>I have no idea how small businesses make it in the EU.
The governments outlaw the sort of things that large businesses do to drive small businesses out of business. Wal-Mart just pulled out of Germany because the government wouldn't let them abuse their employees. There's a downside though - try buying groceries after 8PM in Germany.
but how is having an expensive workforce keeping small shops in business? I mean the really small shops like mom and pop shops can do it, but the 10-20 employee businesses must be running much tighter than they could here.
The governments outlaw the sort of things that large businesses do to drive small businesses out of business. Wal-Mart just pulled out of Germany because the government wouldn't let them abuse their employees. There's a downside though - try buying groceries after 8PM in Germany.