Decline in Small Business Bankruptcies Into Second Year
The quarterly number of small business filings for bankruptcies has been declining for more than a year, according to Equifax study results.
The Atlanta-based commercial information solutions mega-provider said Monday analysis of a recent Equifax study revealed an 11 percent drop in third-quarter small business bankruptcy filings compared to the same quarter last year. That’s 19 percent fewer overall small business failures resulting in bankruptcy since the trend peaked during Q2 of 2009, pointed out the announcement published on the company’s website. With five quarters of decline in this kind of negative activity, analysts and small business owners might be tempted to invest the data toward any inkling of optimism.
"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," said Dr. Reza Barazesh, senior vice president. "Small businesses are still having a tough time. But the numbers are beginning to indicate that some of the stresses may be abating."
Equifax determined the figures after the study analyzed Chapter 7, 11 and 13 filings along with data from more than 24-million other commercial enterprises with 100 or fewer employees.
During mid-term election campaigning and fundraising appearances, President Barack Obama continues to promise tax cuts for small businesses, mentioning 16 tax cuts he has already signed.
"When our small businesses don't do well, then America doesn't do well," said Obama, quoted in USA Today. The article also mentions the president taking Republicans to task for earlier this year opposing tax breaks and a tax bill designed to help employers hire more workers.
Discover Financial Services offered another shot in the arm for the economy as a recent survey indicated small business owners are growing more confident, October’s numbers getting a 10.4 point boost from September, reported The Wall Street Journal today.
"This is politically charged atmosphere,” Discover business card director, Ryan Scully says. “Small business owners are likely in a holding pattern with the rest of us to see how the economy responds after Election Day. When we asked small business owners whether there would be a greater impact on the economy if Republicans win control of Congress or Democrats remain the majority, they leaned in the direction of having a change."