“Small businesses are failing at an unprecedented rate,” said Al Angrisani, former Assistant U.S. Secretary of Labor and CEO of Angrisani Turnarounds. “According to our survey data, about two-thirds of small business owners are concerned or extremely concerned about business survival through the next two years.”
Equifax, the credit-reporting agency, reports U.S. small business
bankruptcy rates soared 81 percent in June 2009 compared with June
2008. More than 10,000 small businesses closed their doors, unable to
withstand continued assault on a number of fronts.
According to Angrisani, who has more than 20 years as a turnaround expert, three main issues are threatening small business survival in the current environment:
(1) Federal stimulus bills effectively overlook small business assistance and free enterprise solutions to the recession.
(2) Small businesses feel rising state and local taxes to fund state revenue shortfalls and are anticipating a federal tax increase in 2010 or 2011.
(3) Rising employee costs in the form of minimum wage increases and added health care costs.
“There is absolutely no reason for huge numbers of small businesses to fail next year,” said Angrisani. “There are examples right under our noses of business-friendly policies that work to keep small businesses up and running.”