In some countries (for example in Russia and Israel) a business can be registered without paying much to build a “full featured” company but by an individual person. But to get a credit without registering a full featured LLC (limited liability company) is a great risk, because an individual businessman may lose all his personal money as a mean of repayment of a credit. So one needs first find a good job to earn enough money to register an LLC and only then get a credit. To earn money to get a credit is a silly of silliest.
Many people would not agree for 80% chance of getting $100 billion in expense of 20% chance of becoming homeless. (Consider how much it is bad for the macroeconomy.)
Moreover this morally corrupts the society, as only the most greedy people (who agree for big money even for the risk to become homeless) can build a business. This makes the society controlled by greedy people.
Or consider for example a mathematician whose work is worth more than $100 billion. Consider that having $100 billion would increase efficiency of his work 20%. Simple risk management calculations (20% · 80% – 100% · 20% < 0) show that it would not worth for him to risk 20% of becoming homeless and not able to do research anymore in order to have 80% of $100 billion success.
In some countries (Russia for example), food and the only house can’t be withdrawn as means of repayment of credit, but would you like to be left for example without a phone? And even if food cannot be taken as a mean of repayment of a credit, the bankrupt person may indeed starve to death because he may first lose his money reserves and afterward lose his job too.
Paid registration of companies is an evil. Fees should be set to zero.