By US Daily Review Staff.
Small business bankruptcies declined 36% from Q1 2010 to Q1 2012—with a noticeable drop in key Western states—and are projected to continue to decline, according to Equifax’s analysis of national bankruptcy trends.
“The downward trend in the number of small business bankruptcies shows continued stabilization of the market,” said Rissi Lovern, leader of Equifax’s Commercial Information Solutions Risk Center of Excellence, “and is due largely to the belt tightening of business owners, as well as increasing consumer confidence and spending.”
While Western states continue to top the list among MSAs with the highest number of small business bankruptcies, the region also experienced the most significant decrease in bankruptcy filings year over year from Q1 2011 to Q1 2012—more than a 40% decline in some MSAs.
Equifax data shows nearly all of the 15 MSAs topping the list of those with the greatest number of small business bankruptcies, experienced double-digit year-over-year declines in business failures, since Q1 2011. The Sacramento-Arden-Arcade-Roseville, CaliforniaMSA reported the most significant drop, with a 42.25% decrease in bankruptcy petitions during the time period; the Riverside-San Bernadino-Ontario, California MSA followed closely with a 41.27% decrease.
About the Study
Equifax analyzed Chapter 7, 11 and 13 filings, as part of its comparative study on bankruptcy petitions quarter over quarter. Equifax classifies a small business as a commercial entity of fewer than 100 employees.
To view a complete listing of small business bankruptcy filings by MSA, visithttp://www.multivu.com/assets/55049/documents/BK-Rank-Order-2012-Q1-original.pdf. Learn more about Equifax Small Business Solutions at www.equifaxsmallbusiness.com.