Implementing an efficient insolvency framework for micro and small firms

• Main Author: Aurelio GURREA-MARTINEZ
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2021
• Subjects: Corporate insolvency; corporate workouts; small and medium enterprises; Business Organizations Law; Commercial Law
• Online Access: https://ink.library.smu.edu.sg/sol_research/3703; https://ink.library.smu.edu.sg/context/sol_research/article/5661/viewcontent/Efficient_Insolvency_Framework_2021_02_04_av.pdf
• Institution: Singapore Management University

Micro, small and medium-sized enterprises (MSMEs) represent about 90% of businesses and more than 50% of employment worldwide. Despite the economic relevance of MSMEs in most countries around the world, and even more in emerging markets, most insolvency jurisdictions do not address adequately the insolvency of MSMEs. In a recent article, entitled ‘Implementing an Insolvency Framework for Micro and Small Firms’ (International Insolvency Review, forthcoming), I seek to contribute to the existing literature on the insolvency treatment of MSMEs. After analysing the particular problems and features of MSMEs, as well as the insolvency reforms for MSMEs recently implemented in various countries around the world, including Australia, Colombia, Myanmar, Singapore and the United States, and the policy recommendations suggested by the World Bank and UNCITRAL, my paper proposes a new insolvency framework for MSMEs.