A Profile of Utah Small Business Bankruptcies: A Rural-Urban comparison

Recipient Organization
UTAH STATE UNIVERSITY
(N/A)
LOGAN,UT 84322

Performing Department
FAMILY, CONSUMER, AND HUMAN DEVELOPMENT

Non Technical Summary
Twelve percent of the personal bankruptcy filings in Utah in 2003-2004 involved a small business. This project will examine if any of the personal bankruptcy filings were due to small business failure.

Animal Health Component

15%

Research Effort Categories

Basic

85%

Applied

15%

Developmental

(N/A)

Classification

Knowledge Area (KA)	Subject of Investigation (SOI)	Field of Science (FOS)	Percent
607	6010	3010	85%
607	6199	3010	15%

Knowledge Area
607 - Consumer Economics;

Subject Of Investigation
6199 - Economy, general/other; 6010 - Individuals;

Field Of Science
3010 - Economics;

Keywords

bankruptcy

personal bankruptcy

chapter 7 bankruptcy

chapter 11 bankruptcy

business failure

utah bankruptcy

Goals / Objectives
The objectives guiding this study are to: * develop a financial and demographic profile of Utah entrepreneurs in bankruptcy, * develop a profile of the failed businesses, * compare rural to urban entrepreneurs and businesses in bankruptcy, * determine the debtor's resaons for filing bankruptcy, * trace the income/employment path of recovery after filing, * determine if gender difference exist in the variable under study, and * determine why some entrepreneurs chose to file a chapter 13 repayment plan rather than a chpter 7 liquidation.

Project Methods
A letter explaining the study and inviting participation will be sent to 134 debtors who filed for bankruptcy in Utah in 2003-2004 and reported operating a business. A brief survey to collect demographic information and business type, an informed consent form, and a business reply envelope will be included in the mailing. To achieve the objectives of the study a questionnaire will be developed based on previous studies. After the initial mailing, subjects will be contacted by phone so that the researchers can answer questions about the study and schedule an interview. Descriptive statisitcs will be used as this study will provide base-line data.

Progress 07/01/06 to 06/30/09

Outputs
OUTPUTS: A survey was developed and submitted for IRB approval. The survey was mailed to 100 persons/couples who indicated operating a business on their bankruptcy filing. The surveys were sent with an address corrections notice. Surveys were resent to address correction notices. Addresses from surveys returned marked as no forwarding address were deleted from the files and a second mailing of surveys was sent to 72 persons/couples. Only two completed surveys were returned. This was not an adequate number with which to work or analyze. PARTICIPANTS: This study is conducted with Dr. Jean Lown. TARGET AUDIENCES: Persons who filed for bankruptcy and according to records indicated that they were involved in operating a business. PROJECT MODIFICATIONS: To collect data on a personal bankruptcy filing that indicate a business was also being operated, it would probaly be better to personally try to interview the person(s) as they leave the hearing. It may be that people want to put this filing behind them and move on with their life.

Impacts
None to report this year.

Publications

No publications reported this period

Progress 01/01/07 to 12/31/07

Outputs
OUTPUTS: A survey was developed and sent to reviewers. The instrument was sent to the IRB for approval. After several corrections, IRB approval was given. The survey was then mailed to the subjects with a directive for an address correction. PARTICIPANTS: This study is conducted with Dr. Jean Lown. TARGET AUDIENCES: Persons who filed for bankruptcy and according to records indicated that they were involved in operating a business.

Impacts
Several of the surveys were returned as undeliverable and no forwarding address. The response rate was extremely low. The survey was mailed a second time to the non-respondents. Again the response rate was extremely low. Another mailing will be mailed in January 2008.

Publications

No publications reported this period

Progress 01/01/06 to 12/31/06

Outputs
The project just received approval from Utah State University's IRB. The pilot survey will be mailed after the first of the year.

Impacts
Results of this study will be helpful in working with potential/existing small/micro business owners as well as business educators.

Publications

No publications reported this period