Could you set an example or parameter for what constitutes as low risk, medium-based business on the web?

Aside from local clones, I'm unable to think of anything that fits that bill. Especially if we're talking medium-return businesses internationally the likes which would be considered high-return in this country.

There's things like setting up your own online shops but that kind of setting is not conducive to forming a hub. Then there's the opposite spectrum of a cheap hub, places that as you describe makes it easy for any type of small businesses to form but it's certainly not the type of setting that could develop a culture of start-up support or hacker heartland.