I’m curious how European economies justify the high cost of starting a business?

Maybe I don’t fully appreciate the situation. I have known some German freelancers be stuck, unable to afford to start a business. However without a business the freelancers clients will be seen as participating in disguised employment. Same goes for issues the OP cites like personal liability, etc. In the US, business licenses are relatively easily obtained to protect individuals. It would seem to benefit society to encourage new ventures. Though this is perhaps my American biases. I’m sure I’m misunderstanding something.