There's a flip side to this argument in that more failing endeavors would be allowed to exist for longer, thus draining productive resources from more worthy endeavors.
I don't think so. It's not cheaper to run a company in Norway than the US, and cost of living is high, and the fact we could've shut the company down and get more money meant we only kept running it because we were hoping to make more money rather than out of fear of where we'd be if it failed.
The benefits if anything serves as an incentive to give up failing ventures sooner.
In fact, I'd almost certainly have gotten more a month in welfare support if I'd been unable to find a new job if we'd closed my first company down than what we paid ourselves.