A new study released Tuesday by Equifax finds small business bankruptcy filings to be down across the country's key urban regions for bankruptcy. Bankruptcy rates, particularly among small businesses, are often viewed as indicators of small business viability as well as wider economic conditions.
In all, bankruptcy filings in the targeted urban areas fell by 4.41 percent, compared to the 2009 third quarter. Since the current fiscal year began, filings have fallen by 1.23 percent.
Meanwhile, the New York City tri-state region experienced a 1.56 percent decline in small business bankruptcy filings. California's Inland Empire region saw the most dramatic gain, with 835 total filings - a 10 percent increase that may challenge many startups' hopes to incorporate in California.
"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."
However, other recent surveys - such as the Discover Small Business Watch confidence index - have shown marked improvements in small business activity. As a significant economic rebound is not expected until mid-2011, these figures provide reassurance for discouraged small businesses owners.
Tags : ca, ny, small business management, tx
Posted: Dec 1st, 2010