New Bankruptcy Data Reveals Business Vulnerabilities  

U.S. Business Bankruptcies Have Jumped 90% and Are Expected to Keep Rising 

In 2024, nearly 100 businesses in the United States went bankrupt every day – the highest rate in the past 12 years. 

Business bankruptcies in the U.S., which include filings by sole proprietorships in addition to larger enterprises, increased 90% from 2022 to 2024. Filings rose 6.2% year-over-year in 2024, over and above the 78.9% increase in filings from 2022 to 2023. The total number of U.S. businesses becoming insolvent rose to 35,640 in 2024 from 18,765 in 2022.   

The increase in business bankruptcies is not a trend unique to the U.S.  

Dun & Bradstreet and its Worldwide Network, an unrivaled global partnership with the world’s leading business information providers across the globe, have been tracking commercial bankruptcies around the world for decades to help businesses anticipate risks and navigate financial uncertainty. The data shows that in 2024, global business bankruptcies reached their highest point in more than a decade.  

“The rise in bankruptcies was not unexpected — it was, in many ways, the delayed outcome of economic forces set in motion since the COVID-19 pandemic,” said Julian Prower, who is the Chief Operations Officer of Dun & Bradstreet International. “Following a prolonged period of an unusually low rate of insolvencies, businesses are now confronting a reality where financial vulnerabilities are becoming more apparent as monetary conditions remain tight and global demand softens.” 

In the U.S., around 9,000 businesses have gone under each quarter since Q3 2023. Small businesses (36%) and sole proprietorships (13%) made up almost half of U.S. business bankruptcies in 2023. Pre-pandemic, the contribution of sole proprietorships to overall business bankruptcies was in the single digits. The proportions were similar the following year, with 48% of business bankruptcies affecting small businesses or sole proprietorships. 

Globally, the average number of bankruptcies per economy among the 47 economies monitored by Dun & Bradstreet fell 16% between 2020 and 2022 compared with pre-pandemic levels (2018-2019), as government support and creditors' forbearance helped struggling firms stay afloat. 

“This environment was never sustainable,” Prower said. “As policy support was rolled back and interest rates started to rise, the expected correction began in 2023 and accelerated further in 2024. In 2024, corporate bankruptcies reached their highest level in over a decade, with 64% of the economies we track experiencing an increase in insolvencies — up from 47% in 2019.” 

Dun & Bradstreet’s analysis, published in the 2025 Global Bankruptcy Report, shows the rise in business bankruptcies was neither sudden nor uniform across regions, but was rather the result of accumulating financial strain from previous years.  

“While many firms managed to navigate the initial shocks of the pandemic through government support and accommodative monetary policy, the withdrawal of these measures exposed fundamental vulnerabilities,” said Dun & Bradstreet Global Chief Economist Dr. Arun Singh. “The global economy entered 2024 grappling with the aftershocks of inflation, interest rate hikes, and supply chain restructuring — each of which played a crucial role in shaping the insolvency trends observed throughout the year.” 

The trend is expected to persist in 2025, driven by the deepening of underlying fault lines.  

“Business bankruptcies will continue to rise,” Singh said. “While economic conditions are expected to improve modestly, risks remain skewed to the downside, driven by tight credit conditions, tariffs and trade uncertainty, and geopolitical tensions. Though inflation is easing, and interest rates are expected to decline, these shifts will not be enough to reverse the insolvency trend.” 

According to Singh, refinancing challenges will intensify as lenders remain cautious, particularly for lower-rated corporate debt maturing in 2025. Businesses with heavy debt burdens and weak earnings will struggle to secure new funding, increasing default risks.  

Dun & Bradstreet’s analysis shows geopolitical tensions will further strain businesses, fueling supply chain disruptions and market volatility.  

“With financial pressures mounting across industries, corporate bankruptcies will remain on an upward trajectory throughout 2025, with little relief expected until late in the year,” Singh said.