Entrepreneurship and failure: two sides of the same coin?

Abstract

This paper attempts to shed light on the nexus of relationships existing between failure, bankruptcy, institutional context, and local characteristics on one hand and entrepreneurship, firm survival, and performance on the other. The aim is to provide a larger vantage point from which to read the research included in this issue with the overall ambition to contribute to a better understanding of our entrepreneurial societies and the role of failure within markets. In this respect, the focus here is mainly on the institutions governing the bankruptcy procedures which do much more than simply regulating the exit of insolvent firms and protecting creditors' investments, minimizing the social cost of failures. They set up the revolving doors through which creditors can reinvest the recovered capital in new entrepreneurial projects and failed entrepreneurs can bring back to the market their skills and their entrepreneurial spirit for fostering new and hopefully successful ventures. Therefore, by managing bankruptcy, the institutions are not only protecting the economy. Instead, they have become a tool of economic policy, devoted to the delicate issue of regulating a physiological event to the market while avoiding too much waste of resources. In a more positive perspective, managing insolvency and failure is also a mean to strengthen competitiveness and growth, making it possible to stimulate the market in reshuffling skills and resources into new activities. A deeper understanding can in turn contribute to the implementation of better and more efficient policies by integrating bankruptcy as a natural component of firm and market life.

Research on science and technological entrepreneurship education: What needs to happen next?

“…However experiential activities, interdisciplinary activities and simulations have been found to be more effective for learning than a traditional lecture setting for many skills; perhaps vastly different approaches such as apprenticeships (followed in many skilled trades) is more suitable. Anecdotes given about how investors look for the presence of failed entrepreneurs, as part of a start-up team (Ekanem and Wyer 2007;Hsu et al 2017;Eklund et al 2018), suggest that the traditional models of accreditation and training may be inappropriate. Other possible venues for learning include programs and courses that involve: incubators (Lamine et al 2018), lean methodology (Blank 2013 The fundamental questions-definition, location, timing, and mode-in effect ask if the dominant approach to technological entrepreneurship education is misdirected.…”

Financial Characteristics of Pre-Moratorium Companies

“…Dostatečně brzká komunikace zúčastněných stran by mohla zvýšit plynoucí efekty a urychlit řízení, protože jak se ukazuje, tak české firmy často vstupují do insolvenčního řízení naprosto majetkově vyprázdněné (Kislingerová et al, 2013(Kislingerová et al, nebo Čámská, 2013. Pokud ale firmy vstupují do insolvenčního řízení již majetkově vyprázdněné, tak institut moratoria sotva může naplňovat svůj účel, kterým je nastartování fungování firmy a zachování jejího provozu, což má za cíl minimalizovat sociální náklady (Eklund et al, 2018) a dopady na celý ekonomický systém země (Lee et al, 2011). Již Klečka et al (2010) prokázali, že bankroty českých sklářských podniků mohly být očekávány dlouho dopředu, a to na základě syntetických ukazatelů, které budou dále použity i v této analýze.…”

Financial Health of Enterprises Introducing Safeguard Procedure Based on Bankruptcy Models

“…There is the social burden on previous employees and their families. Larger enterprise means larger impacts on the society and therefore the government tries to minimize the social cost of defaults (Eklund, Levratto, & Ramello, 2018) and a negative influence on the whole economic system (Lee, Yamakawa, Peng, & Barney, 2011). There are even current efforts of the European Union which tries to avoid fully insolvency regime in the case of the corporate reorganization.…”