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RESEARCH PRODUCT

Factors and Barriers of Implementing Early Warning, Support and Second Chance Support Systems for SMEs in the Baltic States

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COVID-19 creates insolvencies time bomb, even if economies are supported by the state. Following the liquidation or bankruptcy of a business, entrepreneurs in the EU mostly opt for a paid professional job rather than re-establishing their business [1]. Those entrepreneurs who re-establish their business after bankruptcy are experiencing faster growth than start-ups. The study points to significant current barriers and factors influencing the implementation of support, early warning and second chances in the Baltic States. There is a need to increase the competencies of both the businessmen and support providers on crisis management and the support already available in the broadest sense. By increasing support for the businesses in crisis in the Baltics, the wave of COVID-19 bankruptcies would be both reduced and used productively to create new, already stronger companies, thus providing a productive support to the Baltic business environment.