Indeed. It may be, as someone says, that this is not everyone's cup of tea. I certainly don't mean to suggest that every graduate should found a company (just a lot more than are doing it now). But at least you could encourage it, for instance by offering students a course or other assistance on starting up a company. If the private sector is unwilling to lend money, the government should consider giving funding (could give them a nice return on investment if they do it right).