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Why Does Sweden Have So Many Startups?

theatlantic.com

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Re: Why Does Sweden Have So Many Startups?

#11

Post by electic »

fc003153 wrote: post #10
nikanj wrote: post #4

Completely missed one of the most important points: It's easier to take risks, if those risks actualizing will not destroy your life. In the US, there's very little social safety net to catch you. If you get sick before the startup is big enough, it means personal bankruptcy - and no medical treatment. Missing revenue targets can mean missing student loan payments, missing rent, etc. There's real risk you'll end up h…

If your startup was venture-backed, wouldn't the risk lie on the VCs instead of you?

Getting of the ground is key. Before you can raise VC money, you have to have traction. This increasingly includes seed financing as well. So either way, you have to take a huge risk to start a company where the outcome is uncertain.

When you run into a founder or work for one in the US, realize the absolute big risk they are taking. People in Sweden have a safety net to catch them. The result is people are more willing to take risks to start something and you also see more innovative startups that would otherwise be considered high risk in the US by founders.

Re: Why Does Sweden Have So Many Startups?

#12

Post by stevenwoo »

fc003153 wrote: post #10
nikanj wrote: post #4

Completely missed one of the most important points: It's easier to take risks, if those risks actualizing will not destroy your life. In the US, there's very little social safety net to catch you. If you get sick before the startup is big enough, it means personal bankruptcy - and no medical treatment. Missing revenue targets can mean missing student loan payments, missing rent, etc. There's real risk you'll end up h…

If your startup was venture-backed, wouldn't the risk lie on the VCs instead of you?

In the USA, paid health insurance is tied to one's choice of employment, unless one declines the employer's coverage. Whom are you expecting to pay for health insurance if one hypothetically quits working for Google and starts their own one man/woman company? Or is this not factor in as a risk in your opinion?

Re: Why Does Sweden Have So Many Startups?

#13

Post by Steko »

gragas wrote: post #2

The subtitle is misleading. >How a tiny country with high government spending bred a large number of vibrant young businesses The article then goes on to attribute almost all of Sweden's success to deregulation and anti-monopoly laws---i.e., less government intervention ∝ more startup success.

The subhead is hilarious considering the size of government in the Bay Area, New York, Boston and Tel Aviv, etc.

Re: Why Does Sweden Have So Many Startups?

#14

Post by NetStrikeForce »

fc003153 wrote: post #10
nikanj wrote: post #4

Completely missed one of the most important points: It's easier to take risks, if those risks actualizing will not destroy your life. In the US, there's very little social safety net to catch you. If you get sick before the startup is big enough, it means personal bankruptcy - and no medical treatment. Missing revenue targets can mean missing student loan payments, missing rent, etc. There's real risk you'll end up h…

If your startup was venture-backed, wouldn't the risk lie on the VCs instead of you?

How do you get VC investment before you have a prototype or a working product? Building those take time. Time which you invest in not working and earning a steady paycheck.

Savings are finite, sadly.

Re: Why Does Sweden Have So Many Startups?

#15

Post by adventured »

nikanj wrote: post #4

Completely missed one of the most important points: It's easier to take risks, if those risks actualizing will not destroy your life. In the US, there's very little social safety net to catch you. If you get sick before the startup is big enough, it means personal bankruptcy - and no medical treatment. Missing revenue targets can mean missing student loan payments, missing rent, etc. There's real risk you'll end up h…

> In Sweden, you might end up poor, but the poor are still taken care of. You get your medical treatment, the state pays your rent, and you are guaranteed enough income to buy groceries.

Way to propagate an ignorant myth. The US has a massive welfare state and social safety net. The average poor person in the US can typically draw $25,000 to $30,000 in benefits per year depending on the state they live in. Those benefits include free healthcare, housing, food, work training, etc. For some states, such as Hawaii, it's nearly $50,000 per year.

Just drawing on several of the most common welfare benefits programs in the US, gets you near $20,000 per year.

According to a fact check by the Washington Post in 2014, the median total individual welfare benefits package in the US was $28,800.

Let's put it another away. These welfare benefits numbers are so high, they exceed the median income in all but a few very wealthy nations.

Re: Why Does Sweden Have So Many Startups?

#16

Post by fish_fan »

adventured wrote: post #15
nikanj wrote: post #4

Completely missed one of the most important points: It's easier to take risks, if those risks actualizing will not destroy your life. In the US, there's very little social safety net to catch you. If you get sick before the startup is big enough, it means personal bankruptcy - and no medical treatment. Missing revenue targets can mean missing student loan payments, missing rent, etc. There's real risk you'll end up h…

> In Sweden, you might end up poor, but the poor are still taken care of. You get your medical treatment, the state pays your rent, and you are guaranteed enough income to buy groceries. Way to propagate an ignorant myth. The US has a massive welfare state and social safety net. The average poor person in the US can typically draw $25,000 to $30,000 in benefits per year depending on the state they live in. Those bene…

You’re only addressing half the comparison. Yes, the US has welfare, but it’s conditional and often insufficient.

Re: Why Does Sweden Have So Many Startups?

#17

Post by em3rgent0rdr »

stevenwoo wrote: post #12
fc003153 wrote: post #10

Earlier quoted context omitted.

If your startup was venture-backed, wouldn't the risk lie on the VCs instead of you?

In the USA, paid health insurance is tied to one's choice of employment, unless one declines the employer's coverage. Whom are you expecting to pay for health insurance if one hypothetically quits working for Google and starts their own one man/woman company? Or is this not factor in as a risk in your opinion?

The fact that health insurance is tied to employment in the us is just as much an argument for getting rid of the taxes and other incentives which led to employers being the dominant provider of health insurance.

Re: Why Does Sweden Have So Many Startups?

#19

Post by lovich »

fish_fan wrote: post #16
adventured wrote: post #15

Earlier quoted context omitted.

> In Sweden, you might end up poor, but the poor are still taken care of. You get your medical treatment, the state pays your rent, and you are guaranteed enough income to buy groceries. Way to propagate an ignorant myth. The US has a massive welfare state and social safety net. The average poor person in the US can typically draw $25,000 to $30,000 in benefits per year depending on the state they live in. Those bene…

You’re only addressing half the comparison. Yes, the US has welfare, but it’s conditional and often insufficient.

Social pressure as well. Most people are going to treat you as a piece of shit if they find out that you are gaming the system to live off of welfare so that you can create your own company instead of working if you can.

Re: Why Does Sweden Have So Many Startups?

#20

Post by adventured »

fish_fan wrote: post #16
adventured wrote: post #15

Earlier quoted context omitted.

> In Sweden, you might end up poor, but the poor are still taken care of. You get your medical treatment, the state pays your rent, and you are guaranteed enough income to buy groceries. Way to propagate an ignorant myth. The US has a massive welfare state and social safety net. The average poor person in the US can typically draw $25,000 to $30,000 in benefits per year depending on the state they live in. Those bene…

You’re only addressing half the comparison. Yes, the US has welfare, but it’s conditional and often insufficient.

Of course it's conditional, as it should be. If you're at or below the poverty line you can draw on the most welfare benefits, if you're earning a median income the benefits you can utilize are diminished.

Proclaiming it's often insufficient is a comically loaded premise. How often? In which states? Under which circumstances? I've got the perfect response for that: it's often sufficient.

According to the OECD's numbers, the US poor live better than almost any other poor people on the planet save for those in a select few countries (eg Canada, Norway, Sweden, Australia). [1][2]

[1] https://www.forbes.com/sites/timworstall/2013/06/01/astonish...

[2] https://mises.org/blog/poor-us-are-richer-middle-class-much-...

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