Small Business Framework - Research - The Legal Services Board

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Summary"and"Recommendations"
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This" report" sets" out" a" framework" for" benchmarking" small" business" consumers’"
need"for"and"use"of"legal"services."The"framework"is"grounded"in"the"tradition"of"
‘legal"need’"surveys"that"originated"in"the"United"States’"recession"of"the"1930s."
These" surveys" have" become" increasingly" sophisticated" and" used" around" the"
world."However,"only"two"recent"legal"need"studies"have"focused"on"the"business"
experience"of"law."
" There"are"4.5"million"businesses"in"the"UK,"of"which"the"vast"majority"are"
small."Indeed,"74%"of"all"enterprises"have"no"employees."There"is"no"single"or"
legal" definition" of" small" businesses" or" SMEs," with" definitions" varying" between"
different"organisations"that"collect"data"on"businesses,"whether"they"are"private"
sector"organisations,"government"agencies,"or"transnational"bodies,"such"as"the"
EU"(EU)."A"key"definition"and"segmentation"was"provided"by"the"EU"in"1996,"and"
subsequently"updated"in"2003."This"forms"the"basis"for"the"current"BIS"definition"
and" segmentation," which" sees" SMEs" simply" divided" into" those" with" up" to" 9"
employees,"those"with"between"10"and"49"employees,"and"those"with"between"
50"and"249"employees."
Recommendation!1!
The"BIS"definition"and"segmentation"should"be"adopted"for"the"purpose"of"the"
Legal"Services"Board’s"benchmarking"of"small"business"consumer’s"need"for"
and"use"of"legal"services."Definitions"should"apply"to"businesses"as"a"whole,"
not"branches,"plants"or"subsidiaries.!
Single]person" businesses" make" up" a" significant" proportion" of" all"
enterprises" and" are" likely" to" be" among" the" least" sophisticated" in" their"
understanding"of"the"legal"and"regulatory"framework"within"which"the"operate,"
as"well"the"least"able"to"independently"deal"with"adverse"justiciable"issues."
Recommendation!2!
Data" collection" for" any" benchmarking" should" be" designed" so" that" single]
person"businesses"can"be"distinguished"from"other"micro"businesses."
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Owing"to"the"particular"situation"of"micro"businesses"and"the"additional"
methodological" challenges" attach" to" the" collection" of" comprehensive" data" from"
larger"organisations,"an"initial"focus"on"micro"businesses"would"be"prudent."
Recommendation!3!
Initial" research" should" focus" on" micro" businesses," with" larger" businesses"
being"incorporated"as"the"research"tools"are"proved"and"developed."
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