Federation of Small Businesses

The Federation of Small Businesses (FSB) is a UK-based business organisation that represents small and medium-sized businesses, as well as the self-employed. Founded in 1974 as the National Federation of Self Employed (NFSE), the organisation changed its name to the FSB in 1991. It operates as a not-for-profit and non-political entity with a membership-driven structure, offering a range of services to support small businesses. The FSB is registered as The National Federation of Self Employed & Small Businesses Limited.
 

The FSB provides its members with valuable services such as a 24-hour legal advice line, free business banking, and access to a variety of business resources. It also serves as a lobbying body, advocating for the interests of small businesses at local, national, and devolved government levels. Key areas of lobbying success for the FSB include the introduction of the Employment Allowance, small business rates relief, and measures to prevent the expansion of VAT thresholds for smaller businesses.
 

In 2018, the FSB underwent a modernisation process, transitioning from elected branches and regions to a new structure, with a more streamlined election and selection process. The FSB’s current leadership includes National Chair Martin McTague and Chief Executive Officer Julie Lilley. The FSB also has a Board of Directors overseeing its operations.
 

The FSB’s membership has grown significantly over the years, with more than 160,000 members by 2016, and over 200,000 when including joint, associate, and affiliate memberships. The organisation is known for its Small Business Index (SBI), which measures the confidence of small businesses in the UK. The FSB also operates subsidiaries in publications, recruitment, and other member services, ensuring continued support for the small business community.

The Federation of Small Businesses (FSB) was established in 1974 under the name National Federation of Self Employed (NFSE). The organisation was founded by Norman Small in response to the introduction of Class 4 National Insurance contributions, which added financial burdens to self-employed individuals. Norman Small recognised the need for an organisation to represent the interests of the self-employed, and this led to the creation of the NFSE. The organisation aimed to provide a collective voice for the self-employed, helping them navigate the challenges brought about by the new tax measures.
 

In the early days, the NFSE experienced rapid growth, with Small organising meetings across the country to gain support for the initiative. Within nine months, the organisation attracted 25,000 members, and it was growing by 200 new members every day. The NFSE played an important role in advocating for self-employed individuals, and its influence grew as it gained more members. Over time, the NFSE’s focus expanded to represent the broader interests of small businesses, not just the self-employed.
 

The organisation formally changed its name to the Federation of Small Businesses (FSB) in 1991, reflecting its wider scope of representing small businesses, including those with employees. This shift marked a new phase in the organisation’s growth and allowed it to better serve a larger group of businesses, offering them advocacy and support on a range of issues, such as taxation, business rates, and legal matters.
 

Throughout its history, the FSB has consistently advocated for the interests of small businesses at various levels of government. Its lobbying efforts have led to several key changes in policy. These include the introduction of the Employment Allowance, which allows small businesses to reduce their National Insurance liability, and the creation of small business rates relief. The FSB has also been instrumental in preventing the expansion of VAT thresholds to smaller businesses and has successfully campaigned for government support for small businesses during challenging times, such as during the COVID-19 pandemic.
 

The FSB underwent a significant modernisation programme in 2018, which involved a restructuring of its internal operations. Previously, the organisation was organised into 184 branches across 33 regions, each with its own committee. The modernisation programme replaced this structure with a new election and selection process. The change was aimed at streamlining the organisation’s operations and improving governance. The FSB also introduced a new scrutiny body, which was designed to assess the effectiveness of the Board of Directors and ensure that the strategic direction aligned with the organisation’s core principles.

In 2015, the FSB rebranded itself with a new logo and redesigned its website. This rebranding was part of its broader efforts to modernise the organisation and ensure its relevance in the digital age. Despite these changes, the FSB’s commitment to supporting small businesses and advocating for their interests remained unchanged.
 

Today, the FSB continues to play a vital role in representing the interests of small businesses in the UK. With more than 160,000 members as of 2016, and over 200,000 when including joint, associate, and affiliate members, the FSB remains one of the most influential organisations for small businesses in the UK. It offers a wide range of services to its members, including legal advice, free business banking, and access to a variety of business resources.
 

