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Small and medium-sized enterprises (SMEs)

A second chance to entrepreneurs

2nd chance entrepreneurs in action

Quotes

"Anyone who has never made a mistake has never tried anything new" - Albert Einstein.

Why this issue?

Every year, several hundred thousand businesses in Europe close. This is part of the dynamics of a healthy economy and, in fact, only 50% of businesses survive 5 years after they were created. Of all business closures bankruptcy represent approximately 15% and of these only 4 to 6% are fraudulent bankruptcies.

Bankruptcy, then, is not that uncommon and it is certainly not a new phenomenon. Also nearly all bankruptcies are due to reasons other than mismanagement yet… the effects it has on the entrepreneur and on society at large are vast.

What is at stake?

The stigma and difficulties faced by a formerly bankrupt entrepreneur are such that many are deterred from re-starting a new venture. But the effect does not stop there. Many Europeans do not even consider creating a company out of fear of the consequences of failure.

The net effect is that thousands of companies are not born and tens of thousands of jobs are not created every year in Europe.

What can we do?

As a society, we haven't come up with the inventions and new thinking that has made us all so much richer over the centuries by steadfastly avoiding mistakes - but rather by learning from them. Many well-established companies only exist because their founders did not give up after failing at their first hurdle. Bankruptcy is a serious matter but we must ensure that genuinely talented entrepreneurs have every opportunity to give it another try to tap the full potential of business to create wealth and jobs.

Many well-established companies only exist because their founders did not give up after failing at their first hurdle. Business failure has to be taken seriously, but to tap the full potential of business to create wealth and jobs in Europe, we should ensure that genuinely talented entrepreneurs have every opportunity to give it another try.

If you are a Public Authority

Policy instruments and materials to promote a second chance

If you are an entrepreneur

Advice, contacts and tools to support you in difficult times

Bouncing back from failure is in our nature

Business getting out of hand? Act quickly!

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