Infographic: Small businesses winning the fight against zombies

Infographic: Small businesses winning the fight against zombiesThursday, July 18, 2013 by Jon

British businesses are shrugging off their “zombie” label by solving the critical financial problems that have plagued them since 2007. As the economy plunged, reports suggested a huge number of small businesses were being supported by low cost loans and did not have long term recovery plans. But, the struggle seems to be over as small businesses fight back and reclaim their future profitability.


The number of businesses classified as “zombies” has fallen by 39% year-on-year according to the latest research by Begbies Traynor. Just 3,001 British companies are dealing with this combination of low cost loan and uncertain growth now, compared to 4,947 this time last year.

The decline of zombies has been hailed as one of the first real signs of economic recovery in the UK by Begbies Traynor, with professional services and construction leading the way.

“With critical distress levels falling at a record pace, this quarter’s improvement appears to be the first real sign that the UK economy has turned a corner towards a sustained recovery.” Julie Palmer, Partner at Begbies Traynor said, “However we have real fears that many SMEs will have serious financial difficulties at the time they least expect – during a recovery.”

Keeping your cashflow alive

These fears are that small businesses who react slowly to the economic recovery will end up over-trading and suffering from extremely restricted cash flow. However, with proper planning, this can easily be avoided and the King of Cashflow is a great person to have on your side.

The same research found that the number of businesses experiencing significant financial problems, a lesser worry, is also declining. 176,677 businesses are in this category now, compared to 216,396 in 2012.

This is great news for small businesses in Britain and proof that many are in a brilliant position to grow in the country’s recovery. But, it’s clear this period is one that businesses need to plan for carefully to make sure they don’t miss out on huge opportunities.