In what appears to be good economic news for the economy, small business bankruptcies declined 36 percent from the first quarter of 2010 to the first quarter of 2012—and the decline is projected to continue, according to a new study.
The Atlanta-based credit rating firm Equifax analyzed Chapter 7, 11 and 13 filings for the report. Its definition of small business was fewer than 100 employees.
“The downward trend in the number of small business bankruptcies shows continued stabilization of the market, and is due largely to the belt tightening of business owners, as well as increasing consumer confidence and spending,” says Rissi Lovern, leader of Equifax’s Commercial Information Solutions Risk Center of Excellence. Read more