TABS | Crossing Continents: Benelux Ventures Navigating U.S. Expansion

Executive Summary

In 2020, TABS conducted its DVITUS (Dutch Ventures in the United States) research, examining the experiences and challenges of Dutch companies expanding to the U.S. This study concluded that while success in the U.S. could be achieved relatively quickly, investment and preparation are crucial due to increasing complexities in international business.

TABS performed another research study. This time broadening the scope to include companies from Belgium and Luxembourg. This was done in collaboration with Belcham and Luxembourg Trade and Investment New York to get a better understanding of the unique challenges and opportunities faced by Benelux companies entering the US market.

While some challenges identified from 2020 remained, new obstacles and changes have emerged. Notably, conducting business in the U.S. has become increasingly difficult, especially for Benelux ventures operating in the US market without a local entity. Operating via a local entity offers more legal protection, operational efficiency and credibility to companies doing business in the US, impacting its overall performance.

The study also underscores the importance of investing in understanding the cultural, legal, and operational differences. Benelux ventures must adapt to the U.S. business environment, which includes different cultural norms, business practices, and regulatory requirements from what they are used to in their home country. Adapting to cultural differences is particularly crucial when setting up a team and attracting skilled labor. A proactive approach by seeking advice from experts is therefore essential to navigate these challenges and enhance operational efficiency.

The new research reaffirms that while the U.S. market offers substantial opportunities, success hinges on extensive preparation for a successful market entry and having sufficient resources to take the leap is also crucial.

Regardless of increasing challenges in doing international business, the Benelux ventures are overall satisfied with their US expansion. They state that the US has enormous potential and offers the opportunity to rapidly scale their business in ways that aren’t possible in Benelux.

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Compliments of TABS – a member of the EACCNY