[R0b0t1]

I have a lot of friends and acquaintances in Europe. From the ones who tried to start a business I have been told the issue is taxes and regulation. It is nearly impossible for someone with limited initial income to maintain the appropriate legal entities. The overhead you pay just for existing in Europe makes small European businesses noncompetitive. There are other valid issues highlighted here, but first and foremost this is what I have seen.

[dopidopHN]

I've been involved in the French/Parisien startup world for half a decade. If you pay taxes as a startup you missed a few turn and you should talk to a accountant. ( At least the first 5 years )

Regulations can also be a opportunities. Your client might start dedicating money to fulfill that regulation. If you are able to help your client with that in a timely manner, it's easy money. ( B2B setting )

To the point: Our main frustration as a high growth entity was how hard it was to jump from market to market.

We got into Spain because nobody was there, cool. let's replicate in Germany. Oups. Total failure and the brand is damaged.

Every single country is a battle that you have to understand intimately. We got a way out thought a random re-seller in Holland that started distributing us in China.

Our roadblocks were made of small market with already implanted competitor. Not regulation or taxes.

( To be fair: we were selling hard/softaware on very niche and finite market. )

[toyg]

As a counterpoint - that's not what I've experienced in the UK. I know it's arguably one of the "friendliest" legislations, but still, red tape wasn't a big deal.

From what I heard from others, the main issue is access to credit and funding. European investors are risk-averse and ask for too much in return, probably because their experience is in traditional low-margins sectors; sadly that's a vicious circle, where low margin begets low margin and things never improve. Also, people just don't like to pull the insane working hours that are normal in the US.

[R0b0t1]

The UK is the sole exception afair. It's not just access to funding because many businesses in the US are created with no external funding. If you attempt to do that in mainland Europe you're going to bankrupt yourself just setting up the company. In most US states you just pay ~$100 and can 1099 your first employees.

[disgruntledphd2]

Europe is not a coherent place, much of the important regulations are national. At the very least, one should divide between Northern/Western Europe (more entrepreneurial) and Southern Europe (more regulations, less money and less entrepreneurship).