New bankruptcy laws and entrepreneurship
On October 17, the Bankruptcy Abuse Prevention and Consumer Protection Act will make the use of bankruptcy as a way to erase debts and create a fresh start much more difficult. Although clearly some people end up bankrupt from poor money management, poor discipline or even bad luck, I do have some concerns about the long-term effect of the new bankruptcy law on entrepreneurship. If you compare the United States (with a rather high rate of business founding to the population) with other countries, such as Japan or Germany with far lower rates, differences in bankruptcy laws stand out very starkly.
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- Posted Admin on July 09, 2005
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Where Japan’s new growth could come from
I've just two days ago returned from a visit to Japan, where I met with people from an incredible diversity of companies while giving talks and directing the Columbia Business School Program "Creating Strategy". Although it's standard commentary now to bemoan lack of creativity in Japanese companies, I had a different take on the issue. It struck me forcibly that the very habits that make it hard for Japanese companies to sustain a great deal of diversity in thinking and behavior might prove to be a godsend in the area of services. Think about it: to create a massively profitable, service based business, a firm either has to generate substantial margins from a few large clients (as IBM tries to do), or it has to figure out how to capture scale in services.
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- Posted Admin on July 06, 2005
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