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I'm not sure about assistance to the unemployed to start their own businesses. So many fail. I'd have thought anyone who had the talent and initiative to start something themselves would already be doing it.
Yes, some will fail, maybe most, but they will be out there trying and in doing so may run into prospective employers willing to give a go-getter a job.
Also, some capital is needed to start a business. It's hard to find that when Newstart is widely considered inadequate even for a living allowance. Applicants would have to have a business plan, you wouldn't give just anyone a grant and expect them to think something up.