The case for special insolvency regimes for small businesses – World Bank Group Report

Micro, small, and medium enterprises (MSMEs) drive employment, economic growth, and entrepreneurship across the globe. In many countries, however, bankruptcy laws are designed with the complexity and sophistication of large companies in mind, not to address issues relevant to micro and small businesses. Complex insolvency systems deter
MSMEs from resorting to formal procedures to tackle financial distress.

A recent World Bank Group Report looks at challenges of insolvent MSMEs, how legislation in different jurisdictions responds to them, and whether current international standards adequately address the needs of small businesses restructuring and exit. The report can be consulted here.

Author: Arie Van Hoe

Arie Van Hoe, Head of Legal VBO-FEB, voluntary scientific collaborator (University of Antwerp)

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