The article dances around interesting ideas but instead settles for the washed up thesis that people are abusing government handouts.

There is an interesting phenomenon we are seeing: entrepreneurship is suddenly more glorious, encouraged by governments but often with misguided incentive structures (i.e. rewarding those who are great at pitching or making shiny vanity products).

So a more interesting question is: how can a government encourage entrepreneurial activity without enticing wantrapreneurs to demand free cash?

One idea is reverse tax. The government could reward a startup that is making money even if it's a small amount, and that way, the government is amplifying the market's rewards and not creating a faux incentive structure.