65 FSB Small creative firms know their days do not unfold in neat office blocks. Their work is shaped by the ebb and flow of orders, design deadlines, shows, seasonal peaks and the practical realities of making – but wider system continues to treat them as if they run on fixed shifts. The realities of this are laid bare in a new report by the Federation of Small Businesses (FSB). Creating Change highlights that 51 per cent of creative businesses are self-employed or freelance. They are juggling fluctuating workloads, irregular income and the pressure of studio-based creation, but the rules they must work within still assume predictable monthly salaries. This has to change. FSB is calling for the Universal Credit start-up period to be extended to two years – something 20 per cent of small firms say would improve their ability to start or grow – and for tax rules that allow self-employed creatives to spread their liabilities over a three-year average. Without that, the system will continue to pull against the very people it should be supporting. Workspace is another concern. A recent Valuation Office Agency change risks stripping firms in shared studios of the rate relief that keeps these hubs functioning. For businesses that rely on specialist tools and consistent studio access, secure and affordable space is essential. AI is reshaping the landscape, bringing possibilities and pressure in equal measure. While 75 per cent of creative businesses see advantages in using it, 30 per cent are worried about misuse of their intellectual property and 17 per cent fear the long-term impact on their business. Creators are right to seek clarity. FSB proposes watermarking AI-generated content, a legal right over personal voice and image, and firm enforcement when original work is misused. Together, these issues shape whether a small firm can plan ahead, stay in the studio that anchors their work, access support, invest in equipment, or simply get paid on time. Creative businesses continue to adapt with speed and ingenuity. It is now time for the rules around them to catch up. Tina McKenzie, FSB Policy Chair’s, looks at how the wider system needs to change for small creative firms to allow their way of working to flourish CREATING CHANGE ABOUT FSB As the UK’s business support group, FSB is the voice of the UK’s small businesses and the self-employed. Established over 40 years ago to help its members succeed in business, FSB is a non-profit making and non-party political organisation that’s led by its members, for its members. As the UK’s leading business campaigner, FSB is focused on delivering change which supports smaller businesses to grow and succeed. FSB offers members a wide range of vital business services, including access to finance, business banking, legal advice and support along with a powerful voice in Government. Each year FSB also runs the UK’s Celebrating Small Business Awards. More information is available at www.fsb.org.uk. You can follow us on twitter @fsb_policy and on Instagram @fsb_uk.
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