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It is true. However, without the paper, the kid can't go anywhere. And it will be a matter of time, he will end up as a hoodlum. Being ostracised by society for not being able to conform to the education system is not easy for any child to handle. Without supportive parents, the child could easily succumb to despondency and retaliate.
that's a sweeping stereotype answer. there are many ex-pai kias who made it good and are running successful businesses and raising their families.
the common theme for the pai kias who turned good is support from family or friends. to have a mother clean your wounds after a fight, or a da ge to get you out of the gang, that is more important than any handouts from the government
it is society's fault for being so myopic to highlight only the success stories of the academically bright ones. put it this way, i doubt that many SMEs are run by 9 or 10 A1 types.