Another week, another credit-crunched company ‘bought out’ or ‘re-branded’, when in fact they have failed and the owner is starting again.
Fine. Everyone’s got to earn a living. But policy makers responsible for good business practice need to get a grip on self-named ‘serial entrepreneurs’ who write off debts by liquidating a failing company, and start again the next day with a clean slate. This is often glamourised with the ‘phoenix’ euphemism.
To err is human; to shaft staff and suppliers, a disgrace.
It seems to me that this is a common problem in the creative industries where margins are tight, or in many cases non-existent.
If a business is failing, those responsible need to face up to it and deal with their debts. The chain reaction of ignorance and poor decisions must be adding its weight to the already burdensome unemployment statistics.
By allowing failed business owners a way out, how is the SME community supposed to truly learn from its mistakes or maintain a sense of credibility?
Limited liability does not mean limited responsibility.