Economic smarts Sapph understands only too well

Despite the consequences of the credit crunch, the Dutch lingerie brand Sapph keeps on growing. According to founder Cor van Schoonhoven and co-owner  Rob Heilbron, the secret is investing, keeping the money flowing. Not sitting still on a pile of money, like the banks seem to be doing.

Heilbron: 'The banks have a large responsibility in keeping the Dutch economy afloat.' Not my words, but Dutch Prime Minister Jan Peter Balkenende's, calling the banks into action during a VNO-ING dinner last November 5th. And he's right. With all the government guarantees and government lending, there is no reason for the banks' inertia. It really doesn't testify to their guts or entrepreneurial spirit. The government has shown generous courage in taking unorthodox measures, and now it's the banks' turn to allow the wheels of the economy turning again. Except that they seem to be hoarding rather than lending. And that's having disastrous effects on small startup companies almost entirely dependent on their credit lines with the banks. Credit has dried up, despite the many billions that governments have put into the banks.

Sapph's wheels do keep turning, against the current we'll keep on investing. Call it guts, but I think it's what entrepreneurs do. The results speak for themselves, Sapph is showing strong growth and our target is a 75 million euro turnover after being in business for only five years. It's only too bad other companies aren't allowed to keep the economy on the move just like Sapph, just because of credit being kept unavailable by the banks sitting on the Taxpayers money!