On 10 July, the Dutch government announced that it will introduce a new legal designation to better recognize Dutch social enterprises.
New Legal Recognition for Social Enterprises in the Netherlands
The announcement follows the conclusion of several studies including the one conducted by KPMG and Nyenrode (2020), commissioned by the Ministry Economic Affairs and Climate, that show social enterprises need more recognition in the Netherlands since existing legal frameworks do not adequately encompass the social impact aspect of these organisations.
The Dutch government is responding to the call of social entrepreneurs to be legally recognized. With the introduction of the besloten vennootschap maatschapelijk (BVm) designation or private limited company designation, social entrepreneurs will be able to legally lay down their social mission in a recognized manner and create clarity for the outside world. This recognition is a crucial step towards an economy that is not based on profit maximisation.
Additional Support Measures
Along with the announcement of the BVm, the Ministry of Economic Affairs and Climate also plans to establish a ‘social entrepreneurship’ working group to promote knowledge sharing in the field of social entrepreneurship between governments.
The government will make the inclusion of social enterprises into its purchasing and tendering policies a top priority.
The government considers social entrepreneurship important, which is why better recognition and recognition for this type of entrepreneurship is necessary.
– Mona Keijzer, State Secretary for Economic Affairs and Climate
While many details of the new legislation are pending, we at Euclid Network applaud this important step that will give social enterprises in the Netherlands the legal representation and support they need.