Environment, Food and Rural Affairs CommitteeWritten evidence submitted by Federation of Small Businesses (FSB)

The Federation of Small Businesses (FSB) is the UK’s leading business organisation. It exists to protect and promote the interests of the self-employed and all those who run their own business. We welcome the opportunity to respond to your call for evidence.

Small businesses make up 99.3% of all businesses in the UK, and make a huge contribution to the UK economy. They contribute 51% of the GDP and employ 58% of the private sector workforce.

If they are given the right incentives, small rural businesses can also make an enormous contribution to our rural economy. But as our recent report “The Missing Links—Revitalising our rural economy” sets out, that potential is not currently being realised for a variety of reasons. The attached report, which I hope you will find useful when considering your policy proposals, include a number of policy recommendations to realise small businesses’ potential.

In answer to your Committee’s question about policy priorities we generally agree with those set out by Government (being housing, broadband services, transport and fuel). But our report also stresses planning as a key component in the growth mix and it should be considered too. A genuinely simplified planning regime will encourage small businesses to diversify, which in turn will help them grow and prosper.

We would further identify local government procurement as a major driver for growth in rural areas. Our recent report “Local Procurement—Making the most of small businesses” launched in July surveyed local authorities across the UK. It looked at how they used procurement spend in relation to small business.

While the report finds many instances of good practice, there is much to be done to widen the benefits across all local authorities. The FSB has come forward with a series of recommendations how to achieve that, and once again I attach our report and hope you find it useful.

September 2012