Jimmy Wales, the guy who dreamt up Wikipedia, describes the differences between the US and EU economies. In his view Europe is hampered by loads of red tape.
He has a point. The USA is already coming out of the financial crisis, whereas Europe is still diving deeper into the chaos. There is no end in sight to the economic problems we’re in. Not only are politicians squabbling as if Europe has got loads of time to get out of the crisis, the administrative hurdles would be entrepreneurs have to take to set up a new business are so high, many people just give up. That’s not conducive to reviving the European economy….
See what Jimmy Wales has to say. (And no he’s not related to William Wales, the helicopter pilot)
We can speak from experience. When we tried years ago to get a merchant account (in order to take payments online) through a bank in the UK, and we were asked to come up with business plans, how much we were going to take on a monthly basis, etc. When you’re starting out you don’t have a clue, especially when you’re doing something that hasn’t been done before. (In 1995 a job site was a rather strange kind of business, and it still is according to the banks….)
So, stalemate. We didn’t want to waste time writing business plans that were destined for the bin, so we ended up creating an account with PayPal in less than five minutes. The profit they make on our transactions now benefits the US economy, not the EU.
Over the years we have tried to get a proper merchant account, but we still had to jump through hoops and be very subservient to the banks in the hope of securing one. When you realise that they put you through all this just to handle your own money and that you don’t want to have a credit line with them, you just think ‘What’s the point?’ We also wanted to move away from PayPal as their fraud detection service is pants. We spend more time detecting fraudulent payments than technologically is necessary.
So in the end we have decided to give up on the red tape and make the site pay for itself in a different way that does not involve the nightmare of a merchant account. When in future we might need one we will be forced to move outside the EU and set one up there. Great for the EU economy! Not……