The FSB (Federation of Small Businesses) has brought in an academic to add its parcel of practical support to small businesses all through the economic slump, as latest findings show that half of small business owners risk losing everything if their venture fails.

A recent FSB survey has uncovered that 49 per cent of people surveyed out of 8,600 were facing the possibility of losing everything they possessed if their business went under, as small businesses often work out of their homes, therefore tying up the home in with the business.

The man who will bring about some awareness will be Alistair Anderson, a professor and director of the Centre for Entrepreneurship at the Aberdeen Business School, Robert Gordon University.  Anderson will be declared as the FSB’s official Professor of Small Business today at the FSB Nation Council in central London.

Anderson said, ““These worrying findings are yet another example of how small business owners put themselves in the firing line but often without due recognition of what they do for the economy and for society.

“My advice to entrepreneurs and small firm owners in the current climate is: don’t be overwhelmed, take practical steps. The last thing small businesses should do is cut prices through panic. A simple five or 10 per cent reduction in price can lead to an 80 per cent reduction in profits. Keep watching your cash flow, get to know your bank manager and give your customers value in the way that only small businesses can.”

The Federation of Small Business Support’s chairman, Colin Willman, has said, “The FSB is very pleased to welcome Professor Anderson on board at this particularly challenging time for small businesses. We are confident that together we can help the 13.5million people who work in small businesses around the country to help put the UK economy back on track. We look forward to working together with the Professor in the longer term, to enhancing the understanding of policy makers and members of the public about the importance of small firms to the economy and to society in general, and the role they will continue to play in the future.”

Professor Anderson is said to be investigating ways to improve the perception of policy makers and members of the public about the significance of small businesses to the financial system and to society in general, and their position in the future.

Professor Anderson went on to say, “I see my role at the FSB as an academic champion who will add to the understanding and appreciation of the significance of the small business sector; why and how it should be supported. I believe that we can do this by developing a fuller understanding of what it means to be a small business owner.”

It surely isn’t a great state of affairs when owners of small businesses in Britain risk everything as a result of the economic slump.  Small businesses need to be wary over the coming months and to plan ahead so as not to be caught out by potential problems turning into genuine catastrophe.

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