Small Business Framework - Research - The Legal Services Board
Small Business Framework - Research - The Legal Services Board
Small Business Framework - Research - The Legal Services Board
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states." Consequently," as" Levie" and" Hay" (1998," p.25)" concluded" in" their" earlier"<br />
review," the" “organismic" paradigm”" is" largely" at" odds" with" “disconfirming"<br />
empirical"evidence.”"<strong>The</strong>"life"cycle"metaphor"is"therefore"not"necessarily"useful"to"<br />
SME"research"(Orser"et"al."2000)."<br />
" That" is" not" to" say" that" particular" types" of" change" in" the" structure,"<br />
relationships"or"activities"of"businesses"are"not"associated"with"particular"issues"<br />
and"problems,"or"that,"more"generally,"a"participation"theory"based"analysis"of"<br />
issues" and" problems" is" inappropriate." Rather," it" is" to" suggest" that" a" situational"<br />
rather" than" an" organismic" framework" is" more" apt" to" business" classification." In"<br />
terms" of" growth," a" focus" on" what" Phelps" et" al." (borrowing" Gladwell’s" (2000)"<br />
terminology)" described" as" “tipping" points" …" [that]" must" be" successfully"<br />
addressed" if" growth" is" to" continue" …" make[s]" no" assumptions" of" linearity,"<br />
predictability"or"sequence”"(p.13).""<br />
So,"the"justiciable"issues"and"problems"that"small"businesses"face"might"be"<br />
expected"to"link"more"to"their"structure,"activities,"transitions"and"proximity"to"<br />
tipping"points"than"their"age,"origins"or"ultimate"destiny.""<br />
"<br />
<strong>Small</strong>!<strong>Business</strong>!and!Justiciable!Issues!<br />
Formation'and'Normal'Operations'<br />
Even"before"businesses"form,"complex"legal"issues"can"be"involved"in"decisions"<br />
around" such" things" as" business" structure," ownership" and" funding." Formation"<br />
itself"is"wrapped"up"with"legal"reporting"requirements,"and"brings"with"it"a"host"<br />
of" legal" responsibilities." And" then," beyond" that," once" businesses" commence"<br />
trading,"almost"all"aspects"of"their"operation"will"involve"justiciable"issues"which"<br />
could"give"rise"to"justiciable"problems.""<br />
At" the" heart" of" business," the" provision" and" procurement" of" goods" and"<br />
services" involves" contracts" that" give" rise" to" legal" rights" and" obligations."<br />
<strong>Business</strong>es"also"often"sell"goods"or"services"through"trade"credit,"but" are"often"<br />
negatively"affected"by"late"payment"from"customers"(Chittenden"and"Bragg"1997,"<br />
Peel"et"al."2000)."This"can"often"have"knock]on"effects"on"cash]flow,"affecting"the"<br />
payment" of" affected" businesses" to" suppliers." Larger," more" resourced" firms" are"<br />
dominant"in"business"relationships"and"can"delay"payments,"although"business"<br />
credit"is"important,"as"its"extension"to"customers"can"help"capture"market"share"<br />
and"improve"customer"retention"(Chittenden"and"Bragg"1997)."Wherever"goods"<br />
or" services" are" procured" or" provided," the" potential" for" negligence" also" exists,"<br />
which"links"to"justiciable"issues"around"insurance,"from"legal"risk]management"<br />
(e.g." professional" indemnity" insurance," legal" expenses" insurance)" to" disputes"<br />
around"insurance"claims.""<br />
Goods" and" services" must" also" be" produced" and" provided" in" accordance"<br />
with"often"complex"and"wide]ranging"regulations,"whether"set"out"in"legislation"<br />
or"by"regulating"authorities"(such"as"the"Financial"<strong>Services</strong>"Authority).""<br />
Also" associated" with" goods" and" services," justiciable" issues" may" arise" in"<br />
relation" to" the" protection" of" intellectual" property," including" brand" names,"<br />
! 9!