niewinsgewendheid

Niewinsgewendheid is a Dutch term that denotes the lack of profitability or the state of not being financially profitable for a project, investment, or activity. It describes situations where expected or realized returns fail to meet required thresholds, according to the criteria used in financial, economic, or strategic assessments.

Measurement and interpretation often rely on profitability indicators such as return on investment (ROI), net present value (NPV), and internal rate of return (IRR), typically with a specified hurdle rate and time horizon. Profitability can be evaluated from financial, economic, or social perspectives; a project may be ekonomically unprofitable even if it yields private losses, yet still provide social or strategic value.

Causes of niewinsgewendheid include high initial capital costs, low or uncertain demand, pricing pressures, regulatory barriers, unfavorable financing terms, or suboptimal project design. Externalities and opportunity costs can also affect the profitability picture, sometimes masking or amplifying unprofitability.

Implications vary by context. For businesses, niewinsgewendheid can lead to cancellation, restructuring, or changes in scope. For governments and organizations, unprofitable investments may still be pursued for public interest, social welfare, or long-term strategic goals, sometimes supported by subsidies or cross-subsidization.

Context and nuance: the term emphasizes the distinction between private profitability and broader value. It is often used in project appraisal, cost-benefit analyses, and debates about subsidies, tenders, or public-private partnerships.