The failures of large corporations in recent years have garnered intense media attention: from the infamous Enron case to the more recent bank collapses, corporate bankruptcy often has negative consequences for a large number of people. Small businesses, on the other hand, usually go unnoticed by the mass media.
Despite the greater number of people affected in cases like Enron, the effects of small business bankruptcy can be much more severe on the owners and any employees. Since they have more limited means than larger companies, small businesses can be more susceptible to fluctuations in local economies. Local restaurants, for example, commonly go out of business during economic downturns, because people are less likely to dine out when the economy is weak.