The Dutch government offers a variety of support to entrepreneurs, ranging from money to making life easier. If your idea fits the requirements of one of the subsidy programs, then you can apply for a grant from the Netherlands Enterprise Agency (RVO).
Subsidies are basically government support for certain industries or activities that would not be profitable without it. They are usually offered to help struggling industries, encourage new developments, or promote a specific policy or social good. They can be successful economically however at the expense of other groups (for instance, a food subsidy helps farmers while raising prices for consumers), or they may fail economically, but they achieve objectives in terms of culture or policy.
Government-provided subsidies can take many forms, including grants or tax breaks, rebates, direct cash payments to customers or suppliers and price control. They can be indirect as well like road tax which is paid by all motorists, not only those who use roads or railway access charges which are not restricted to trains for passengers.
Advocates of subsidy programs claim that they can boost efficiency in the economy by providing protection from international competition or by encouraging domestic production. They also serve in preventing market failures like externalities and information inequalities. Critics argue that these policies could have negative effects ranging from corruption to inequality and that they hinder more efficient and equitable spending by the government. They also create unjust incentives. For instance, a business that benefits from a government-granted subsidy may be enticed to donate to politicians, contributing to “regulatory capture” and rent-seeking.