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"It's probably hindered a bunch of people from starting companies in the region"

I very much doubt it. If you were really wanting to start a company, you're not thinking, "I'd do this totally awesome thing! If only it wasn't so hard to fire people!"

You start a company with a few small people in germany somewhere.

You quickly realize that because of investment money and running a company, that running it in germany isn't that great and you move the company to the USA.

It happens more than you think.

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