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The Dutch government offers different types of support to entrepreneurs, from money to making life easier. If your idea meets the criteria for one of the subsidy programs You can apply to the Netherlands Enterprise Agency (RVO) for grants.

Subsidies are essentially government support of certain industries or activities that may not be profitable without such support. Subsidies are typically provided to assist struggling sectors and to encourage new developments or to promote specific policies or social good. They could succeed economically however at the expense of other groups (for instance the food subsidy aids farmers while increasing prices for consumers) Or, they may be unsuccessful economically, but accomplish objectives in terms of culture or policy.

Subsidies offered by the government can take many forms. These include tax breaks, grants and rebates, as well as direct cash payments to suppliers or customers. They may be indirect, too, such as road tax that is paid by all motorists, not just those who use roads or railway access fees that are not limited to passenger trains.

Advocates of subsidy programs claim that they can boost efficiency of the economy by protecting from international competition, or by encouraging domestic production. They also can help combat the effects of market failures, like externalities and information inequalities. However, critics argue that these policies have negative consequences, ranging from inequality to corruption and they can also hinder more efficient and equitable public spending. They can also create perverse incentives. A company that is receiving a government subsidy might be enticed to donate to politicians. This can result in “regulatory taking” and rent-seeking.