Startups work this way because they are operating in an economy dominated by financial fraud and enormous monopolistic incumbents. Without the need to impress investors who expect endless unrealistic projections of growth supported by unsustainable amounts of labor, or worse, to compete in a landscape where giant firms might just decide to compete with you or destroy you because you proved there was a market for something, a small business is hard work
This- the barriers to solo founding and funding a brand new business working with physical assets are insane in much of the US.
For the most part you’re required to deal with all the same laws that a multi billion dollar incumbent is, and often times even more (zoning, permitting that are hard law for small players and easily flexed by local government for dubious jobs claims by large players). Many areas charge fixed annual fees for incorporation that are notable for an individual but irrelevant at scale. Rigorous accounting and record keeping standards. High salaries even for uneducated manual labor work. Building any modest physical structure requires what amounts to most middle class individuals entire expected lifetime earnings and you largely aren’t able to legally do any of that work yourself.
There’s a good reason California startups exist in the way they do, and if you aren’t doing software or running an unlicensed pop up fruit stand or flower shop you often look elsewhere.
