Tuesday, June 17, 2008

Entrepreneurship and the Barrier to Exit:

Here's a section of the business cycle that may not be well understood. The study "Entrepreneurship and the Barrier to Exit: How Does an Entrepreneur-Friendly Bankruptcy Law Affect Entrepreneurship Development at a Societal Level?" received the SBA's Office of Advocacy Best Paper Award at the 2008 Babson College Entrepreneurship Research Conference. "The authors examine the relationship between bankruptcy law and the value-creating activities associated with risk-taking behaviors by entrepreneurial firms. They argue that an entrepreneur-friendly bankruptcy law may paradoxically increase the number of corporate bankruptcies, which may be indicative of a vibrant entrepreneurial economy."

A copy of the report is located here and the research summary can be found here.

Should you need further information, please feel free to contact Jules Lichtenstein at (202) 205-6533 or advocacy@sba.gov.

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