It's very simple to start a business, and it's even simpler to hire people.

It is hard to fire employee, especially when the company is doing good, yes.

It is a bit slow and administratively annoying to start a business in some countries, yes, though in those you can usually start operating while starting AND there are workarounds which is why there isn't enough pressure to stop it (eg, the german "pre made company shell" market is how you actually do it instead of making your own).

Depending on the country, it's not even that difficult to fire in the EU... (e.g. Estonia and Poland)