The Dutch government provides a variety of support to entrepreneurs, from funding to making life easier. If your idea is in line with the criteria of one of the subsidy programs, you may apply for a grant from the Netherlands Enterprise Agency (RVO).
Subsidies provide government support for certain sectors or activities that would not be profitable without such support. They are usually provided to help struggling sectors, encourage new developments, or to promote a specific policy or social good. They may be successful economically but they will be costly to other groups (for example, a food subvention helps farmers, while raising prices for consumers) It is also possible that they fail economically, but they accomplish political and cultural goals.
Subsidies provided by the government can take many forms. These include tax breaks, grants and rebates in addition to direct cash payments to suppliers or customers. They can be indirect, too like road tax which is paid by all motorists, not only those who drive, or railway access charges which are not restricted to trains for passengers.
Subsidy advocates claim that they can improve the effectiveness of an economy by safeguarding it from competition from abroad, or by promoting local production. They can also be beneficial to counteract market failures, like externalities and information imbalances. However, critics argue that these policies can have negative consequences, ranging from inequality to corruption and that they crowd out more equitable and efficient public spending. They also can create unjust incentives. A business that receives a government subsidy may be tempted to make a donation to politicians. This can result in “regulatory capture” and rent-seeking.
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