This would allow people on benefits to have a go at creating new jobs for themselves, instead of playing musical chairs with everyone else trying to get more paid hours. The cost would be not much greater than paying the same people benefits, and would be further subsidised by not having to put WINZ staff time into managing their case.
Even in the worst case scenario where the business fails and all the workers ends up back on a benefit, they'd all gain skills and confidence from having a go.