"This assumes that to be successful startups need to be working 80h/weeks."
You are correct, and I don't assume it. But several people do.
"Doesn't this encourage entrepreneurship? It enables you to take the risk without fear of ending up homeless"
Yes, there are two sides to it.
Edit: I'll reply here why does this discourage entrepreneurship and my fault for not making this obvious
The sentiment of "failing at business" as a failure is much stronger. Yes, you won't end up homeless, but it doesn't mean the society (and the people close to you) "accepts" what happened.
Because you went for "computer stuff nonsense" instead of going for a traditional job.
The way this relates to the welfare structure is in their "origin" of having everything nice and square and predictable.
OP basically says people in Europe look at you weird for starting a business. Failing the business afterward is a social tragedy.
It's about social/peer pressure.
Having lived in many countries across Europe, I can attest. Some countries are worse than others of course (the worst being the ex-commie/socialist ones).
My experience was different. Failing the business is a social tragedy only if you took too much debt. If you simply find a job afterwards, then it is ok. At least among my friends.
You are correct, and I don't assume it. But several people do.
"Doesn't this encourage entrepreneurship? It enables you to take the risk without fear of ending up homeless"
Yes, there are two sides to it.
Edit: I'll reply here why does this discourage entrepreneurship and my fault for not making this obvious
The sentiment of "failing at business" as a failure is much stronger. Yes, you won't end up homeless, but it doesn't mean the society (and the people close to you) "accepts" what happened.
Because you went for "computer stuff nonsense" instead of going for a traditional job.
The way this relates to the welfare structure is in their "origin" of having everything nice and square and predictable.