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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jurisdictions"(Neupert"et"al."2006)."And"always,"import"and"export"raises"excise"<br />
and"other"tax"issues.""<br />
" <strong>Small</strong>"business"research"has"often"drawn"attention"to"the"role"of"service"<br />
and" product" innovation" in" growth," through" increasing" competitiveness" and"<br />
profitability" as" well" as" facilitating" exporting" (Higón" and" Driffield" 2011, Porter,"<br />
1985;"Eisenhardt"and"Tabrizi,"1995)."However,"maintaining"and"protecting"niche"<br />
products" and" services" involves" an" array" of" legal" issues." As" indicated" earlier,"<br />
products" and" services" may" require" patenting," trade" marking," copyrighting" and"<br />
other" formalisation" of" intellectual" property" rights" (Hall" et" al." 2003)." <strong>The</strong>" more"<br />
that"businesses"utilise"intellectual"property,"the"more"they"are"open"to"disputes"<br />
concerning" the" property" rights" of" others." Complex" intellectual" property" issues"<br />
can"also"arise"when"businesses"collaborate."This"has"particular"relevance"in"the"<br />
case"of"small"businesses,"which"may"have"a"particular"need"to"liaise"with"other"<br />
organisations"in"seeking"to"grow"(McAdam"and"Marlow"2007).""<br />
Growth"may"also"be"sought"through"marketing,"which"is"again"associated"<br />
with" various" types" of" justiciable" issue," from" data" protection" to" advertising"<br />
standards."<br />
" Finally," growth" will" sometimes" act" as" a" trigger" for" change" in" business"<br />
structure"or"ownership."While"this"could"involve"anything"from"incorporation"to"<br />
an"expansion"of"the"ownership"base"though"investment,"all"such"change"will"raise"<br />
legal"issues.""<br />
'<br />
Sale,'Contraction'and'Termination'<br />
<strong>Small</strong>"firms,"which"are"innovative"and"high]growth"are"often"purchased"by"larger"<br />
firms"to"access"products"and"technology"and"to"substitute"for"the"acquirers’"lack"<br />
of"‘intrapreneurship’"(Cosh"and"Hughes"1994;"Foreman]Peck"and"Nicholls"2008)."<br />
<strong>The</strong>" sale" of" such" businesses" inevitably" involves" (often" complex)" contractual"<br />
arrangements,"relating"to"issues"such"as"ownership"of"assets,"future"involvement"<br />
of"original"owners,"the"division"of"future"profits"and"competition"(e.g."Bruce"and"<br />
Picard"2006)."<strong>The</strong>"sale"of"businesses"also"raises"tax"related"issues,"all"of"which"<br />
have"a"legal"dimension."<br />
" Aside"from"the"sale"of"growing"businesses,"all"businesses"will"be"passed"<br />
on" by" their" owners," or" cease" to" exist" at" some" stage," and" again" this" inevitably"<br />
involves" legal" issues" (SBS" 2004;" Martin" 2005)." More" traditional" businesses,"<br />
particularly"family"businesses,"often"face"a"more"complex"succession"process,"if"<br />
passing"a"large"share"of"the"business"to"other"family"members."<strong>Legal</strong>"issues"can"<br />
often"be"complicated"by"the"conflation"of"family"and"business"relationships"(Lee"<br />
et"al."2003).""<br />
In"the"event"of"business"failure,"bankruptcy"and"liquidation"clearly"have"a"<br />
heavy" legal" dimension." However," more" generally," as" businesses" contract" (or"<br />
restructure)," they" can" encounter" a" range" of" justiciable" issues" around," for"<br />
example,"debt"(including"insolvency),"employment"(e.g."redundancies),"property"<br />
(e.g." termination" of" leases)," and" breach" of" commercial" and" consumer" contracts"<br />
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