The new insolvency trading provisions proposed as part of the governments innovation package this week are a win for investors, but also a win for small to medium enterprises.
For the government, there is no question the reforms will have the desired effect of encouraging a cultural shift towards sensible risk-taking and a have a go mentality when it comes to investing in start-ups, but also for investment in SMEs. In particular, personal insolvency laws limiting the punitive bankruptcy period to one year as opposed to three will remove a significant barrier to investment in both start-ups and SMEs.
SMEs currently suffer the most under the current insolvent trading provisions, so it stands to reason that they have the most to gain fr…
Read the full article at: http://www.businessspectator.com.au/article/2015/12/10/small-business-sme/insolvency-reforms-are-step-right-direction