1 - Company bureaucracy is one of the most lightweight in Europe (make that the world) http://www.doingbusiness.org/rankings
2 - European time zone. Not bad for doing business in the US or China/Japan
3 - It is part of EU and the potential consumer market is the whole of it. Localisation may be an issue though, still, the UK is a huge market as well.
The biggest thing people lack is ambition.
I have been running a small business here since 2006 or so. Do not get me started, yes getting a business setup is easy but the fun begins when you realize you are in for a lot of "fun" with taxes and Revenue and other bureaucracy and red tape.
The tax system actively penalizes you for starting a business by for example reducing your tax credits, removing welfare support for when things fail, and whats worse is how you get treated by state beuracrats with cushy public service jobs they view all private businesses with disdain and treat you like shit. For example Revenue ALWAYS treat every case as if you are guilty of whatever you are accused and then you have to spend time and money to prove your innocence, instead of you know running a business.
I am not negative after all this time running a business here, I am simply bitter and disillusioned. Anyone wanting to start a business here does not realize how much of their time and money will be wasted for no good reason.