In the UK we borrowed money against our property (as house prices had inflated) in order to set up our business. We had no money of our own (£300 or so), just overdrafts to live on and were refused unemployment benefit. It was 2 months or so before we were going to be able to open our studio (building works, planning permissions, etc.) and neither of us was employed by the company into which the money had been vested (as director's loan).

Hard times!

90% of UK businesses fold in the first year, I can see why.

Basically the message was, sit and do nothing and we'll give you a house and pay you unemployment (until your payed in years of NIC have run out at least). Start a business on credit and we'll let you starve.