I think you may have overlooked the power of optimistic biases. A fair number of young founders do believe they stand a good chance of becoming very much upper class and base their financial decisions on this. Failing that, some people are willing to play lottery-ticket odds even with full appreciation of the risks.
That said, I think the answer hold even if you restrict the question to small self-sustaining lifestyle-businesses-size. You correctly state that there is no way of knowing how big a company will get at founding time. However, if there's an upper limit, then this may significantly affect risk evaluation. People will respond to the incentives they see, and you can't kill the incentives without affecting how people behave.