Entrepreneurship and Insolvency: Why Rules of Exit Matter to Those Entering the Market

Abstract

This article provides a conceptual overview of how insolvency law interacts with entrepreneurship. In doing so, it identifies the characteristics of insolvency regimes that are best suited for promoting innovation and enterprise creation. We specifically look at the Indian insolvency regime and contrast with the insolvency models in the UK and US.

Keywords: entrepreneurship, insolvency, Insolvency and Bankruptcy Code 2016, MSMEs, UK Insolvency Act 1986, Chapter 11 US Bankruptcy Code

JEL Classification: K21, K10, K2, F23