Federation of Small Businesses

The Federation of Small Businesses (FSB) is a United Kingdom membership organisation for small-business owners, the self-employed, partners and company directors. It represents firms operating below the organisation’s membership threshold of 250 employees and presents itself as non-party political, member-led and not-for-profit. Its role combines policy advocacy with practical services intended to help smaller enterprises manage legal, financial and operational issues. The organisation was established in 1974 under the name National Federation of Self Employed (NFSE). It adopted the Federation of Small Businesses name in 1991, reflecting a broader remit that included incorporated businesses and other small and medium-sized enterprises alongside sole traders and the self-employed. The organisation is registered at Companies House under the legal name The National Federation of Self Employed & Small Businesses Limited. FSB operates across the United Kingdom and engages with the UK Parliament, devolved administrations, local authorities and other public bodies. Its policy work covers taxation, employment costs, business rates, regulation, late payment, access to finance, skills, infrastructure and the wider trading environment for small firms. The organisation commonly uses surveys and economic analysis to support its submissions and public campaigns. Its Small Business Index is a recurring measure of confidence and trading conditions among smaller firms and has been cited by media and economic-policy institutions. Alongside lobbying, FSB provides membership benefits. These have included a 24-hour legal advice line, business banking arrangements and other forms of guidance, support and member services. Eligibility is generally aimed at people who are self-employed or who own, operate or direct a UK-based business with fewer than 250 employees, subject to the organisation’s code of conduct and other membership conditions. The organisation has also offered categories for joint, associate, retired, connected and pre-start-up members. FSB has claimed a role in securing or supporting measures such as small-business rates relief, employment-allowance arrangements, protections and initiatives addressing late payment, and the expansion of government support for small businesses and self-employed people during the COVID-19 pandemic. These claims form part of its broader identity as a collective voice for firms that may have less direct access to policymakers than large companies. Its internal structure has evolved over time. Before a modernisation programme in 2018, the federation was organised through elected branches and regions, with local committees grouped into a national structure. The 2018 changes introduced a new election and selection process for the volunteer organisation. In 2021, the board established a scrutiny body selected through an independent process to provide assurance to members about the board’s effectiveness and adherence to the organisation’s constitutional principles. FSB remains an active UK business organisation rather than a commercial consumer brand. Its public identity is built around representation, member advocacy, policy research and practical support for entrepreneurs and small employers.

The Federation of Small Businesses traces its origins to 1974, when it was created as the National Federation of Self Employed. Its initial purpose was to provide a collective voice for self-employed people and very small firms in dealings with government and other institutions. Over time, the organisation broadened its membership and policy remit beyond sole traders, reflecting the growing importance of companies, partnerships and other small employers in the UK economy. In 1991, the organisation adopted the name Federation of Small Businesses. The change signalled a wider identity centred on small firms generally rather than self-employment alone. The legal entity retained a name incorporating both descriptions: The National Federation of Self Employed & Small Businesses Limited. Although registered as a company, the federation’s public model is that of a member-led, non-party political and not-for-profit organisation rather than a conventional commercial enterprise. FSB developed a dual role. It became a lobbying body representing small businesses and the self-employed at national, devolved and local levels, while also offering practical benefits to members. Its advocacy has addressed employment costs, taxation, business rates, regulation, access to finance, late payment and the effects of public-policy changes on small employers. The organisation has credited its lobbying with helping to promote small business rates relief, employment-allowance measures and policies intended to prevent the excessive extension of VAT obligations to smaller firms. It has also campaigned for action against late payment by large businesses to small suppliers. The federation’s research function became an important part of its external profile. The FSB Small Business Index tracks confidence and conditions among smaller firms, generating a regular evidence base for policy statements and public commentary. The index has been reported or referenced by UK media and economic-policy audiences, helping FSB frame the experiences of its members in quantitative terms. The organisation also became a prominent advocate for small firms during the COVID-19 pandemic. FSB supported rapid government assistance for businesses and self-employed people, including the Coronavirus Job Retention Scheme, the Self-Employment Income Support Scheme, business-rates relief and grant programmes. Its role was primarily representative and lobbying-based; the organisation sought to identify gaps in support and press for measures that would reach smaller employers and independent workers. Before 2018, FSB’s volunteer governance was organised through 184 branches grouped into 33 regions, with committees at branch, regional and national levels. A modernisation programme beginning in January 2018 altered that model, replacing the previous branch-and-region election arrangements with a new process for election and selection. The reform was intended to update the federation’s member representation and governance arrangements. In 2021, the board appointed a scrutiny body composed of members selected through an independent process. The body was designed to act as a critical friend to the board and to give members assurance that the organisation’s strategic direction remained consistent with its constitution and stated objectives. The FSB later continued its leadership transition under a national chair structure. Martin McTague served as national chair before stepping down in 2026 after appointment to the House of Lords; Tina McKenzie then became interim national chair. FSB’s continuing activities combine membership services, business advice, policy research, public campaigning and representation of small firms throughout the United Kingdom.

