THOSE micro businesses employing six to 10 people are showing the greatest resilience in the current economic turbulence.

According to Experian’s latest Insolvency Index, businesses with 6-10 employees saw the biggest annual drop in the rate of insolvencies from 0.21 in September last year to 0.16 in 2010. It was also the only sized business to see a quarterly drop from 0.17% in August.

Overall, Experian said the rate of insolvencies continued to fall.

However, the news for the North East was less good. Business failures in the North East of England more than doubled in the space of two months, reported Experian.

Max Firth, managing principle of Experian company pH commented: “The North East of England’s business population is one of the smallest so every insolvency can dramatically affect the rate, which explains why we have seen a big variation between August and September. This underlines why businesses must be vigilant and closely monitor the financial health of every organisation they do business with.”

The overall financial strength score for businesses echoed the insolvency rate with a positive annual change and a negative monthly variance, Experian added – up to 81.05 from 80.79 in September last year but down from 81.06 last month.

Recently, b2group reported that SMEs were displaying their new-found financial confidence by actively searching for new company cars. Of the small businesses surveyed, 26% were planning to change their business cars.

Insolvency continues to fall overall