Actually it's a mixed capitalist economy with socialist features. The government regulations actually makes it difficult for immigrants to start businesses and for their business to survive in contrast to say in America where there is less regulations and the government encourages immigrants to start businesses by giving them grants and other financial assistance.
There is also a difference in Europe in so far as you need education and language proficiency to even enter work. For example Sweden has a highly skilled labour market, where only 5% of the jobs require lower levels of skills, which presents a barrier and a challenge .It's not simply about encouraging work.
