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(The Birmingham Post Via Thomson Dialog NewsEdge) Small business makes up the bedrock of the UK economy, but it has never been harder to run one.
Industry giants like Dyson and Virgin may have started out as small businesses, but the impact of business crime, or the latest raft of regulations from Brussels, are taking their toll on the SME sector.
Which is why the Federation of Small Businesses (FSB), the biggest business organisation in the UK, is on hand to fight their corner.
With 200,000 members, from dentists to taxi drivers, small manufacturers to lawyers, the FSB represents the interests of small firms locally, nationally and internationally.
It has grown ever since it was established in 1974, and represents businesses with less than 100 employees.
Mike Cherry, chairman of the West Midlands Policy Unit of the FSB, said: "Between 12 and 13 million people work in the small and medium enterprise (SME) sector and account for about 50 per cent of UK GDP.
"Growing from a small to a medium-sized firm is very difficult, as is getting a product to market."
Mr Cherry, who runs a giftware manufacturing business in Burton, said access to finance was a particularly tough area for small businesses.
The FSB is now contributing to an inquiry by the Office of Fair Trading into bank charges on small businesses, which it believes are disproportionate and discourages growth.
"Our members are on the frontline and are experiencing these problems all the time, so their input will be invaluable."
The organisation is also lobbying against business crime - by calling for a Key Performance Indicator on the police for business crime.
At present there is no set definition for business crime, although Mr Cherry favours the one adopted by Warwickshire Police as part of a pilot scheme which says: 'Any crime against a business, or on a business premises."
Across the West Midlands it is estimated that the cost of business crime is at least pounds 123 million, while it is estimated to be at least a quarter of all offences.
Mr Cherry said: "Without a definition or KPI it is harder for business crime to be recorded properly and dealt with accordingly.
"If something is measured, and targets set, the police will hopefully ensure there are adequate resources to deal with the problem.
"This impacts on business enormously, and has forced some firms to actually close. Business crime is not victim-less and does not simply mean we can make a claim against our insurers.
"It has a disproportionate effect on the area where a business is. Small companies are part and parcel of a local community - they don't up sticks and go somewhere else when the going gets tough."
The FSB is currently working with the other members of the West Midlands Regional Business Crime Forum (WMRBCF), the Association of Chief Police Officers (ACPO), Trading Standards and others on specific issues within business crime.
Manufacturing is another key area for the FSB lobbying campaign, which has seen the organisation invite MPs to spend a day at a small firm to see for themselves what they are up against.
"We feel that manufacturing is alive and well in the Midlands," said Mr Cherry. "But I think there is too much emphasis on start-ups.
"There should be more support on companies that need to grow more steadily or diversify."
The FSB is now involved in ongoing discussions with Advantage West Midlands and other business organisations to ensure the manufacturing case is put forward to government.
"It has become harder to run a small business. The explosion in rules, red tape, codes of practice etc, means it is virtually impossible to find the necessary time to run a small business."
Mr Cherry said the substantial increases in the cost of energy as well as raw material price hikes were also making it more difficult for firms to operate, since it was virtually impossible to pass these increases on to customers.
"There are often no margins left."
Through its lobbying at government level, the FSB is campaigning against a return to locally set business rates as well as inflation busting rises in the minimum wage.
It latest 'Lifting the Barriers' survey has clearly identified certain sectors and regions where this is having an adverse impact.
The FSB has been surveying its whole membership every two years since 2000.
The research which is carried out by the University of Strathclyde and University of Stirling is recognised for its scale and is increasing used by many government departments.
The main survey is used to produce further more in-depth series of reports, which are distributed to MPs and other decision makers.
Mr Cherry said: "Our members can rest assured the FSB is working hard on their behalf to make sure the voice of small business is heard.
"We are the biggest business organisation in the UK and we understand their problems.
"Small business is so often ignored, and there is too often a serious lack of understanding. I always say that we need to engage more with the decision makers so they understand better how their decisions can adversely affect the small business community.
"This is more important than ever. Too often in local councils, local politicians and MPs have a serious lack of business knowledge.
"We are trying to overcome this with the challenge to MPs to spend a day with local business. We look forward to their positive response."
Copyright 2006 Birmingham Post & Mail Ltd.
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