A survey released this week by information service Equifax suggests economic turmoil and high bankruptcy filings in California may be holding back the rest of the country. While the study shows small business bankruptcy filings to be down across the nation, small businesses in California accounted for nearly 20 percent of all filings in 2010.
Most notable is the Los Angeles-Long Beach-Glendale region, which saw a 13.7 percent gain in bankruptcy filings from 2009 to 2010, reaching a total of 1,230. That figure was beat only by the entire state of Wisconsin, which saw a 16.5 percent gain but registered only 275 bankruptcies.
"For small businesses, the road to economic recovery was marked by a number of challenges in 2010 and many states such as California and Oregon face an uphill battle in the months ahead," said Dr. Reza Barazesh, senior vice president of Equifax. "Despite these hurdles, the landscape is showing some signs of improvement."
The Chicago-Naperville-Joliet region boasted the largest decrease, with a 30.1 percent drop. Overall, the surveyed regions nationwide saw a 6.2 percent decline in small business bankruptcy filings.
California is struggling to retain a small business community, as the state's large deficit and high taxes has discouraged many entrepreneurs from incorporating in California.
Tags : ca, incorporation news, small business management
Posted: Mar 16th, 2011