Bankruptcy - a cause for shame or a valuable lesson?

In the United States, approximately 2 million small and medium-sized enterprises go bankrupt every year, in the European Union - several hundred thousand. In Poland, on the other hand, the number of bankruptcies is steadily falling. Last year, courts declared 750 entities bankrupt - 10 per cent less than in 2014.

However, the ratio of companies going bankrupt to those that have been able to recover from bankruptcy is very unfavourable for our country. What is the reason for this?
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- It is a matter of changing attitudes, says Maciej Pietrzak, President of PMR Restructuring S.A. - In Poland, an entrepreneur with a history of failed projects is perceived as a failure and untrustworthy. In the United States, the situation is quite different. Every failed venture is seen as a valuable lesson. An entrepreneur who has done his or her homework will be able to define the problem earlier, anticipate possible crises and deal with them. Hence the high level of confidence," he explains.

According to the European Commission's report on business bankruptcy in EU countries, it is the stigma and aura of failure that bankruptcy leaves in European culture that makes many people completely discouraged from starting up again. However, different attitudes towards bankruptcy are closely related not only to mentality, but also to legislation.

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18 March 2016:
" Bankruptcy - a cause for shame or a valuable lesson?