At a conference on the Small Business Act for Europe, which was organised by the French employers' organisation, the General Confederation of Small and Medium-sized Enterprises (CGPME), and the European Economic and Social Committee, the FPB's Chief Executive, Phil Orford, spoke out on behalf of the FPB's 25,000 members. He stressed the importance of removing the barriers that cause many UK businesses to fail in their first year.

Mr Orford urged the European Commission and the governments of EU member states and to adopt the principle behind ‘Think Smallest First', and protect small firms at the stage of their growth when they are most vulnerable, particularly during the current global economic slowdown.

"We – as organisations representing small businesses across the European Union – have an opportunity to use the Small Business Act for Europe to hold the commission and Member States' governments to their commitments," he told delegates at the conference. "Our members cannot do this by themselves. We have an obligation to support our members by driving a Better Regulation and Simplification Agenda, utilising a number of mechanisms."

Mr Orford added: "One – just one – mechanism is a Small Business Act for Europe, which incorporates a process that takes into account the impact that all regulation will have on small businesses, which, in turn, will provide an element of certainty – so enabling businesses to plan ahead."

Other delegates at the conference included the French Minister for European Affairs, Jean-Pierre Jouvet, and Françoise Le Bail, SME Envoy at the European Commission.

On average, the FPB's members employ just 10 employees. In particular, the FPB wants politicians to consider the smallest businesses first when introducing tax policies and new legislation, which inevitably leads to additional red tape that can strangle small businesses at birth. The Forum believes that the dual burdens of disproportionate taxation and over-regulation must be addressed as a priority.

Other barriers to the survival and growth of small businesses, such as the perennial problem of late payment of suppliers at the hands of larger companies, must also be removed.

According to Business Link, 20% of new businesses fail within their first year, and 50% within their first three years. According to data provider Equifax's latest Business Failures Report, the total number of businesses which failed in the UK went up by 9.1% in the first quarter of 2008, compared to the same period in 2007. The worst affected region was the North West, with a rise of 21.4%.

FPB member Brian Morris owns and runs Data TV, a media consultancy firm based in Cheadle, Cheshire. Mr Morris is backing the FPB's campaign to Think Smallest First.

"When it comes to small businesses, the Government continues to say one thing and then go ahead and do the complete opposite," he said. "We need action and we need it now. That is why I am supporting the FPB's campaign and I hope other small firms will do the same."