Oferta

Subsidy Programs and Financing For Entrepreneurs

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

Subsidies are the government’s support of certain industries or activities that may not be profitable without this support. Subsidies are usually provided to help struggling sectors as well as to promote new innovations or to promote particular policies or social goods. They could be successful economically however at the expense of other groups (for instance, a food subsidy helps farmers while raising prices for consumers) or they could be unsuccessful economically, but accomplish the goals of culture or politics.

Government subsidies are available in a variety of forms. These include tax breaks, grants and rebates as well as direct cash payments made to customers or suppliers. They can be indirect too, such as road tax, which is a payment made by all motorists, not only those who use roads or railway access charges that are not limited to passenger trains.

Supporters of subsidy programs argue that they increase economic efficiency by ensuring protection from competition from outside sources or increasing domestic production. They also serve to counteract market failures like externalities and information inequalities. But, critics contend that these policies can have negative effects, from corruption to inequality, and that they block more efficient and equitable public spending. They can also create perverse incentives. A company that receives a government subsidy could be enticed to donate to politicians. This can lead to „regulatory taking” and rent-seeking.