The Dutch government assists entrepreneurs in different ways, ranging from giving money to making things easier. If your idea is in line with the requirements of one of the subsidy programs, you may apply for a grant from the Netherlands Enterprise Agency (RVO).

Subsidies are essentially government support for certain industries or activities that may not be profitable without this support. They are usually offered to aid struggling sectors, encourage new developments, or to promote a specific policy or social good. They may be successful economically but they are costly to other groups (for instance the food subvention aids farmers, while raising prices for consumers), they may also fail economically, yet achieve objectives in terms of culture and political.

Subsidies from the government can come in many forms. They include tax breaks, grants and rebates, as well as direct cash payments made to customers or suppliers. They can be indirect, too, such as road tax, which is paid by all motorists, not only those who use roads or railway access charges that do not just apply to trains for passengers.

Supporters of subsidy programs argue that they increase efficiency in the economy by providing protection from competition from abroad or by stimulating domestic production. They can also be beneficial to combat market failures, like externalities and information imbalances. But, critics contend that such policies can have negative effects, from inequality to corruption and that they block more efficient and equitable public spending. They also create perverse incentives. For instance, a business which receives a government subsidy is likely myrrdin-inc.com/2021/07/13/generated-post-2/ to be motivated to give money to politicians, thereby contributing to “regulatory capture” and rent-seeking.