However, mid-size businesses, between 20-100 employees, are yet to see an improvement as their statistics remained stagnant.
The total number of insolvencies fell by from 1,834 in February 2010 to 1,605 in February 2011, which brought the insolvency rate down to 0.08% from 0.10%.
Max Firth, managing director Experian subsidiary pH said: "The period of stability for businesses in the UK continues to head in a positive direction overall.
"However, while smaller and larger companies are improving, insolvency rates for the mid-sized companies continue at the same rate month on month. This could mean that in more challenging times they fall victim to being too large to be flexible and too small to rely on a solid, established business structure and long-term contracts."
Companies with more than 500 employees had the second-lowest rate of insolvencies, 0.09%, with one- and two-man bands the lowest, 0.06%.
Print, paper and packaging saw its insolvencies drop by more than half year-on-year, with the percentage of industry insolvencies per company in the industry going from 0.2% last year to 0.06% this year.
