C. Edwin Gaw, 67, a founder of General Business Services Inc., a firm that counsels small businesses on general management and financial matters, died Sunday at Johns Hospkins University Hospital. He had been suffering from cancer.

Mr. Gaw, who lived in Silver Spring, and Bernard S. Browning organized General Business Services in 1962. The company now has representatives in all 50 states. Mr. Gaw moved to the Washington area to help set up the business. He as executive vice president until he retired a year ago for reasons of health. He had remained as a consultant since then.

Mr. Gaw was born in Greeley, Colo., and grew up in St. Joseph, Mo. He graduated from Kansas State University and taught school in Kansas until 1940, when he joined the Quaker Oats company in Chicago. He helped promote the company's "Aunt Jemima" pancake mix and was the first person admitted to its "Aunt Jemima Hall of Fame." Mr. Gaw resigned from Quaker Oats in 1959 and ran a tax franchise business in Harrisburg, Pa., before moving to this area.

In addition to his business activities here, Mr. Gaw lectured at the University of Maryland, the Defense Department and the International Franchise Association on management and franchising problems.

He served in the Navy during World War II and commanded a transport ship in both the Atlantic and Pacific theaters.

Mr. Gaw was a member of the Lions Club, the Shrine, the Vice Presidents Club and the Jesters. He was a 32nd Degree Mason.

Survivors include his wife, Ruth, of the home in Silver Spring; two daughters, Sally Stassen, of Chicago, and Mary Jo Frug, of Philadelphia, and four grandchildren.

The family suggests that expressions of sympathy be in the form of contributions to the GBS Scholarship Fund, 51 Monroe St., Rockville, 20850, or to a charity of one's choice.