Small Biz Bankruptcies Decrease Again

Small businesses continue to do a better and better job of actually staying in business, according to new data.  Equifax found that there’s been a drop in small business bankruptcies for the fifth consecutive quarter.

Small business bankruptcies peaked in early 2009, with 37,299 reported during the second quarter.  By the third quarter of 2009, things were significantly better, with only 34,257 on record.

Now it looks like the situation’s improved even more, with just 30,392 bankruptcies reported during the third quarter of this year.  That represents a drop of 18.5 percent since the second quarter of 2009, and a decrease of 11.3 percent since the third quarter, which is impressive either way.

Reza Barazesh, a senior vice president of Equifax Commercial Information Solutions, also observed in a statement, "For more than a year, we have seen a decline in the number of small business bankruptcies but this is the biggest percentage decrease during that period."

As a result, he concluded, "Small businesses are still having a tough time.  But the numbers are beginning to indicate that some of the stresses may be abating."

Let’s hope things keep shifting in this direction as we move through quarter four.