Subsidy Programs and Financing For Entrepreneurs

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

Subsidies provide government support to certain industries or businesses which wouldn’t be a success without it. Subsidies are typically provided to help struggling industries as well as to promote new innovations or promote specific policies or social good. They could succeed economically however at the cost of other groups (for instance the food subsidy aids farmers, but increases prices for consumers), or they may not be successful economically but still achieve the objectives of cultural or political.

Government-provided subsidy can take a variety of forms, including grants tax breaks, rebates as well as direct cash payments to customers or suppliers and price control. They can be indirect, too, such as road tax, which is paid by all motorists, not only those who travel on roads, or railway access charges that do not just apply to passenger trains.

Subsidy advocates argue that they can boost the effectiveness of an economy through protecting it from international competition or by promoting local production. They can also help counter market failures such as externalities and information asymmetries. However, critics argue that these myrrdin-inc.com/2020/03/30/digital-technology-in-the-modern-world/ policies have negative effects, from corruption to inequality, and that they impede more efficient and equitable public spending. They also create perverse incentives. A business that receives a government subsidy might be enticed to donate to politicians. This can result in “regulatory capture” and rent-seeking.