Subsidy Programs and Financing For Entrepreneurs

The Dutch government offers different types of support to entrepreneurs, ranging from money to making life easier. If your idea fits the requirements of one of the subsidy programs, you can apply for a grant from the Netherlands Enterprise Agency (RVO).

Subsidies provide government support for certain activities or industries which would not be profitable without it. Subsidies are usually provided to help struggling sectors and to encourage new developments or to promote specific policies or social goods. They could be profitable economically but they are costly to other groups (for instance the food subvention aids farmers, but raises prices for consumers) It is also possible that they fail economically, but achieve political and cultural goals.

Government-provided subsidy can take a variety of forms, such as grants and tax breaks, rebates, direct cash payments to suppliers or customers as well as price controls. They may also be indirect, like road taxes that are paid by all motorists rather than just those who use roads, or railway track access charges that are not levied exclusively for passenger trains.

Advocates for subsidies say they can boost the effectiveness of an economy by protecting it from competition from outside or by promoting local production. They can also help to combat market failures, like externalities and information imbalances. Critics argue that these policies could cause negative consequences ranging from inequality to corruption, and that they hinder more efficient and equitable spending by the government. They also can create unjust incentives. For instance, a company that benefits from a government-granted subsidy could be enticed myrrdin-inc.com/2020/09/15/grants-for-digital-technologies-what-type-of-funding-options-are-available/ to give money to politicians, thereby contributing to “regulatory capture” and rent-seeking.