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 (Entrepreneurship.org). 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.