[whatever1]

Neither France nor Germany have access to the high-risk capital that American startups enjoy.

Layoff protections and entrepreneurship in this case have a correlation but not a causation relationship.

If your thesis was correct startups would thrive in States with absolutely zero protections, yet the most successful tech startups are in the most “stringent” (for American standards) State. California.

[Esophagus4]

Even if it is the most stringent, California is still an at-will state. You can fire people for any reason at any time, minus protections for discrimination or retaliation, etc.

France and Germany require a lot more bureaucratic red tape (documentation, severance pay, notice periods, and justification). I have not seen this personally in France, but I have in Germany and it was a nightmare. I will be very careful about hiring in Germany next time.

An incredible amount of capital is in the United States for a reason (you're on a website of those capital providers). While termination protocol is obviously not the only reason, it is undeniably one of the many that contribute to the States having the most favorable environment to build a high growth, innovative company.

[disgruntledphd2]

I look forward to Americans realizing that it was the dollar all along at some point in the next fifty years.

[Esophagus4]

Well in fifty years, I likely won’t be here judging by life expectancy numbers… so I guess it’s a moot point for me.

Kidding aside, it’s a whole bunch of pieces. Including the dollar, including the friendly regulatory environment, including friendly tax treatment for founders (which European nations are starting to adopt), including small areas with lots of great schools, plus those schools helping to connect founders with capital, plus gobs of money running around looking for high risk opportunities, plus…

It’s not just the ability to fire someone, and it’s not just the dollar.

[iseletsk]

California prohibits non-competes, which is one of the reasons why so many new start-ups are created here. So, while it is not the most 'business' state, it is actually very startup-friendly.

[disgruntledphd2]

Yeah, and Sweden's success in startups also argues against the notion that it's hire and fire fast.

And if you're a loss making business like most startups, it's easier to lay people off even in Europe.