>Can someone explain why so many companies these days struggle to make a profit?
Beside the obvious risk of running a company (competition, incompetence etc.) There is excessive regulation, taxes, paperwork etc. I estimate that cumulatively most of us pay around 3/4 of our earnings to regulation, taxes and other forms of bureaucracy.
It does end up killing a lot of initiatives. A lot of people who could have potentially ran even small businesses don't.
To your point: there is no point really for most ordinary mortals so they succumb to soul crushing jobs. For example many small farmers are in this situation.
As a ongoing example I've heard that businesses are leaving California and New York in droves to place with less regulation.
Beside the obvious risk of running a company (competition, incompetence etc.) There is excessive regulation, taxes, paperwork etc. I estimate that cumulatively most of us pay around 3/4 of our earnings to regulation, taxes and other forms of bureaucracy.