• 2026

  Interim national chair appointed

  [1]Federation of Small Businessesen.wikipedia.org

  Tina McKenzie became interim national chair after Martin McTague left the role following his appointment to the House of Lords.

• 2021

  Scrutiny body appointed

  [1]Federation of Small Businessesen.wikipedia.org

  The board created an independently selected member scrutiny body to review governance performance and strategic alignment.

• 2018

  Volunteer structure modernised

  [1]Federation of Small Businessesen.wikipedia.org

  FSB introduced a new election and selection process, replacing its previous elected branch-and-region arrangements.

• 2015

  New organisational logo introduced

  [1]Federation of Small Businessesen.wikipedia.org

  FSB adopted a new logo in November as part of a broader rebranding programme that also included its website.

• 1991

  Adoption of the Federation of Small Businesses name

  [1]Federation of Small Businessesen.wikipedia.org

  The organisation adopted its current public name as its membership and policy remit expanded beyond self-employment.

• 1974

  Organisation founded as the National Federation of Self Employed

  [1]Federation of Small Businessesen.wikipedia.org

  The organisation was established to represent self-employed people and very small businesses in the United Kingdom.

A national, non-party political membership federation that combines collective representation with practical support for UK small businesses and self-employed people.

• Membership organisation

  FSB Membership

  FSB membership is aimed at UK-based self-employed people, business owners, partners and directors of firms with fewer than 250 employees. Members receive access to representation, business guidance, legal support, networking and selected commercial benefits. The federation also lists joint, associate, retired, connected and business-creation categories for people with different relationships to small business.

• Business support service

  24-hour legal advice line

  A round-the-clock legal advice service offered as a membership benefit. It is intended to help small-business owners address employment, contracts, commercial and other operational legal questions without maintaining the same in-house resources as larger companies.

• Economic research

  FSB Small Business Index

  The Small Business Index is FSB’s recurring confidence and conditions survey for smaller firms. It provides an evidence base for the organisation’s policy work and public commentary, and has been cited by UK media and economic-policy audiences.

• Advocacy service

  Policy representation and lobbying

  FSB represents the interests of small firms and self-employed people to UK, devolved and local government. Its policy portfolio includes tax, employment costs, business rates, regulation, late payment, access to finance, skills and emergency business support.

• 2020COVID-19 small-business support campaign

  United Kingdom

  During the COVID-19 crisis, FSB advocated rapid and broad support for small businesses and self-employed people, including furlough, self-employment support, business-rates relief and grants.

  Outcome. The UK government introduced and expanded several emergency support schemes for businesses and independent workers.

  Source
• Employment Allowance advocacy

  United Kingdom

  FSB has attributed a role to its lobbying in the introduction and periodic increases of the Employment Allowance, which reduces eligible small employers’ National Insurance liabilities.

  Outcome. The allowance became a recurring measure relevant to smaller employers.

  Source
• Small business rates relief advocacy

  United Kingdom

  The federation has campaigned for the creation and continuation of business-rates relief designed to reduce property-tax burdens on qualifying small firms.

  Outcome. Small business rates relief became an established policy mechanism.

  Source
• Late-payment campaign

  United Kingdom

  FSB has pressed for legislation and stronger practices to address the widespread late payment of invoices owed by large businesses to small suppliers.

  Outcome. The campaign contributed to continuing public and legislative attention to payment practices affecting small suppliers.

  Source

• 2021

  Creation of a member scrutiny bodyStrategy

  Background

  Following governance modernisation, the organisation sought an additional mechanism for independent member oversight of the board.

  Action taken

  The board appointed a scrutiny body through an independent selection process.

  Aftermath

  The body was tasked with acting as a critical friend and providing assurance about the board’s performance and strategic direction.

  Source

• 2018

  Modernisation of volunteer governanceStrategy

  Background

  FSB’s earlier volunteer system was based on elected branches and regions with local, regional and national committees.

  Action taken

  The board replaced the former structure with a new election and selection process.

  Aftermath

  The federation moved to a revised system for organising member representation and volunteer participation.

  Source

• 2015

  Organisation-wide rebrandingOther

  Background

  FSB decided to refresh its visual identity and digital presence.

  Action taken

  It introduced a new logo in November 2015 and undertook a broader website and brand redesign.

  Aftermath

  The new identity became the federation’s current public branding.

  Reported rebranding cost. £0.3 million (2015 rebranding programme)

  Source

• 1991

  Broadened identity through name changeStrategy

  Background

  The organisation’s original name focused on self-employed people, while its membership and representative role increasingly encompassed small businesses more broadly.

  Action taken

  It adopted the Federation of Small Businesses name while retaining a legal name referring to both self-employed people and small businesses.

  Aftermath

  The new name became the organisation’s principal public identity and reflected its wider policy remit.

  Source

1. 1Federation of Small Businessesen.wikipedia.org
2. 2Federation of Small Businesses official websitefsb.org.uk