What is a good environment for start-up businesses?

Countries and governments love innovation and invention, since innovation and invention can make the economies grow faster and generate more incomes and improve productivity and efficiency. Countries and governments love seeing more and more startups, because startups do not only introduce new business ideas, they also generate new innovation and invention and create more jobs for the economies. Many governments have introduced various policies for start-up businesses. What is the best that a government can do to create a friendly environment for startups?

Governments love start-up businesses, because they tend to be more energetic. Governments want to protect start-up businesses from hostile takeovers by the large companies, but do not want to protect startups too much, since governments want to keep the market competitive and the startups energetic and innovative. Governments want to let banks more willing to lend money to start-up businesses, but they are also worried pushing too hard will make banks have a large amount of bad debts on their balance sheets, which can potentially cause a financial instability for the entire economy. It seems that governments always want to protect start-up businesses to encourage their innovation and competitiveness; however, at the same time, governments also worry protecting start-up businesses too much that make start-up businesses lose their competitiveness and energy as well as innovation and invention.

Governments also try to find a balance in the attitudes towards start-up businesses. However, I think that instead of thinking about what can be done for start-up businesses, it is better to think how to reduce the market power from the giant companies which are real and direct threat to the growth of these start-up businesses.