You need to be competivite on the whole world. And to build a company into a world leader, you need to have lots of money.
Yelp, Amazon, Facebook, they needed about 100 Mio USD of investment to grab the market and get profitable.
Nowhere in the world do you get that much money for a venture except in SiliconValley. And nowhere in the world you get that many highly motivated people to work their ass of for getting a change to hit big.
And nowhere in the world do so many people fail.
But even when working in a failing company, it has the function that people know each other (how they work, what they are able to do) and hire the people they know for the next venture.
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