Small Business Framework - Research - The Legal Services Board
Small Business Framework - Research - The Legal Services Board
Small Business Framework - Research - The Legal Services Board
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
<strong>The</strong>re"is"an"extensive"literature"concerned"with"describing"and"predicting"<br />
the"issues"and"problems"that"businesses"face."While"analysis"is"often"predicated"<br />
on"an"a"view"that"businesses"have"a"typical"life"cycle,"a"situational"rather"than"an"<br />
organismic"framework"is"more"apt"to"an"understanding"of"the"legal"issues"that"<br />
small"businesses"face."<strong>The</strong>"justiciable"issues"and"problems"that"small"businesses"<br />
face"might"be"expected"to"link"more"to"their"structure,"activities,"transitions"and"<br />
proximity"to"tipping"points"than"their"age,"origins"or"ultimate"destiny."<br />
Even" before" businesses" form," complex" legal" issues" can" be" involved" in"<br />
decisions" around" such" things" as" business" structure," ownership" and" funding."<br />
Formation" itself" is" wrapped" up" with" legal" reporting" requirements," and" brings"<br />
with" it" a" host" of" legal" responsibilities." And" then," beyond" that," once" businesses"<br />
commence"trading,"almost"all"aspects"of"their"operation"will"involve"justiciable"<br />
issues"that"could"give"rise"to"justiciable"problems."<br />
Most"small"businesses"do"not"seek"growth."However,"for"businesses"that"<br />
grow,"both"the"increased"likelihood"of"reaching"tipping"points"and"participation"<br />
theory" suggest" that" an" increase" in" exposure" to" justiciable" issues" and" problems"<br />
will"follow."<br />
Past" surveys" of" legal" need" provide" an" indication" of" the" incidence" of"<br />
justiciable" issues" within" the" small" business" context." <strong>The</strong>" original" Connecticut"<br />
survey" found" that" small" businesses" had" faced" an" average" of" 3" non]contentious"<br />
and" 1" contentious" justiciable" issue" over" the" previous" 12" months." <strong>The</strong>" most"<br />
common" non]contentious" issues" faced" concerned" taxes," property" rental,"<br />
government" permits," insurance" and" loans." Non]payment" for" goods" or" services"<br />
and" disputes" around" delivery" were" the" most" common" contentious" issues,"<br />
accounting"for"more"than"80%"of"disputes."<br />
<strong>The</strong>" 2006" Hong" Kong" survey" found" that" small" and" medium" sized"<br />
businesses"experienced"1.4"difficult]to]solve"problems"over"a"single"year."‘Money"<br />
matters’"(mostly"comprised"of"issues"around"obtaining"money"owed)"were"the"<br />
most" commonly" reported" problems," with" problems" concerning" the" quality" of"<br />
goods"and"employment"issues"also"common."<br />
Again,"the"2007"Dutch"surveys"found"that"problems"concerning"“payment"<br />
for"goods"supplied"or"services”"were"the"most"voluminous."<br />
<strong>The</strong>" recent" AIA" research" for" the" <strong>Legal</strong>" <strong>Services</strong>" <strong>Board</strong>" found" that"<br />
maintaining"cash]flow,"through"obtaining"timely"payment"for"goods"or"services,"<br />
appeared"to"be"“the"biggest"single"issue"…"for"all"small"businesses.”"Tax,"health"<br />
and"safety,"employment"and"contract"issues"were"also"reported"as"common."<br />
A" small" survey" of" trade" bodies" conducted" to" inform" this" project" found"<br />
regulation" and" employment" issues" to" be" of" greatest" concern," with" trading,"<br />
contract"and"health"and"safety"issues"joining"these"as"the"most"common."<br />
" Evidence" from" tribunals" and" courts" supplements" that" provided" by" past"<br />
research." Reflecting" the" prevalence" of" and" concern" about" employment" related"<br />
issues," 218,000" claims" were" made" to" Employment" Tribunals" in" the" 2010]2011"<br />
! 71!