[zeidrich]

Two things:

1 - Regulatory capture.

2 - Startups might be efficient because they're lean on things that might be important to government. Like a small IT firm handling a presidential candidate's e-mail server.

#2 feeds #1 because lobbyists suggest important rules and regulations that can be justified by government which increase the barrier of entry to startups. Oh, you don't have certification that you do this? Oh you haven't submitted for these checks? Oh you haven't been reporting on this? If you haven't done all of these things, then you aren't eligible to win this contract.

Individually these points can be logically argued and make sense on a case by case basis. It's just that the enterprises that are in bed with the government already put themselves in a position where they are compliant with the new regulations that they're going to make, and then lobby to make those regulations to force competition to scramble for compliance at the last minute.