The Dutch government provides a variety of support to entrepreneurs, ranging from financial assistance to making life easier. If your idea meets the criteria for one of the subsidy programs you may apply to the Netherlands Enterprise Agency (RVO) for grants.

Subsidies are basically government assistance for certain industries or activities which would not be profitable without it. Subsidies usually are offered to help struggling industries, promote new developments, or promote specific policies or social benefits. They can be financially successful but they are costly to other groups (for instance a food subsidy helps farmers, but raises prices for consumers) It is also possible that they be unsuccessful economically, but still achieve the goals of culture myrrdin-inc.com/2020/03/30/digital-technology-in-the-modern-world and politics.

Government-provided subsidies can take many forms, such as grants, tax breaks, rebates as well as direct cash payments to suppliers or customers, and price controls. They may also be indirect, like road taxes that are paid by all motorists, rather than just those who use roads, or railway track access fees that are not imposed exclusively for passenger trains.

The advocates of subsidy programs argue that they can increase efficiency of the economy by protecting from international competition or by increasing domestic production. They can also help counter market failures such as externalities and information asymmetries. However, critics claim that these policies have negative effects, from inequality to corruption and that they impede more efficient and equitable public spending. They also create negative incentives. For instance, a firm which receives a government subsidy could be enticed to donate to politicians, thus contributing to “regulatory capture” and rent seeking.

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