If a business goes bust, those losses can be written of at tax time. A worker losing their job faces homelessness, the inability to see a doctor or pay for their medications, and hunger.
To avail the benefit of writing off taxes, the ex-business owner requires future income. Who's to say that he/she won't be unemployed for a long while after devastating their life savings?
Then they can get a job. Why are they taking on risks that they can't bear with their investments?
What does write off mean to you? If you lose money the government is not giving you money for that loss.
The vast majority of businesses are small businesses, if they go broke the owner is just as broke as the employees.