I can’t really see how it’s any easier or harder to launch a start-up from Spain. The basic principles are the same – you innovate in a sector and strive/hope to take on enough paying customers or investors to make it. There is even an argument that in the gaming area it is actually easier – there is the Latin American market to conquer – and companies like Social Point and Akamon have done really well in that area. But apart from that, things are fairly much even. Plenty of start-ups launched from Spain by foreigners too eg Fon (Martin Varsavsky), TopRural (Francois Derbaix), Yuilop (Jochen Doppelhammer) or Tuenti the Spanish facebook (Zaryn Dentzel).
There’s been a lot made of the time needed to form a limited company – this has now been brought down to 24 hours allegedly by new legislation, but even if it takes a few weeks, so what? The only real thing that needed to be addressed was the need to pay full whack of around 270 a month for new autonomos – but again this has been changed by a new government measure that means new autonomos will pay just 50 euros a month http://cincodias.com/cincodias/2013/07/22/economia/1374490569_420614.html
It’s not even the case that there is a lack of funding deals taking place in the start-up sector – you only need to persuse the investments bring reported on the Loogic site… http://loogic.com/category/inversiones/
So no, I don’t see any argument that Spain is bad for business start-ups – unless you concentrate on the wrong moribund internal market.