Equifax’s latest statistics showed bankruptcy filings made by small businesses in the fourth quarter of 2010 slipped 18 percent, according to a report from the Wall Street Journal. This marked the sixth consecutive quarter of declines, even as consumer filings continued to increase nationwide. In all, 27,657 small businesses – defined as companies that employ fewer than 100 people – filed for protection to either liquidate their assets or reorganize.
[Resource: Bankruptcy Survival Guide]
“Traditionally, (small businesses have) bounced back quicker because they’re more nimble,” Giovanni Coratolo, vice president of small business policy at the U.S. Chamber of Commerce, told the newspaper. “Today, the breed of small businesses that are there today, they’re conservative. They want clear signs of opportunity before they go forward with any investment.”
In addition, many consumer filings have been fueled by the unemployment and foreclosure crises that are still ongoing across the country, which often have less of an effect on small businesses, the report said.
[Infographic: One Bankruptcy Every 15 Seconds]
During 2010, more than 1.47 million consumers and businesses of all sizes filed for bankruptcy. While that was an increase of 8 percent over 2009, it was also the smallest jump in a number of years.