Lots of freeloaders and incompetent power trippers in the middle layers and above. Small orgs. and startups cannot afford this kind of workers.
In my current project (big co.) we have a technical PM, a non-technical PM, a non programmer dev lead, an scrum master and a lead business analyst, all involved in managing the work of a team of 2 and a half (a sr ba/qa guy, a part-time ssr dev and me). Waste work is probably in the 90%.
In my experience it's risk aversion. They're more worried about losing out from doing the wrong thing or breaking what they have, than a slow death from decaying market relevance. It's much easier to stay the course than to stick your neck out asking to change things.