As they point out in the paper, there are some cases where risk is intentionally removed, such as through bankruptcy for businesses to protect entrepreneurs. I

As they point out in the paper, there are some cases where risk is intentionally removed, such as through bankruptcy for businesses to protect entrepreneurs. I think that can have positive effects. Perhaps the point is that the risk is not removed in those cases, but reduced. Entrepreneurs clearly do have skin in the game, and bad decisions will affect them. At the same time, having a "safety net" that ensures bad decisions will not completely destroy an entrepreneur's life is clearly beneficial because it allows more people to try their hand at it.