Swiftly filing for business rescue is vital for avoiding actual failure
Admitting your company needs help is a successful way to mitigate reality of liquidation
Many years ago, while working for a local bank, I was tasked with researching an optimal funding model for black economic empowerment (BEE) firms that were deemed too small to raise collateral-based funding. One of the things I discovered was the forgiving nature of the US culture towards business failures, or rather entrepreneurship failures. While this was a side issue to my research, it served as a shock to my system given the culture I was accustomed to in SA. Fast forward to today and my involvement in business rescue as a researcher and/or practitioner. We are still driven by a culture intolerant to business failure or, of even greater concern, entrepreneurial failure. This is a point of frustration for many business rescue practitioners and potential distress funders who see it as a limitation to the viability of business rescue as a restructuring tool. The number of company liquidations continues to grow, despite the existence of business rescue legislation. Business rescue ...
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