Even though bankruptcy is not uncommon, the stigma and practical difficulties faced by formerly bankrupt entrepreneurs often deters them from starting new ventures. Moreover, many Europeans fear the consequences of failure enough to deter them from setting up their own business in the first place. The Commission develops tools to help entrepreneurs assess their performance and identify problems to be solved.
The Commission has developed an early warning tool that helps small and medium-sized enterprises (SMEs) make a preliminary assessment of their performance and provides tips for improvement. While this tool cannot solve problems, it can help businesses identify potential sources of difficulty in time to seek further information, advice, or remedies.