Entrepreneurs Starting Up With Fewer Employees

There is an interesting study link (http://www.rand.org/pubs/working_papers/WR637-1.html) towards the end of this article (which was pretty good by the way). The study suggests that employer-based health care inhibits entrepreneurship. The study supports this thesis by showing that there is a spike in new business creation (in the US) for people around age 65 (presumably because they have access to medicare).

I've always found this interesting. Their are so many successful startups you don't hear about that outsource most of their development. Does a power-monster startup really need hundreds of silicon valley engineers? Obviously talent brings you further, but what about for the tedious development tasks and leaving the problem solving to your founders?