I'm a sole trader with a "product" strat-up in France. I spend about 10% of my time on paperwork. I've have a police inspection yesterday "because I'm flatsharing". We have mandatory taxes and charges of about 70% [1]. There's no way we can become big.
[1] Income tax: 20%, Mandatory unemployment/state/health benefits 46%, VAT 20%, land tax $300 for using my own flat for professional purpose, corporate tax, mandatory non-computerized accountant $2800, bank $300, and unclear legislation compared to, say, UK, requiring hours and hours of reading and tax dodging.