Because if you do poorly on the small business front, then they can't grow into bigger businesses. How many EU tech companies do you know of compared to American ones?
Many, but I'm european so it probably doesn't count (;
If you make it harder for companies for protecting people it's still a win. I recently visited SF, "the center of innovation" for the startup world. I saw 2 people defecating on the street in 2 weeks, countless peeing and had to jump over homeless at some points to walk the street. If that's the cost for startup and innovation, please don't bring it to EU.
I'm European too and I really wish people from Europe didn't have an attitude like yours. Some parts of Europe are incredibly poor, but of course we have a much smaller homeless problem, because if you're truly without shelter then you simply die in winter.
I'm from Spain and there are homeless people in Spain, just a lot less than in the US. But it's not because they die in winter, it is because you don't become automatically poor if you lose your job, or if you need an operation, or if you study at university. It's safety nets that avoid people losing everything and becoming homeless.