I think the reason why welfare is irrelevant here is because the people going into entrepreneurship tend to be skilled enough to find a good-paying job even if their startup fails. Suppose that you're a good product manager or a good developer that's going into the startup world and you don't get lucky with your startup, you'd still be able to find a good job as soon as you're done... in fact, you might even get a higher-paying job because of this experience you've had.
Source: https://thegedi.org/global-entrepreneurship-and-development-...
I think the reason why welfare is irrelevant here is because the people going into entrepreneurship tend to be skilled enough to find a good-paying job even if their startup fails. Suppose that you're a good product manager or a good developer that's going into the startup world and you don't get lucky with your startup, you'd still be able to find a good job as soon as you're done... in fact, you might even get a higher-paying job because of this experience you've had.