The same study also reported a 7 to 17 percent reduction in the cost of debt financing for Brazilian firms. From the broader macro point of view, a clear insolvency regime encourages entrepreneurship, when this provides a safety net for entrepreneurs, especially those who commit personal assets to start a business and personally guarantee loans to the new venture.
A 2008 study that compared self-employment in 15 countries in Europe and North America between 1990 and 2005 found that more forgiving personal bankruptcy laws combined with ready access to limited liability protections, enhance entrepreneurial activity. Furthermore, when the laws also provide for a well-managed redeployment of assets to more productive firms, jobs are preserved.