Sunday, September 13, 2009

When Regulators don't embrace failure

One of the pillars of US economic growth has ironically been its willingness not only to accept but embrace failure ( The slate is even ultimately wiped clean following a bankruptcy with financiers/venture capitalists willing to look beyond past failures.

Paul Kedrosky does "an eye-opening comparison of the differential ease of starting and closing a business in various countries":

After all, if you're an entrepreneur in these countries, the incentives for creating any startup (let alone a riskier one) drop dramatically if the costs of failure are excessively high.

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