Subsidy Programs and Financing For Entrepreneurs

The Dutch government assists entrepreneurs in a variety of ways, ranging from giving money to making things easier. If your idea is eligible for one of the subsidy programs You can apply to the Netherlands Enterprise Agency (RVO) for grants.

Subsidies are basically government assistance for certain activities or industries that would not be profitable without it. Subsidies are typically provided to help struggling industries, promote new developments, or promote particular policies or social goods. They can be successful economically but at the expense of other groups (for instance food subsidies help farmers, but increases prices for consumers) or they could fail economically but achieve objectives in terms of culture or policy.

Government subsidies can take many forms. These 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 passenger trains.

Subsidy advocates claim see this here that they can boost the effectiveness of an economy through safeguarding it from competition from abroad, or by promoting local production. They can also be beneficial to combat market failures, like externalities and information inequalities. Many critics say that these policies can have negative effects ranging from inequality to corruption, and that they hinder more efficient and equitable spending by the government. They also create perverse incentives. For instance, a firm that receives a government subsidy could be enticed to make donations to politicians, which can contribute to "regulatory capture" and rent seeking.