The Dutch government offers different types of assistance to entrepreneurs, ranging from financial assistance to making life easier. If your idea meets the criteria for one of the subsidy programs you can apply to the Netherlands Enterprise Agency (RVO) for a grant.

Subsidies are basically government support of certain industries or activities that might not be profitable without the support. They are usually given to aid struggling sectors and encourage innovation or to promote a specific policy or social good. They can be financially successful but they are costly to other groups (for instance food subsidies help farmers, but increases prices for consumers) However, they can also fail economically, yet achieve the goals of culture and politics.

Subsidies provided by the government can come in many forms. These include grants, tax breaks and rebates in addition to direct cash payments to customers or suppliers. They can be indirect too like road tax which is paid by all motorists, not only those who travel on roads, or railway access fees that do not just apply to trains for passengers.

Advocates for subsidies say they can boost the efficiency of an economy by protecting it from international competition or by promoting local production. They also can help combat market failures such as externalities and information inequalities. But, critics contend that these policies have negative effects, from inequality to corruption and that they crowd out more equitable and efficient public spending. They also can result in perverse incentives. A company that receives government subsidy could look at this web-site be enticed to donate to politicians. This can lead to “regulatory taking” and rent-seeking.