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The costs, benefits and implications of BS5750/ISO9000 certification for small and medium‐sized firms are investigated on the basis of a review of published literature and a survey of the actual experience of a representative sample of firms. The principle motivation for installing BS5750‐based quality systems appears to be customer pressure; retaining existing customers is a key benefit. A minority of firms discover that “internal” benefits, such as greater control and discipline, turn out to be more valuable. Developing and installing a BS5750‐based system is a major exercise for small firms but through reductions in quality costs, the costs of certification can typically be recovered within three years of commencing to operate the system. The attitude of the chief executive is a key determinant of effectiveness.

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