The Dutch government aids entrepreneurs in different ways, from providing money to making the process easier. If your idea fits the criteria of one of the subsidy programs, you can apply for a grant through the Netherlands Enterprise Agency (RVO).
Subsidies are the government’s support of certain industries or businesses that might not be profitable without the support. Subsidies usually are offered to help struggling industries as well as to promote new innovations or promote particular policies or social goods. They can be successful economically however, at the expense of other groups (for example the food subsidy aids farmers, while increasing prices for consumers) They could also be unsuccessful economically, but accomplish the objectives of cultural or political.
Government-provided subsidy can take a variety of forms, including grants or tax breaks, rebates and direct cash payments to customers or suppliers as well as price controls. They can also be indirect, like road taxes that are paid by all motorists, rather than just those who use the roads, or railway track access fees which are not exclusively imposed for passenger trains.
The advocates of subsidies claim that they can improve the effectiveness of an economy through protecting it from international competition, or by promoting local production. They can also aid in overcoming market failures like externalities and information asymmetries. However, critics argue that these policies can have negative effects, ranging from inequality to corruption and that they block more efficient and equitable public spending. They also can create unjust incentives. For instance, a firm which receives a government subsidy is likely to be motivated to give money to politicians, which can contribute to “regulatory capture” and rent-seeking.
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