Earlier quoted context omitted.
> you are a startup in France, with long-term employees, and suddenly you realize you screwed up, and you have to cut your expenses in half. You dismiss employees equivalent to half of your expenses on economic grounds, and after the appropriate notice period (1 month for employees with 6 months - 2 years tenure [1]) you now have half the expenses. If that's not fast enough, I doubt your startup would have survived f…
OK, no problem, I am convinced because Europe has tons of successful startups. That works great until the next time I am interviewed by French TV about why the EU doesn't have as many startups as Silicon Valley.
I'm french. I can't speak for sure about other EU countries, but I can speak about France.
The REAL and main reason why tech startups are less frequent here is cultural.
In France we have a HUGE problem with elitism & a widespread negative attitude toward anybody who tries to innovate/change/make things. It's a pervasive problem, I've been MANY times hit HARD by that problem. Initiative is strongly discouraged (even if most people will claim the opposite): no matter what you do, a LOT of people will immediately give you _negative_ critics of all kind, sometimes mind-bogglingly stupid: "it'll never work", "that's not a good idea", etc. The more clueless they are, the most aggresisve they are about it. It's really hard to be motivated in such an environment, and of course it also has a direct impact when you try to find funds or associates...
Also, many people, especially the managers & the elites only see the BIG companies as being worth anything, despite the fact that small to medium businesses make the majority of employment & create the most value.
Add to that the HUGE problem that managers and all the elite (politics, leaders, whatever), salespeople, and many others, have an extremely TOXIC attitude toward people who DO THINGS. For instance I was given shit many times because while being a team lead I was involved in the programming part. To them, a manager does NOT get his/her hands DIRTY. Which is stupid of course and explains a LOT of the problems we have here. And trust me, this goes very far, there is a real CONTEMPT toward people like me, who are the ones who build the products & services that bring all the money. I've been mocked to my face because of that by people (sales & managers) who have no clue about how to manage a project, a team, and even less a programming project... (And I've worked on HUGE telecom projects, not a couple of PHP pages). Same goes for everybody in my family, who are mostly scientists/engineers. This in turn creates a big dissatisfaction -or worse- in the people who are in the trenches, creating an awful "us versus them" mentality that kills productivity & often creates a very bad work atmosphere.
And don't get me started about the awful prejudices against programmers (and everybody involved in computer projects). It's REALLY bad! So bad that I regret choosing that field. Here also there is a huge contempt & all the ridiculous prejudices that you probably know about nerds, programmers, etc. (Of the hundreds of developers/SE I've met, I can count on the fingers of ONE hand the ones who somewhat fit the stereotypes, and those were people with severe mental issues, something not related to the job). Another BIG problem is the "programming is easy" B.S. This leads many managers to think that they can replace experienced people like me with cheap beginners, sometimes in foreign countries, with disastrous results (as I wrote above, I worked in BIG projects, with crushing responsibilities, not the stuff that beginners can handle by themselves even if they are good which was not the case because being cheap, they were not the best, not by a long shot).
The huge bureaucracy does not help either, but it's not the most important issue.
In case someone points out the few recent initiatives to encourage startups in France, let me repeat what I just wrote: the fundamental issue is ATTITUDE. Until we can fix that, everything else is basically useless.
