Mitigating Financial Risk for Small Business Entrepreneurs

Ohio State Entrepreneurial Business Law Journal, Vol. 6, p. 469, 2011

U of Maryland Legal Studies Research Paper No. 2011-53

22 Pages Posted: 17 Jan 2012 Last revised: 18 Jan 2012

See all articles by Michelle M. Harner

Michelle M. Harner

University of Maryland Francis King Carey School of Law

Date Written: 2011

Abstract

Financial distress by definition threatens a company’s viability. Entrepreneurial and start-up entities are particularly vulnerable to this threat. Yet, much of the discussion following the recent recession focuses almost exclusively on financial institutions and "too-big-to-fail" entities. This essay re-examines lessons gleaned from the recession in the context of smaller, entrepreneurial entities. Specifically, it analyzes how small business entrepreneurs might invoke principles of enterprise risk management to mitigate the long-term impact of financial distress on their business models. It also considers related refinements to extant small business regulations, including the U.S. bankruptcy laws. The essay’s primary objective is to help policymakers, entrepreneurs and investors rethink financial distress and recognize opportunities for "successful failures".

Keywords: entrepreneur, small business, risk

Suggested Citation

Harner, Michelle M., Mitigating Financial Risk for Small Business Entrepreneurs (2011). Ohio State Entrepreneurial Business Law Journal, Vol. 6, p. 469, 2011; U of Maryland Legal Studies Research Paper No. 2011-53. Available at SSRN: https://ssrn.com/abstract=1968411

Michelle M. Harner (Contact Author)

University of Maryland Francis King Carey School of Law ( email )

500 West Baltimore Street
Baltimore, MD 21201-1786
United States
410-706-4238 (Phone)

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