The New Rules for Going Broke
Of frightening note, the article points out that in 2004 there were 581,000 new businesses founded and 576,000 closed. The safety net has now diminished.
The Small Business Association states that small companies provide "roughly 3/4 of the net new jobs added to the economy and employ 1/2 of the private workforce".
The bottom line as illustrated by Professor White, "this would make the U.S. more like Germany, where bankrupty law has never provided a fresh start, risk taking is frowned upon, there are many fewer entrepreneurs, unemployment is higher and economic growth is slower."
Some excellent reading in this file:
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