According to the Federation of Small Businesses, there is a 'considerable failure' among British legal services providers to adequately meet the needs of small businesses. The lobby group, which boasts around 200,000 members, has argued that small businesses face numerous obstacles to obtaining professional legal advice, as well as multiple risks and challenges in evaluating the quality of the advice they receive.
The FSB has welcomed a CMA investigation into the market as 'a first step along the road to a better commercial legal services sector fit for purpose for small businesses.' According to the lobby group, risk and uncertainty inhibit many small business from seeking formal legal advice. Instead, many rely on informal advice or opt to resolve problems themselves by relying on existing 'trusted partners', such as their accountants.
Steep costs, complexity and uncertainty around time commitments can also put small businesses off. For those who decide to push ahead with obtaining external legal help, it can be difficult to '[evaluate] the quality and range of legal services providers available and to identify and choose the very best options,' says the lobby. Sufficient quality control tools and complaint mechanisms are also lacking, it argues.
'The sector is lacking in many of the elements of a mature market including the provision of clear, usable comparative data for consumers about value for money, specialisation etc,' says the FSB. 'It is time consuming for a business owner to have to go through numerous initial consultations just to compare prices.'
Source: Legal Futures
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