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Subsidy Programs and Financing For Entrepreneurs

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

Subsidies provide government support for certain activities or industries which would not be profitable without it. They are typically provided to assist struggling sectors or encourage new innovations, or to promote a particular policy or social good. They could be successful economically but at the expense of other groups (for example the food subsidy aids farmers while increasing prices for consumers), or they may not be successful economically but still achieve objectives in terms of culture or policy.

Government-provided subsidies can come in a variety of forms, such as grants tax breaks, rebates and direct cash payments to customers or suppliers as well as price myrrdin-inc.com/2020/03/10/what-digital-technologies-should-be-invested-in-2020 controls. They can be indirect too, such as road tax which is paid by all motorists, not only those who drive, or railway access fees that are not limited to passenger trains.

Advocates of subsidy programs argue that they can increase efficiency in the economy by providing protection from international competition, or by encouraging domestic production. They also can help combat market failures like externalities and information asymmetries. Some critics argue that these policies could have negative consequences ranging from corruption to inequality, and they can also hinder more efficient and equitable spending by the government. They also can create perverse incentives. For instance, a company that receives a government subsidy will have an incentive for donating to politicians, contributing to “regulatory capture” and rent seeking.

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