in the Netherlands.

      Tech companies have raised significant concerns about the potential loss of access to global talent. ASML, the largest company in the Netherlands, has even threatened to relocate due to the country’s stricter stance on migrants.

      Peter Wennink, the former CEO of ASML, who will also speak at the TNW Conference, cautioned against losing access to skilled workers. “If we can’t attract these individuals here, we’ll find them in Eastern Europe, Asia, or the United States,” he said.

      Nevertheless, Niknam is hopeful that change is possible