Subsidy Programs and Financing For Entrepreneurs

The Dutch government supports entrepreneurs in different ways, ranging from giving money to making the process easier. If your idea meets the requirements for one of the subsidy myrrdin-inc.com/2020/03/10/what-digital-technologies-should-be-invested-in-2020/ programs you can apply to the Netherlands Enterprise Agency (RVO) for the grant.

Subsidies are basically support from the government for certain activities or industries that would not be profitable without it. Subsidies are typically provided to assist struggling sectors or to promote new developments or to promote specific policies or social good. They can be economically successful but they will be costly to other groups (for instance a food subsidy helps farmers, but increases prices for consumers), they may also fail economically, but they accomplish cultural and political goals.

Subsidies offered by the government are available in a variety of forms. They include grants, tax breaks and rebates as well as direct cash payments to customers or suppliers. They may be indirect, too like road tax that is paid by all motorists, not only those who use roads or railway access charges that do not just apply to trains for passengers.

The advocates of subsidies claim that they can improve the efficiency of an industry by safeguarding it from competition from abroad, or by promoting local production. They also can help combat market failures, such as externalities and information inequalities. However, critics claim that such policies can have negative effects, from corruption to inequality, and that they block more equitable and efficient public spending. They also can result in perverse incentives. For instance, a business that receives a government subsidy could be enticed to give money to politicians, contributing to “regulatory capture” and rent seeking.