The benefits of bankruptcy

Robert Young at GigaOm: Bankruptcy: The Opportunity to Fail

A former mentor, and a very smart man, once told me that the greatest invention in this democracy and capitalist system we live in and know as the United States is, of all things, bankruptcy. Yep, bankruptcy… the opportunity to fail.


Simply put, we live in a country that encourages dreamers to take risks, and the laws protect those “entrepreneurs” from the potentially excessive consequences of failure. Bankruptcy laws enable risk-takers to protect themselves and start over. There is no other nation on this planet that by its very by-laws fosters such an economic environment. This spirit, the acceptance of failure, while counter-intuitive, is crucial to this country’s enormous success within the world economy.

Sure enough, a couple of folks from Germany weigh in (both are non-German):

Anne Koark says:

I am British and have been living in Germany for 21 years. In 2003 I went bankrupt with my company. Here failure is completely stigmatized. So much so that many entrepreneurs affected by failure are suicidal. …

Anon says:

… I’m also an ex-pat American living in Berlin, Germany. What this country largely lacks is the spark of originality and creativity coming from America’s entrepreneurs. As an American, you take all that for granted until you move away. Americans really have a knack for coming up with new ideas, and should be proud of this.

My fellow Germans: Unless we make it easy to fail, we won’t get anywhere.

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