Reform bankruptcy laws to empower entrepreneurs
Europe must modernize its punitive bankruptcy laws, which discourage risk-taking. By prioritizing restructuring over liquidation and protecting entrepreneurs’ personal assets, it can foster a culture of innovation and give failed startups and their founders a second chance to thrive.
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Comments3
Gold Bagel
Dec 15, 2024
People don’t realize this but a founder in the EU is personally liable for the business. This prevents people from taking risks they could easily take in the USA (LLC). It’s one of the more sublte ways business in the EU is impossible.
People still take the risks and many succeed, but many also fail and are ruined, and 10x that number never tried for fear of bankruptcy.
Brown Oak
Dec 15, 2024
Unless some major laws were broken, entrepreneurial personal assets should be exempt from bankruptcy almost by definition. Otherwise misses the point of structuring a company as a legal entity