They are bureaucratic and risk averse. You could go on unemployment and cost them for a year or two, and they instead subsidize you starting a business for 6-1

They are bureaucratic and risk averse. You could go on unemployment and cost them for a year or two, and they instead subsidize you starting a business for 6-12 months to the same amount. Worst case, you fail, and they spent the same amount they would have nevertheless. Low-interest loans you won't get without taking on personal liability for your business loan. It's low-cost capital, but it's also low risk. Tax-delays/exemptions for small companies isn't a big bet, it's risking a fraction of a fraction of a percent. Venture investments by the government is rare (for good reasons, it'd be a huge opportunity for corruption).