It's somewhat more difficult for founding a limited liability company there, where the capital requirements are much higher than in most other countries (Eur 35K).
Yeah, that's why most founders don't actually register a GmbH. Many small businesses are sole proprietors, even businesses with a few employees.
Isn't it possible to fund a "mini" GmbH with only 10.000€ and build up to the 35.000€ over a span of a couple of years or something? I think I remember something like that being the case.
In my opinion the capital requirements are really not the biggest hurdle. If you start a GmbH, you have so many extra accounting requirements and everything gets more complicated. You also pay a lot more taxes in most cases. So it's something that many people try to avoid.