when comparatively it takes so long to set up a new company here

I think too much attention is paid to the time it takes to set up a company. Firstly, AFAIK, it is now possible to set up a company in 24 hours, (the SLNE). However, if you have a business idea, taking one day or two weeks to set up a company is not going to make much of a difference. It’s not as if that were the only thing you have to worry about — you may also need capital, a premises, permits, logo and design, web site,  etc.  They all take a lot longer than 24 hours to sort out.
So, the fact that it may take a few weeks to set up a company is not an obstacle to entrepreneurship. After all, you can set up as a freelance worker (autónomo) or sole trader (empresario individual) on a same-day basis. That enables you to operate as a business immediately (though without the limited liability provided by a company).