Many small business owners will run into financial difficulties at one time or another. In the even that your business has become insolvent, then bankruptcy may be an option. In general, small business owners (sole proprietors, partnerships and some LLC's and even small corporations) have the same bankruptcy options as an individual.
A small business owner may use Chapter 7 to liquidate the business and discharge the business debt, but this usually means the business ceases to function.
If you want to continue to run your business, assuming it is possible to do so, a Chapter 13 bankruptcy may be able to help.
Larger corporations and other types of companies may have to use Chapter 11 bankruptcy. This type of bankruptcy is extraordinarily complex and often involves tens of thousands if not hundreds of thousands of dollars in legal fees, so it only makes sense for very large companies.