At the risk of being simplistic, I have long believed that in the world of business there are two types of people -- those who use and enjoy risk and those who are risk averse. Often those who are risk averse become employees, even academics. Those who enjoy risk become business owners, usually preferring the process of start up. This is why, if you are a risk taker, you don't really enjoy being an employee.
The government employees who try to encourage start ups belong to the second category and cannot for the life of them understand the risk takers. So, they are more likely to view success as a lack of failure.
Most bankers (Who recently forced a rewrite of the bankruptcy code to benefit their business.) have little or no use for risk. They are of the "employee" mentality. (not all, but it is common) As the article points out, this reduces the number of start ups.