A Strong Welfare State Produces More Entrepreneurs

The mechanism in each case is the same: publicly funded insurance lowers the risk of starting a business, since entrepreneurs needn’t fear financial ruin. (This same logic explains why more forgiving bankruptcy laws are associated with more entrepreneurship.)

Completely sensible argument that leaves me wondering why GEDI statistics seem to show little to no correlation between welfare state expenditures and entrepreneurship. But WMF stats show a correlation between time and cost to start a business and entrepreneurship.