• 0 Posts
  • 198 Comments
Joined 4 months ago
cake
Cake day: June 10th, 2026

help-circle









  • Arguably the main problem is national taxes and social contributions. It’s extremely expensive to operate and disproportionately affects small business. Getting started isn’t really the problem, staying afloat is. I suspect lowering the entry barriers will largely result in more insolvencies.

    I can only speak for Germany from experience but it really feels like everything you get, you don’t get. It’s just working for the tax department with extra steps and terrible pay.

    A small shop will turnover about 30k per month, 10k will go on taxes and non-optional non-taxes like GEMA, GEZ, IHK, BGN, etc. 3 full time staff will absorb 10k in minimum wages and social contributions. The remaining 10k have to cover 2k rent, 1k insurances, stock purchases, packaging purchases, advertising, legal and administrative services, energy costs, some liquidity savings (machines need service, sometimes replacing). There’s nothing left for the owner-operator to live off and they also have rents, social security, energy and taxes to pay. It’s not really viable to do a small business unless it’s something with huge value addition to beat the curve.

    The administrative start up cost isn’t the hurdle, it’s macro economics. The money is sucked out of small enterprises because the big corporations aren’t taxable, they have the resources and political backing to avoid being taxed the same way.

    Its better to work a bullshit job.