Many business owners do indeed fail at their first attempts at business.
But these unsuccessful experiments are the fertile ground on which America's successful businesses and industries are built. The flexibility in the system that allows for these changes and the small business entrepreneurs who take advantage of it are, in large part, the mechanisms that sustain economic growth. With the Bankruptcy Reform Act of 1994, small business owners were given the option of reorganizing their business in an expedited manner under Chapter 11. Small businesses would have to comply with much stricter timelines for filings and submissions of plans and mandatory filing of monthly financial reports and disclosure forms. In addition, the bill would make it more difficult to receive filing extensions and would establish entirely new and untested duties for the U.S. trustees.