i'd like to challenge this idea that not everyone can start a company. May be not in the current form that a company takes - i.e., having a lot of "admin" stuff to take care off (such as taxes, registration, various laws etc).

I think specialization is the key here - may be there is room for a specialized company whose sole job is to take the "business admin" part out, and all the founder has to do is actually do the work. All of the other parts that a ancillary is done by this specialized company. What this could mean is that instead of working for someone, everyone works for themselves, and all the organizing happens via some automated fashion (akin to how the stock market operates).

Also what this means is that if the efficiency of the system is can be made high, then mediocrity will quickly die out (due to natural selection).

Considering that nobody in their right mind would give that 18 year old a business loan, where are they getting this capital to start a business? (Remember, due to the recession, the traditional entry level job is taken by people with significantly more experience, making the skill and income acquisition portion of the program harder.)

When I hear this advice, I usually hear it from people born on second base and think they hit a double.