Small Business Framework - Research - The Legal Services Board

financial"year."This"represents"an"average"of"one"claim"per"5"businesses"that"had"
employees."1,231,171"money"claims"were"brought"in"the"County"Court"in"2010."
" Small" businesses" tend" to" have" a" narrower" range" of" internally" available"
skills," relatively" few" prior" encounters" with" justiciable" issues" upon" which" to"
construct" protocols," and" less" scope" to" purchase" specialist" services." The"
informality" of" many" small" business" operations" can" also" result" in" breaches" of"
regulations."Small"businesses"are"also,"more"generally,"known"to"be"resistant"to"
legal" regulations," due" to" the" administrative" burdens" they" impose." This" is"
particularly" apparent" in" respect" of" the" provisions" of" employment" legislation."
There" has" also" been" suggestion" that" sole" traders" are" more" willing" to" take"
calculated"risks"around"adherence"to"regulations."
" A" broad" range" of" legal" advice," representation" and" support" services" is"
available" to" small" businesses." The" most" obvious" type" of" law" related" service"
provider" is" the" solicitors’" firm." However," accountants" are" the" main" source" of"
external"law"related"professional"support"to"small"businesses."Other"legal"service"
providers"include"barristers,"patent"and"trademark"attorneys"(and"agents)"and"
licensed" conveyancers." To" these" must" then" be" added" consultancy" businesses"
providing" law" related" services" in" fields" such" as" employment" and" health" and"
safety," along" with" companies" providing" more" extensive" law" related" support," in"
relation" to" such" things" as" HR" and" payroll" support" and" property" management."
There" are" also" a" great" many" companies" offering" support" for" contentious"
justiciable"issues,"the"most"prominent"of"which"are"debt"collection"and"recovery"
firms."Legal"services"can"also"be"wrapped"up"in"the"services"provided"by"other"
organisations." For" example," business" associations" and" trade" bodies" frequently"
provide"help"in"relation"to"legal"issues"faced"by"member"businesses."A"sizeable"
proportion" even" offer" dedicated" legal" helplines." Then" there" are" chambers" of"
commerce,"local"enterprise"agencies,"Business"Link"and"other"not]for]profit"and"
governmental" organisations" offering" independent" advice" (e.g." ACAS)." And," of"
course," as" with" individuals," businesses" may" choose" to" seek" advice" and" other"
support" of" a" legal" nature" from" many" sources" that" are" not" obviously" able" to"
provide"it."
The" 1997" University" of" Cambridge" Centre" for" Business" Research" (CBR)"
National"Small"and"Medium"Size"Business"Survey"found"that"over"a"3"year"period"
83%" of" SMEs" had" made" use" of" an" accountant," and" 56%" had" made" use" of" a"
solicitor." Growing" firms" were" most" likely" to" have" sought" external" advice," and"
advice" seeking" was" also" linked" to" business" size," with" larger" businesses" more"
likely" to" have" obtained" external" advice." More" recently," the" 2010" BIS" Small"
Business"Survey"found"that"49%"of"SME"employers"had"obtained"external"advice"
within"the"past"12"months,"with"37%"of"SME"employers"obtaining"advice"from"an"
accountant."Lawyers"were"utilised"by"10%"of"SME"employers"overall,"although"
this"figure"varied"considerably"by"sector,"with"17%"of"those"businesses"engaged"
in"‘other"services’"using"lawyers."
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