Saving Entrepreneurs, Saving Enterprises : Proposals on the Treatment of MSME Insolvency
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 t...
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| Language: | English |
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World Bank, Washington, DC
2018
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| Online Access: | http://documents.worldbank.org/curated/en/989581537265261393/Saving-Entrepreneurs-Saving-Enterprises-Proposals-on-the-Treatment-of-MSME-Insolvency http://hdl.handle.net/10986/30474 |
| 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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