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Saving Entrepreneurs, Saving Enterprises : Proposals on the Treatment of MSME Insolvency.

World Bank Open Knowledge Repository (formerly "World Bank E-Library Publications") Available online

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Format:
Book
Government document
Author/Creator:
World Bank Group.
Series:
Other Financial Sector Study.
World Bank e-Library.
Other Financial Sector Study
Language:
English
Subjects (All):
Access To Finance.
Bankruptcy And Resolution Of Financial Distress.
Finance And Financial Sector Development.
Financial Regulation And Supervision.
Insolvency.
Local Subjects:
Access To Finance.
Bankruptcy And Resolution Of Financial Distress.
Finance And Financial Sector Development.
Financial Regulation And Supervision.
Insolvency.
Other Title:
Saving Entrepreneurs, Saving Enterprises
Place of Publication:
Washington, D.C. : The World Bank, 2018.
System Details:
data file
Summary:
Micro and small enterprise (MSME) insolvency is particularly likely to impact not only the business, but also the personal and family life of the owner-operator(s) of such businesses, raising particular concerns that apply much less frequently in the context of corporate insolvency. This report refines and expands on the earlier deliberations of the Insolvency and Creditor or Debtor Regimes Task Force (ICR Task Force) regarding the optimal approaches for treating MSME insolvency. As a matter of terminology, it should be stressed that the term MSME in this report is intended to cover both individual natural persons and juridical business entities, unless specifically stated.This means that the size of an MSME differs from country to country and even industry to industry, making comparisons between jurisdictions and global standard-setting difficult. The scope of this report is designed to be nonprescriptive and dynamic across countries and contexts. Accordingly, this report aims to consider rescue and restructuring for all viable MSMEs, with the objective of preserving individual entrepreneurial initiative, including in the context of liquidation, and of preserving businesses that can continue to operate and add value in an economy. The final section of the report starts the process of examining the ICR Principles in light of the proposals made in this report.

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