February 2006 - The Federation of Small Businesses

Now with 190,000 members, it is hard to imagine the small beginnings of the now hugely successful Federation of Small Businesses (FSB).  Gathered at the Red Lion Country Inn, Clanville for its February meeting, Andover Women in Business Club members and guests were fascinated to hear how this large organisation was born.

“We were just a small group of people simply meeting in a pub, all sharing a desire to do something to improve the lot of small businesses,” said Colin Ward, a founder member of FSB, and after dinner speaker for the Club.  “It was June 1974 – more than thirty years ago now – when we decided to start the Federation and we could not have anticipated how big it would become.”

The founding group agreed it needed to be a national organisation but realised it would be expensive to set up and would have to provide a large range of services to be successful.  Today the Federation has its own legal and insurance sections, it provides tax help, employment protection and ISP services, all at rates more competitive than buying services elsewhere.  “We cater for all small businesses – those with under 200 staff, which represent 96% of the total businesses in the country,” commented Colin.

From the outset, Federation Officers have been unsalaried despite the growth of the operation and its services and its expansion internationally.  Throughout its history, it has strived to get a better deal for small businesses and was recently instrumental in United Kingdom businesses getting a business premises rebate.  It has also been responsible for the ruling that local authorities have to pay outstanding bills to small companies within 30 days.

Colin Ward with AWIBC members

The Federation of Small Businesses works closely with the CBI, the Institute of Directors and Chambers of Commerce and is non-political.  “Margaret Thatcher was the first prime minister to recognise the FSB’s importance,” said Colin, “and at that time, when I was Polices Chairman, I would meet with her every six weeks to discuss what measures the government could take to benefit our members.”

Local groups have the opportunity to meet each month to network and share ideas, with Andover currently having 300 paid-up members.  Members of the Club were clearly interested in the FSB’s work, generating a lively question-time after the talk and wanting to know in greater detail how its work could benefit their businesses.