The Dutch government assists entrepreneurs in many ways, from providing cash to making it easier. If your idea meets the criteria for one of the subsidy programs you may apply to the Netherlands Enterprise Agency (RVO) for grants.
Subsidies provide government support for specific industries or activities which wouldn’t be a success without it. They are usually provided to help struggling sectors or to encourage new developments or to promote a specific program or social good. They may succeed economically but at the expense of other groups (for example the food subsidy can help farmers while increasing prices for consumers) or they could not be successful economically but still achieve objectives in terms of culture or policy.
Government-provided subsidies can take many forms, such as grants tax breaks, rebates as well as direct cash payments to customers or suppliers, and price controls. They may be indirect, too like road tax which is paid by all motorists, not only those who use roads, or railway access charges which are not restricted to trains for passengers.
Subsidy advocates claim that they can increase the effectiveness of an economy by safeguarding it from competition from abroad or by promoting local production. They also serve in preventing market failures like externalities and information inequalities. However, critics claim that such policies can have negative consequences, ranging from inequality to corruption and that they block more efficient and equitable public spending. They also create perverse incentives. A company that receives government subsidy might be enticed to make a donation to politicians. This could result in “regulatory taking” and rent-seeking.