Euler Hermes UK says small firms are fittest for survival

Jan 26 2010 by Henryk Zientek, Huddersfield Daily Examiner

SMALL firms are better equipped to withstand insolvency, it is claimed.

Figures from credit insurer Euler Hermes UK showed that small companies with shareholder funds of less than £100,000 are less likely to fail than those with substantially larger resources.

“It is only when we look at companies with shareholder funds of more than £5m that the insolvency rate really starts to come back down,” said Kris Macauley, head of risk information. “Businesses falling in the bands in between show considerably higher rates of insolvency.”