The Federation of Small Businesses

The Federation of Small Businesses (FSB), originally founded as the National Federation of the Self-Employed (NFSE) in 1974, has its roots in Blackpool and a response to government tax changes. The organisation was created by Norman Small in Lytham St Annes as a direct reaction to the introduction of the Class 4 National Insurance contributions, which added extra taxes on the self-employed and small business owners. Small invited affected individuals to a meeting in his hometown, where he proposed the creation of an organisation to represent self-employed workers and sole traders. This meeting was the beginning of a movement that grew rapidly—within nine months, the NFSE boasted 25,000 members, with 200 new members joining daily. The NFSE rebranded to the Federation of Small Businesses (FSB) in 1991, reflecting its broader representation of small and medium-sized businesses in the UK. The organisation is a non-party political, member-led, not-for-profit body, committed to lobbying on behalf of small businesses, the self-employed, and sole traders at national, local, and devolved government levels. It provides various benefits to members, including 24-hour legal advice and access to free business banking services.

At its peak, the FSB had 184 branches across the UK, organised into 33 regions, each with its own committee. These branches worked together through a national committee made up of representatives from each region. In 2018, FSB underwent a major modernisation initiative, restructuring its volunteer structure. The organisation moved away from elected Branches and Regions and introduced a new election and selection process to refine its leadership. In 2021, the FSB created a Scrutiny Body, made up of members selected through an independent process, to monitor and assess the performance and effectiveness of the Board of Directors. This new body ensures that the strategic direction of the FSB aligns with the organisation’s principles and objectives as set out in its constitution. The FSB’s national headquarters remains in Blackpool, continuing to serve as the base for the organisation’s ongoing advocacy work for the small business community across the UK.

Norman Small, Founder of the Federation of Small Businesses