How economic pressures are damaging Britain’s ‘zombie firms’

By Erhan Kilincarslan, Reader in Accounting and Finance, University of Huddersfield
Giray Gozgor, Associate Professor of Economics & Finance, School of Management, University of Bradford

The UK’s borrowing costs are higher than the government would like them to be. Economic growth remains weak, and public finances are under constant pressure.

All of this make things difficult for pretty much everybody. But one particularly vulnerable group are the small businesses which survive mainly through continued borrowing.

Known as “zombie” firms, these are companies with persistently weak profitability which…

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