The Dutch government provides a variety of support for entrepreneurs, ranging from money to making life easier. If your idea is in line with the requirements of one of the subsidy programs, it is possible to apply for a grant from the Netherlands Enterprise Agency (RVO).
Subsidies are basically government assistance for specific industries or activities that wouldn’t be financially viable without it. Subsidies are usually provided to help struggling industries, promote new developments, or promote specific policies or social goods. They could succeed economically but at the expense of other groups (for example the food subsidy aids farmers, while increasing prices for consumers), or they may be unsuccessful economically, but accomplish the goals of culture or politics.
Subsidies offered by the government can take many forms. These include tax breaks, grants and rebates and direct cash payments to suppliers or customers. They may be indirect, too, such as road tax, which is a payment made by all motorists, not just those who use roads, or railway access charges that do not just apply to passenger trains.
Advocates for subsidies say they can boost the efficiency of an economy by protecting it from competition from outside or by promoting local production. They can also help counter market failures such as externalities and information asymmetries. However, critics claim that these policies can have negative effects, from inequality to corruption and that they crowd out more efficient and equitable public spending. They also can result in perverse incentives. For instance, a business that is benefited by a government subsidy may be enticed to donate to politicians, thereby contributing to “regulatory capture” and rent seeking.
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