Japan sees surge in small‑business bankruptcies in 2026

Bankruptcy filings among Japanese small and medium‑sized enterprises have risen sharply in the first half of 2026. Data from Imperial Data Bank indicate that the total number of bankruptcies this year already exceeds the peak recorded after the 2008 Lehman Shock, reflecting the lingering impact of pandemic‑era loan policies, higher prices and a tight labour market.

In Fukui Prefecture, both Tokyo Shoko Research and Imperial Data Bank reported 40‑42 insolvencies each, marking the fourth consecutive half‑year of increase. The majority involve firms with fewer than five employees (82.5% of cases) and debt under ¥100 million, with manufacturing (≈10‑11 cases) and construction (≈9‑10 cases) leading the sector breakdown. Only one large‑scale bankruptcy exceeded ¥1 billion in debt, while older firms (30+ years) accounted for roughly half of the filings. Analysts warn that continued input‑cost pressure and difficulty in price‑pass‑through could further strain small operators.