BII chief executive Neil Robertson has praised Business Secretary Lord Mandelson for attempting to delay the introduction of the mandatory code of practice.
Last week Mandelson recommended a clear out of anti-business measures - including the code - until at least 2011 because of the recession.
Robertson, who has previously worked in the government's Department for Innovation, Universities and Skills, wrote to Mandelson this week.
The letter states: "I have listened to many a plea for help from our members - who run pubs, bars, hotels and restaurants throughout the UK - as they faced the prospect of yet more unnecessary bureaucracy in the form of the mandatory code of practice for alcohol retailers.
"These small businesses that are so vital to the economic and social fabric of our country were already struggling under the weight of recent legislation, considerable increases in tax and the pressures of the challenging financial climate. The thought of further harsh measures was proving too much for some.
"By intervening to suggest even a delay in the implementation of the mandatory code aspect of the Policing and Crime Bill, you have gone a long way to saving the livelihoods of some small business owners and helped a large section of the UK hospitality industry to survive."
The code, which has been roundly slammed in the trade, includes measures such as banning irresponsible promotions, forcing pubs to offer free tap water and introducing smaller wine glass measures.
It still working its way through Parliament and is due to be debated in the House of Lords next month.
Earlier this week health lobbyists urged the government to press ahead with plans for the code and the Home Office has not indicated if it will accept Mandelson's recommendation.
In the letter Robertson goes on to discuss a link up between the BII's awarding body and Business Link offices which he says has helped pub tenants and lessees secure training.
"These qualifications furnish licensees with tools to aid their professional development and run leaner, fitter, more responsible and ultimately more successful businesses," he said.