We are in Norway and my wife ran her own small construction engineering business for a few years. You get no welfare, as it is funded from your previous payroll contributions, and only for up to 2 years. If you business is too small for you to have yourself on payroll, tough luck. Getting there takes a while, as tax burden on a business here is quite significant.

> Credit institutions are quite used to absorbing losses.

They are also quite good at taking the profits on their investments. If a bank bails you out, it wants to take its pound of flesh. You essentially arrived at status quo.