The Dutch government offers various types of assistance to entrepreneurs, from funding to making life easier. If your idea fits the requirements of one of the subsidy programs, it is possible to apply for a grant through the Netherlands Enterprise Agency (RVO).

Subsidies are basically government assistance for specific industries or activities which wouldn’t be a success without it. Subsidies typically are provided to help struggling sectors or to promote new developments or promote particular policies or social goods. They could be profitable economically but they will be costly to other groups (for example food subsidies help farmers, but increases prices for consumers) However, they can also fail economically, but they accomplish objectives in terms of culture and political.

Government-provided aid can take many forms, such as grants or tax breaks, rebates or direct cash payments to customers or suppliers as well as price controls. They may also be indirect, like road taxes that are paid by all motorists rather than only those who drive on the roads, or railway track access charges which are not exclusively imposed for passenger trains.

Supporters of subsidy programs claim that they can boost efficiency in the economy by providing protection from international competition or by promoting domestic production. They can also aid in overcoming the effects of market failures, like externalities and information inequalities. However, critics claim that such policies have negative consequences, ranging from corruption to inequality, and they can also hinder more equitable and efficient public spending. They also can create negative incentives. For instance, a company that is benefited by a government subsidy will have an incentive to donate to politicians, contributing their explanation to “regulatory capture” and rent-seeking.