A new report from Experian has revealed that a high number of small businesses have managed to pull themselves back from the brink of bankruptcy.
Experian polled 44,000 UK companies in 2006, which were facing financial trouble at the time. When contacting the companies for a new survey, they discovered that two thirds of them had survived.
Microbusinesses (those with five employees or less) were revealed to have a lower survival rate of businesses with more than 100 employees, but the study found that if a microbusiness does survive hard times, it is more likely to get back to excellent financial health.
Craig Boundy, UK and Ireland managing director of Experian, said those with five or fewer employees showed “particular adaptability through a period of unprecedented challenges”.
“The directors of these microbusinesses have demonstrated sharp business acumen, and that they have the greatest potential to continue to create jobs and growth in our economy,” he said.