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

Subsidies are basically support from the government for specific industries or activities which would not be profitable without it. Subsidies typically are provided to assist struggling sectors as well as to promote new innovations or to promote specific policies or social goods. They can be successful economically but at the expense of other groups (for instance the food subsidy can help farmers while increasing prices for consumers) They could also not be successful economically but still achieve the objectives of cultural or political.

Subsidies from the government can be in a variety of forms. These include tax breaks, grants and rebates and direct cash payments made to customers or suppliers. They can also be indirect, like road taxes that are paid by all motorists rather than only those who use the roads, or railway track access fees which are not exclusively imposed for passenger trains.

Supporters of subsidy programs argue that they increase economic efficiency by providing protection from international competition other or by stimulating domestic production. They can also help counter market failures, such as externalities and information inequalities. However, critics claim that such policies can have negative effects, ranging from inequality to corruption and they can also hinder more efficient and equitable public spending. They also can create unjust incentives. For instance, a company that is benefited by a government subsidy will have an incentive to donate to politicians, contributing to “regulatory capture” and rent-seeking.