The Dutch government helps entrepreneurs in a variety of ways, from providing money to making it easier. If your idea meets the criteria of one of the subsidy programs, you may apply for a grant from the Netherlands Enterprise Agency (RVO).
Subsidies are the government’s support for certain industries or activities that may not be profitable without this support. They are typically provided to help struggling industries or encourage new innovations, or to promote a particular policy or social good. They could be successful economically, but at the expense of other groups (for instance the food subsidy aids farmers, but increases prices for consumers) or they could not be successful economically but still achieve the goals of culture or politics.
Subsidies offered by the government can be in a variety of forms. They include grants, tax breaks and rebates in addition to direct cash payments to customers or suppliers. They can also be indirect, too like road tax, which is a payment made by all motorists, not only those who travel on roads, or railway access charges which are not restricted to passenger trains.
The advocates of subsidies claim that they can improve the efficiency of an economy by safeguarding it from competition from abroad or by encouraging local production. They also aid in combating market failures, such as externalities and information inequalities. Some critics argue that these policies can cause negative consequences, ranging from inequality to corruption, and that they crowd-out more efficient and equitable spending by the government. They also can create unjust incentives. A company that is receiving a government subsidy might be enticed to donate to politicians. This can lead to “regulatory capture” and rent-seeking.
