The Dutch government assists entrepreneurs in different ways, ranging from giving money to making things easier. If your idea is eligible for one of the subsidy programmes you can apply to the Netherlands Enterprise Agency (RVO) for the grant.
Subsidies provide government support of certain industries or activities that may not be financially viable without this support. Subsidies usually are offered to help struggling industries and to encourage new developments or promote specific policies or social goods. They may be successful economically however, they come at a cost to other groups (for example the food subvention aids farmers, while raising prices for consumers) It is also possible that they be unsuccessful economically, but still achieve cultural and political goals.
Government-provided aid can take many forms, including grants or tax breaks, rebates, direct cash payments to customers or suppliers, and price controls. They may also be indirect, for instance, road taxes that are paid by all motorists rather than just those who travel on roads, or railway track access charges that are not levied exclusively for passenger trains.
Subsidy advocates claim that they can increase the effectiveness of an economy through protecting it from international competition or by encouraging local production. They also can help combat market failures such as externalities and information asymmetries. The opposition claims that these policies can cause negative consequences, ranging from corruption to inequality and that they crowd-out more efficient and equitable spending by the government. They also create perverse incentives. For instance, a company which receives a government subsidy will have an incentive to give money to politicians, thus contributing to “regulatory capture” and rent seeking.
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