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Study Finds Small Business Bankruptcy Filings to be Down Slightly Across the Country
Published on Dec 7, 2010
Read 'Study Finds Small Business Bankruptcy Filings to be Down Slightly Across the Country' at 'Time to Start Up,' the small business blog by BizFilings.
A new study released by Equifax finds small business bankruptcies have experienced a general decline in filings, according to data from the third quarter. The bankruptcy survey, which focuses on select metropolitan regions across the country, is viewed by many to be a crucial indicator of small business activity and health.
Overall, bankruptcy filings in key urban areas fell by 4.41 percent compared to the 2009 third quarter, while filings fell by 1.23 percent since the beginning of the fiscal year.
The New York City tri-state area experienced a 1.56 percent decline in small business bankruptcy filings - a modest decrease but comforting compared to California's Inland Empire region, which saw a 10 percent gain.
"Our analysis on small business bankruptcy continues to indicate ongoing uncertainty in today's marketplace," said Dr. Reza Barazesh, senior vice president of Equifax Commercial Information Solutions. "While business bankruptcies have begun to reverse course in some regions, it remains to be seen how small firms will steer through economic headwinds and sustain growth."
Other recent small business surveys have shown confidence among owners and entrepreneurs starting a company to be improving. With the gradually improving availability of credit, as well as plans to hire and increase spending in 2011, small businesses seem poised for the rebound that is expected to occur within the first half of next year.