Small Business Bankruptcy Count Continues to Fall, Rate Slows
Small businesses were hit hard by the Great Recession and they are still in process of rebuilding. Thankfully, the rate of small business bankruptcies continues to fall, although the rate of decline has slowed. An article from the Wall Street Journal explains the situation.
After peaking in early 2009, the number of small firms filing for bankruptcy began to drop. Last year, the rate of decline picked up, with bankruptcies dropping at least 4.4% in each quarter on the Small-Business Bankruptcy Index, a metric compiled by credit agency Equifax Inc.
In the most recent quarter, however, small-business bankruptcies decreased less than 1% and are hovering at 2008 levels. The Small-Business Bankruptcy Index compiles Chapter 7, 11 and 13 filings among commercial entities of fewer than 100 employees. Equifax also analyzes consumer bankruptcies, which increased 4.3% from the last quarter, after consecutive decreases from mid- 2010 through the first quarter of 2011.