Or perhaps they just got genetically unlucky. Say someone has a chronic condition and would never be able to afford insurance outside of a group plan. Does that mean the world should be deprived of their entrepreneurial efforts?

The article is really talking about "self employed" people. It would be erroneous to assume that self employed people all need to have a high risk tolerance. There are more self employed low paid and menial workers than there are schmoozy, Valley "entrepreneurs" and I wouldn't expect a self employed cleaner, nanny or au pair to be adopting a high risk profile.