EuroFroth - State of startups in Europe | Hacker News Reader

EuroFroth - State of startups in Europe

forbes.com

5 pointsnickb6 comments

This is quite telling:

"I think Silicon Valley will never happen in Europe. People here care too much about their family and friends. People give up their family and friends to move to Silicon Valley, and it would mean people here would have to move to Paris or Stockholm or London. Instead of one Silicon Valley, Europe will have pockets of excellence in different cities."

Europe's heavily regulated labour market means that it's significantly more expensive and risky to hire people in your startup. A "work 18 hours a day" Microsoft/Apple would be almost impossible in those countries.

It's not easy to start companies in France and Germany, compared to the US, UK, Ireland and other English speaking countries: http://www.heritage.org/index/countries.cfm

Compare France:

The labor market operates under regulated employment rules that could be improved to enhance employment and productivity growth. The non-salary cost of employing a worker is very high, and dismissing a redundant employee can be costly. There are rigid restrictions on increasing or expanding the number of working hours. Due partly to complicated and pervasive labor regulations, the unemployment rate is high. A recent effort to reform the regulated labor market met fierce resistance.

.. and Germany:

The labor market operates under restrictive employment regulations that seriously hinder employment and productivity growth. The non-salary cost of employing a worker is high, and dismissing a redundant employee is costly. Reforms implemented in recent years focus on reducing welfare benefits for the unemployed. However, Germany's wages and fringe benefits remain among the world's highest, and the ability of businesses to fire workers is subject to rigid conditions, all of which serves as a disincentive to invest and create jobs.

to the US:

The labor market operates under highly flexible employment regulations that enhance overall productivity growth. The non-salary cost of employing a worker is low, and dismissing a redundant employee is costless.

You have to be careful when saying "Europe".

Yes, some countries do have bizarre rules. When I worked in France, we couldn't go into the office at the weekend because the whole site was shut down with only security present. We used to hire a hotel conference room instead and work there.

In England it's completely different. Other EU countries may be the same. Typically, whenever some backing EU treaty gets created, sane countries negotiate an "opt out" and ignore it.

Notice how I excluded England and Ireland above.

I thought you meant that only applied to what came after the exclusion, and not to the first paragraph.

Erm, EU residents happily move between countries for work; it's one of the things they're allowed to do without visas. When I was in Paris there were many Irish au pairs there for example. I don't know what au pair is in Irish. ;-) With good rail transport between many of the major cities visiting family back home isn't too onerous.

Reply on news.ycombinator.com