Record Number of Mom-and-Pop Bankruptcies? Not Quite.
A recent report by Epiq Bankruptcy Analytics has sparked concerns that Donald Trump's policies are crippling Main Street, citing a record number of mom-and-pop store bankruptcies. However, the numbers don't quite tell the whole story. With 2,221 filings for bankruptcy protection under subchapter V in 2024, it appears that small businesses are going belly up at an alarming rate.
But let's take a closer look. In reality, the number of bankruptcies has only increased by ten compared to last year, with an average of 1,379 filings between 2020 and 2023. To put this into perspective, there are over 33 million small businesses in the US, making these numbers statistically insignificant.
Even when considering all business sizes, bankruptcy filings have risen by over 25% since Joe Biden took office. However, these numbers are still lower than those of the previous decade. It's worth noting that the COVID-19 pandemic didn't help, but even before the pandemic, the number of US businesses going bankrupt was still at historically low levels.
So why aren't we seeing more bankruptcies? One reason is that bankruptcy filings are relatively rare for small businesses and startups. Many business owners choose not to file for bankruptcy due to the costs associated with it, opting instead to walk away from a struggling company. This trend is further exemplified by the fact that suppliers often write off losses and move on, rather than pursuing collection.
The reality is that most small businesses are doing well, with over 70% expecting revenue growth in the next year. The National Federation of Independent Businesses reports optimism levels higher than its 52-year average, while Comerica Bank states that 79% of small businesses are expecting revenue growth. The US Chamber of Commerce also reports a high level of confidence among its members.
In conclusion, while the number of mom-and-pop bankruptcies under subchapter V may be at a "historic high," it's essential to put this into context. There are plenty of other legitimate reasons to criticize Trump, and an increase in small business bankruptcies is not one of them.
A recent report by Epiq Bankruptcy Analytics has sparked concerns that Donald Trump's policies are crippling Main Street, citing a record number of mom-and-pop store bankruptcies. However, the numbers don't quite tell the whole story. With 2,221 filings for bankruptcy protection under subchapter V in 2024, it appears that small businesses are going belly up at an alarming rate.
But let's take a closer look. In reality, the number of bankruptcies has only increased by ten compared to last year, with an average of 1,379 filings between 2020 and 2023. To put this into perspective, there are over 33 million small businesses in the US, making these numbers statistically insignificant.
Even when considering all business sizes, bankruptcy filings have risen by over 25% since Joe Biden took office. However, these numbers are still lower than those of the previous decade. It's worth noting that the COVID-19 pandemic didn't help, but even before the pandemic, the number of US businesses going bankrupt was still at historically low levels.
So why aren't we seeing more bankruptcies? One reason is that bankruptcy filings are relatively rare for small businesses and startups. Many business owners choose not to file for bankruptcy due to the costs associated with it, opting instead to walk away from a struggling company. This trend is further exemplified by the fact that suppliers often write off losses and move on, rather than pursuing collection.
The reality is that most small businesses are doing well, with over 70% expecting revenue growth in the next year. The National Federation of Independent Businesses reports optimism levels higher than its 52-year average, while Comerica Bank states that 79% of small businesses are expecting revenue growth. The US Chamber of Commerce also reports a high level of confidence among its members.
In conclusion, while the number of mom-and-pop bankruptcies under subchapter V may be at a "historic high," it's essential to put this into context. There are plenty of other legitimate reasons to criticize Trump, and an increase in small business bankruptcies is not one of them.
, its all about stats n stuff... 2k22 had way more filings than 2024 lol 33 mil small biz's tho 
thats a lot 
n Biden took office 5 yrs ago so dont get ur hopes up 
but on a serious note, its all abt context n perspective 
most small biz's r doin fine 
just cuz some might be struggling dont mean its trumps fault 
. But seriously, 2,221 filings is still super low compared to how many small businesses there are in the US. And when you look at all business sizes, bankruptcy filings have actually gone up since Biden took office 
. I think we need to be a bit more nuanced in our thinking here... just 'cause we don't want to blame Trump doesn't mean we can just ignore the issue 
but honestly i think its a bit more complicated than that 
if u look at the bigger picture, like the overall numbers, they're not even that crazy 33 million small businesses in us tho is like a huge chunk of the economy so yeah its gonna be a little hard to get too worked up over just 2k or so filings 
also did u know that ppl dont actually file for bankruptcy bc they wanna? like business owners are all "im outta here" without even having to go thru the hassle and cost of it lol 
. Like, 2k+ bankruptcies is still a tiny fraction of all businesses out there - 33m and counting! 
. Plus, suppliers are always writing off losses anyway, it's just part of doing business 
. I mean, we're supposed to be optimistic about growth and all that 
... 70% expecting revenue growth? That's pretty cool! 
So let's not jump to conclusions here, right?
it's not all doom and gloom for small biz owners. I mean, 70% of 'em are expecting revenue growth? That's some serious optimism 
like, yes we care about Main Street, but let's take a deep breath and look at the bigger picture 
. those numbers might be a little alarming, but they're not exactly breaking news 
and I gotta say, they're just that - stats. 2k+ filings is a lot, but it's still only 0.007% of all small businesses in the US 
. And let's not forget, most business owners would rather walk away from a struggling company than file for bankruptcy 
. Can we just focus on the positives here? Like, over 70% of small businesses are expecting growth? That's amazing news! 
and i'm trying to figure out how to use the camera 
it's supposed to be super good. anyway back to this story, i guess it's kinda weird that people are freaking out over all these mom-and-pop bankrupts, doesn't it seem like the numbers aren't really that bad? 
its like they r trying 2 make trump sound bad lol anyway i was reading dis article n it says that actually its kinda low compared 2 other yrs...like since joe biden took office there's been a 25% increase in bankruptcies but thats still way lower than the previous decade 
. And let's not forget, many business owners just choose to walk away instead of filing for bankruptcy... that's a thing too! 
. I mean, think about it, most business owners would rather just walk away from their struggling company than go through all that hassle and cost of filing for bankruptcy 
.
. I'm not trying to make excuses or anything, but it's hard to say that Trump's policies are having some big negative impact when, like, most businesses are doing fine 
. Plus, even before Trump took office, bankruptcies were already at historically low levels 
. But what really gets me is that a lot of business owners just don't file for bankruptcy because it's expensive 
and we should be focusing on what really matters - supporting our small businesses and entrepreneurs