Small Businesses Facing Increased Bankruptcies in 2024, The Worst Since 2010
In the first half of 2024, over 300 small businesses have filed for bankruptcy, the highest number since 2010.*
Most of these bankruptcies are in the consumer discretionary sector, which includes restaurants, clothing stores, and car dealerships.
The SMB Center believes there are several reasons for this increase:
- Record-high interest rates and tight credit are making it hard for small businesses to borrow money for essential operations,
- Declining consumer demand, and
- Supply-chain issues are also contributing to the challenges, pushing many small businesses to the brink of bankruptcy.
These factors disproportionately affect small and mid-sized businesses, which lack the resources available to larger corporations.
At Starcycle, we understand the immense pressure small businesses face. We support small businesses considering shutting down by optimizing the wind up process and ensuring that the transition is as smooth and efficient as possible.
If you are planning to shut down your business, keep in mind that a well-planned transition, even in challenging times, can open doors to new opportunities.
If you are looking for additional support during your closure, book a free consultation with us to explore your options. We are here to listen and provide a guiding light as you navigate this challenging period in your entrepreneurial journey.
*Filing for bankruptcy is a legal process that individuals, businesses, or other entities can initiate when they are unable to repay their outstanding debts.