Social pressure as well. Most people are going to treat you as a piece of shit if they find out that you are gaming the system to live off of welfare so that you can create your own company instead of working if you can.
Of course it's conditional, as it should be. If you're at or below the poverty line you can draw on the most welfare benefits, if you're earning a median income the benefits you can utilize are diminished.
Proclaiming it's often insufficient is a comically loaded premise. How often? In which states? Under which circumstances? I've got the perfect response for that: it's often sufficient.
According to the OECD's numbers, the US poor live better than almost any other poor people on the planet save for those in a select few countries (eg Canada, Norway, Sweden, Australia). [1][2]