The small business sector started 2013 with a bang, as more businesses paid their bills on time and fewer relied on credit card debt. The improvements fueled a 3.2-point increase in D&B’s Small Business Health Index.

1. D&B Small Business Health Index
March 2013 www.dnb.com
March 2013
What’s driving the US Small Business Health Index: Overall
s
mall business sector? 120
The small business sector started 2013 with a bang, 100
as more businesses paid their bills on time and fewer
relied on credit card debt. The improvements fueled 80
a 3.2-point increase in DB’s Small Business Health
Index. Business services performed strongest in 60 3.2
points
ry
ua
January 2013, followed by robust improvements in
40 Jan
manufacturing. Other economic indicators are driving
small business health: production of appliances,
20
furniture, and carpeting rose 2 percent, while sales of
retail and food services and food prices also rose. 0
Dec 04 Dec 06 Dec 08 Dec 10 Jan 13
Source: DB Global Data, Insights Analytics
Small Business Failures Payment Delinquency
160
160 50
50
155
155 48
48
150
150 46
46
145
145 44
44
140
140 42
42
Oct 2012
Oct 2012 Nov 2012
Nov 2012 Dec 2012
Dec 2012 Jan 2013
Jan 2013 Oct 2012
Oct 2012 Nov 2012
Nov 2012 Dec 2012
Dec 2012 Jan 2013
Jan 2013
Slightly fewer small businesses closed their doors in A significant number of small businesses did a better
January than in December 2012, although all major job of paying their bills in January, particularly in the
sectors continued to register bankruptcies and closures. business services and construction industries.
Credit Card Delinquency Credit Card Utilization

2. 145
145 44
44
140
140 42
42
Oct 2012
Oct 2012 Nov 2012
Nov 2012 Dec 2012
Dec 2012 Jan 2013
Jan 2013 Oct 2012
Oct 2012 Nov 2012
Nov 2012 Dec 2012
Dec 2012 Jan 2013
Jan 2013
www.dnb.com
March 2013
Credit Card Delinquency Credit Card Utilization
80
80 50
50
79
79 48
48
78
78 46
46
77
77 44
44
76
76 42
42
Oct 2012
Oct 2012 Nov 2012
Nov 2012 Dec 2012
Dec 2012 Jan 2013
Jan 2013 Oct 2012
Oct 2012 Nov 2012
Nov 2012 Dec 2012
Dec 2012 Jan 2013
Jan 2013
Despite overall lower late payments, small businesses Fewer small businesses depended on credit cards in
struggled to pay their credit card bills on time in January, signaling improved access to more traditional
January, continuing a similar trend in late 2012. lending and financing.
What can we expect for small business?
Small businesses have reason for optimism in 2013, although challenges remain.
Higher gas prices, rising payroll taxes, and federal sequestration cuts pose considerable
obstacles to economic growth. Improving retail, non-durable manufacturing, and
on-time bill payments may move the economy forward. Nevertheless, small business
volatility will likely be the norm for the first few months of 2013.
What is the Small Business Health Index?
DB’s monthly Small Business Health Index (SBHI) measures and combines pro- and counter-cyclical elements to provide
small business health through payment patterns, failure a simple, representative number. Using 2004 as the base year
rates, and credit utilization. The SBHI follows a sampling of (Index value 100), improvement is designated by an Index
all active small businesses with fewer than 100 employees value above 100.
DB’s informed perspective puts the future in focus, helping you protect,
grow, and empower your business. To learn more, visit www.dnb.com
© Dun Bradstreet, Inc. 2013. All rights reserved. (DB-3438 3/13)