Question

Do you believe that the laws should be changed to make it easier for entrepreneurs to go into, and recover from, bankruptcy? What are the implications of your answer for the entrepreneur, creditors, and the national economy?

Answer 1

Yes. It has been witnessed in recent times how the financial world and the fluctuations in the economy can result in honest, law-abiding companies going into bankruptcy. Not only these companies employ thousands of employees, but they also contribute towards the economic and financial growth of the nation. Hence, they should be helped by law to recover their losses and get back on their feet.

Laws can be enacted to help genuine companies with loans, or assistance to recover which would help all the stakeholders of the company including the society and the general public.

The implication of my answer for entrepreneurs would be that they would be more confident in operating in the country and would be ready to face challenges and threats without the looming fear of going bankrupt. Similarly, the creditors can be confident in providing credit to the companies since they can trust the government and law system to help them if the company they give credit to goes bankrupt.

Lastly, it will result in the growth of the national economy and will also attract foreign investors resulting in higher FDIs.