The Dutch government offers various types of support for entrepreneurs, from money to making life easier. If your idea is eligible for one of the subsidy programmes, you can apply to the Netherlands Enterprise Agency (RVO) for grants.
Subsidies are basically support from the government to certain industries or businesses that wouldn’t be financially viable without it. They are usually provided to aid struggling sectors or encourage new innovations, or promote a specific policy or social good. They can be successful economically however at the cost of other groups (for instance the food subsidy aids farmers, while increasing prices for consumers) They could also fail economically, but they achieve objectives in terms of culture or policy.
Subsidies provided by the government can take many forms. These include grants, tax breaks and rebates in addition to direct cash payments to suppliers or customers. They may be indirect as well, such as road tax, which is paid by all motorists, not only those who travel on roads, or railway access fees that are not limited to passenger trains.
Supporters of subsidy programs argue that they can increase economic efficiency by ensuring protection from competition from outside sources or promoting domestic production. They can also aid in overcoming market failures such as externalities and information asymmetries. Critics argue that these policies can cause negative effects that range from corruption to inequality, and they can also hinder more efficient and equitable spending by the government. They can also create perverse incentives. For instance, a company that receives a government subsidy will have an incentive to make donations to politicians, contributing to “regulatory capture” and rent seeking.