Sure but the laws are probably relevant for the startups you _haven’t_ been a part of. The ones that never got started.
It’s funny you mention a lack of entrepreneurial spirit but then dismiss something that’s clearly a factor (not saying it’s the main factor but obviously it has some effect).
I have some side projects that I don’t really care about making money from but some people do use and it’s easier for me to just block all European users than worry about complying with all the random laws and regulations.