The Dutch government supports entrepreneurs in different ways, ranging from giving money to making things easier. If your idea is in line with the criteria of one of the subsidy programs, then you can apply for a grant through the Netherlands Enterprise Agency (RVO).
Subsidies are essentially government support of certain sectors or activities that would not be profitable without the support. Subsidies typically are provided to help struggling sectors 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 example food subsidies help farmers while raising prices for consumers) They could also fail economically, but they achieve the objectives their explanation of cultural or political.
Government subsidies can come in many forms. They include tax breaks, grants and rebates as well as direct cash payments made to suppliers or customers. They can also be indirect, such as road taxes that are paid by all motorists, rather than only those who use the roads, or railway track access charges that are not imposed exclusively for passenger trains.
Advocates for subsidies say they can improve the effectiveness of an economy by safeguarding it from competition from abroad, or by promoting local production. They can also be beneficial to combat market failures, like externalities and information inequalities. The opposition claims that these policies could have negative effects that range from inequality to corruption, and they can also hinder more efficient and equitable spending by the government. They also create negative incentives. For instance, a firm that is benefited by a government subsidy is likely to be motivated to give money to politicians, thus contributing to “regulatory capture” and rent-seeking.