The FSB also publishes the Small Business Index (SBI), a measure of confidence among small businesses, which is widely cited by the Bank of England and other financial institutions. The organisation is led by National Chair Martin McTague and Chief Executive Officer Julie Lilley, with a Board of Directors overseeing its operations. The FSB also operates several subsidiaries to provide additional services, including FSB Publications, FSB Recruitment, and FSB Sales.

In recent years, the FSB has continued to focus on lobbying for policies that support small businesses. It has campaigned for measures such as business rates relief, improvements in access to finance for small businesses, and more support for digital transformation. Through its advocacy, the FSB has maintained its position as a strong voice for small businesses, helping them navigate challenges and seize opportunities in an ever-changing economic environment.

The Federation of Small Businesses (FSB) was created with a clear goal: to represent and support the interests of small businesses and self-employed individuals across the UK. Established in 1974 as the National Federation of Self Employed (NFSE), the organisation was founded in response to new taxes that impacted self-employed individuals. Its main purpose was to provide a collective voice for these workers, allowing them to work together to address the challenges they faced.
 

As the organisation grew, its focus expanded beyond just self-employed people to include small businesses with fewer than 250 employees. This shift in focus led to the rebranding of the organisation to the Federation of Small Businesses (FSB) in 1991. The FSB's goal became broader, aiming to help small businesses thrive by advocating for their needs in a range of areas, such as tax policies, business rates, and legal advice.
 

One of the core purposes of the FSB is to lobby for small businesses at different levels of government. Over the years, the FSB has campaigned for policies that support small firms, such as the introduction of Employment Allowance, which helps businesses lower their National Insurance costs. The FSB has also worked to create small business rates relief, a policy that helps reduce costs for small business owners. These efforts have made a significant difference, especially when small businesses face challenges like economic downturns or global crises.
 

Additionally, the FSB provides valuable services to its members. These include access to legal advice, free business banking, and a range of other resources designed to support small businesses in their day-to-day operations. The FSB’s mission is to empower small businesses with the tools and advocacy they need to succeed, ensuring that their voices are heard in government and providing them with practical support to grow and overcome challenges.

The Federation of Small Businesses (FSB) plays a pivotal role in advocating for the interests of the self-employed and small business owners across the UK. Through its grassroots campaigning efforts, the FSB aims to promote and protect the rights of small businesses, offering them the support and guidance they need to succeed in today's competitive market.

With a focus on influencing critical policy decisions in government, the FSB provides specialist advice and guidance on various topics, including HR, insurance, and financial management. Additionally, the organisation hosts virtual events tailored to the needs of small business owners and sole traders, fostering networking opportunities and knowledge-sharing within the community.
 

Over the years, the FSB has achieved significant milestones in its advocacy efforts, securing policy changes that directly benefit small businesses. Examples include securing a reduction in business rates, freezing the VAT threshold and fuel duty, and advocating for reforms to address late payments to small businesses. The FSB's successful campaign to exclude small businesses from the IR35 extension and its efforts to secure funding for the Future High Street Fund demonstrate its commitment to supporting the growth and sustainability of small enterprises.
 

The benefits of joining the FSB extend beyond policy advocacy, encompassing a range of practical support services designed to assist small business owners in navigating challenges outside their expertise. Members gain access to legal, tax, and HR expertise, as well as financial products and support. 

From protection in the event of a tax inspection to advice on legal and HR matters, FSB members benefit from a comprehensive package of services tailored to their needs. Moreover, the FSB provides opportunities for local networking and business banking, enabling members to connect with peers, share insights, and access valuable resources for business growth and development.
 

FSB Awards: The FSB Awards recognise and celebrate the outstanding achievements of small businesses across the UK, highlighting their innovation, resilience, and contribution to the economy. These prestigious awards honour businesses of all sizes and sectors, from sole traders to established enterprises, acknowledging their commitment to excellence and entrepreneurial spirit. 


With categories ranging from Best Small Business to Young Entrepreneur of the Year, the FSB Awards provide a platform for businesses to showcase their successes and gain recognition within their communities and beyond. Winners of the FSB Awards receive valuable publicity and exposure, helping to raise their profile and attract new customers.