rkeyes

I think you're right, that a rising number of bankruptcies suggests more risks are being taken, and more businesses started, many of which fail. That's why some economists see a rise in bankruptcies as a healthy sign. The United States Congress recently tightened bankruptcy laws and many people objected that this would only discourage entrepreneurship. As you point out, reducing the stigma in going bankrupt is a good way to encourge more people to start their own businesses. The question of which mistakes are productive & to be encouraged and which ones are not and to be discouraged is complex (& addressed in our book). The key is to discourage mistakes in production, especially where safety is involved (tire manufacture, for example, as with Firestone) but not discourage mistakes made while trying new approaches that could lead to dynamic innovation. Creating what we call a "failure-tolerant" attitude toward this type of mistake-making encourages, as you point out, the desirable goal of getting more employees involved in making improvements. I've posted this answer in Ralph's name, his Dutch is a bit rusty ;) (zrski)