About 400 small businesses in San Diego, Carlsbad and San Marcos went bankrupt in the year’s first financial quarter, according to an Equifax report.
That makes San Diego the fourth worst county in the country for small businesses right now.
Four of the top five counties that saw the most small business bankruptcies were in California. Three of the top five were in Southern California.
USD Economist Alan Gin says San Diego small businesses may be more at risk simply because there are more of them in San Diego. The Small Business Administration in San Diego estimates that there are between 70,000 and 80,000 small businesses in San Diego.
San Diego is also a hot spot for small start-up businesses in areas such as biotechnology.
“A lot of businesses are start-ups, and in general, these areas are very risky,” Gin said.
There are also fewer corporate headquarters in San Diego, which usually enjoy some amount of protection from bankruptcy, Gin added.
San Diego was fourth worst for the amount of businesses to file bankruptcy behind Los Angeles (1,048 businesses), Riverside (629) and Sacramento (434).