Bankruptcy system model and efficiency versus the entrepreneurship and innovation in selected European countries

The aim of the article is to fill the cognitive gap related to the impact of the bankruptcy system model and its efficiency on the development of entrepreneurship and innovation in selected European countries and Turkey. This goal was achieved by examining the relationships between debtor-friendliness of the bankruptcy law model and its efficiency on one side and entrepreneurship and innovation on the other. The cross-sectional ANOVA test and OLS regression method were chosen as the research method. In order to verify the research hypothesis, the following variables were standardized: ease of second chance, severity of bankruptcy procedures index and resolving insolvency index. In the next step, on the basis of their standardized values, factorization in pairs (debtor-friendliness of bankruptcy law versus its efficiency and debtor-friendliness of bankruptcy law versus risk tolerance) was performed according to the mean. Such standardization and classification made it possible to analyse the variance of the "risk acceptance" variable in relation to the factor of the (low and high) classes of the above-mentioned bound variables. Finally, two studies were conducted using the classic analysis of variance. The analysis of the research results showed that the debtor-friendliness of the bankruptcy law measured by the ease of second chance index fails to increase the entrepreneurs' tolerance of risk. However, the efficiency of the bankruptcy system measured with the resolving insolvency index does increase entrepreneurs' risk tolerance risk in the countries surveyed. Next, it was checked whether the entrepreneurs' higher risk tolerance is accompanied by the development of entrepreneurship and innovativeness. Based on regression models, the above relations were confirmed.