Small Business Bankruptcies On Rise

According to a new report from Dun & Bradstreet the number of small business that got into trouble in the fourth quarter of 2011 rose significantly.

This is not surprising given that there was a sharp increase in the number of small business start ups in the last three years. With the barriers to entry for small business at an all time low we have seen a huge growth across the board in small business. Most of them have been in the service business arena.

We predicted some time ago that there would be an eventual consolidation of the small business sector once the economic contraction took effect.

Here are several recent sources reporting on the increase in small business bankruptcies:

• Small business bankruptcies on the rise | Nett

A new report from analyst firm Dun & Bradstreet has found that small business failures in the fourth quarter of 2011 rose 42% compared to the same period in 2011. The number of businesses calling it quits was down 10% …

• Business bankruptcy on the rise – RetailBiz: Australian Retail News

The number of small businesses going bankrupt jumped by 48 per cent over the last 12 months, while small business start-ups fell by 95 per cent over the same period. Analysis by Dun & Bradstreet of business start-ups and …

It is our belief that things will become worse for small business before they get better!

The full impact of the financial crisis in Europe and the high debt levels of the USA means there is a lot more pain to come for small business. Australia has yet to feel the full impact of a tightening economic outlook.

There is good news though.

For those small business owners who plan for and prepare for the coming changes you can in fact grow your business. When your competitors start to go out of business it is time to start picking up their customers and gaining market share. Not all small businesses will be able to do so however those with the right marketing strategy and systems will be positioned to take advantage of these changes.

If you do not have a marketing system established in your business then now might be the time to do so.