The Federation of Small Businesses (FSB) has welcomed the appointment of Stephen Timms as the small business minister.
Mr Timms will join the Department for Business, Enterprise and Regulatory Reform, something the FSB believes will benefit small businesses.
"We look forward to working with him [Mr Timms] to improve the regulatory environment for small businesses and highlight their concerns across government," said John Walker, FSB national policy chairman.
He added that if the new department "does what it says on the tin in terms of regulation", then the UK as well as small businesses will gain.
Mr Walker is also looking to Mr Timms' experience at the Treasury to come into play, especially in matters concerning tax and the Budget.
The FSB has some 205,000 members and is Britain's biggest business organisation.
Mr Timms was previously chief secretary to the Treasury, appointed to the role in May 2006, according to the minister's website.