California Small Business Crisis: One-Fifth Doubt Survival, Bankruptcies Up 81%

By: EW News Desk Team   Date: 22 March 2010

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EW News Desk Team

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22 March 2010

A recent report showed that 21 percent of California small businesses believe they will fold in the next three years.

The annual survey, conducted by advocacy group Small Business California, revealed low confidence in the state’s business and political climate among business owners.

A recent report showed that 21 percent of California small businesses believe they will fold in the next three years.

The annual survey, conducted by advocacy group Small Business California, revealed low confidence in the state’s business and political climate among business owners.

“That 21-percent figure is particularly shocking,” says Scott Hauge, President of SBC, who also owns a small insurance firm. “That should be unsettling for policymakers.”

Other research confirms this trend. According to analysts at Equifax, a credit firm, bankruptcies among small businesses in California have increased 81 percent since last year.

According to the federal Small Business Administration, small businesses account for more than 60 percent of job creation in the United States every year.

It estimates that are 3 million small businesses in California, two-thirds of which are sole proprietors.


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