The report, ‘Is the Future Small?’,
published this week by LexisNexis UK, reveals a thriving small law firm sector
with a bright future. The percentage of solicitors at small firms who
previously worked at medium to top tier practices has risen from 53% in 2016 to
64% in 2019.
Currently, small law firms make up
the bulk of the legal market, with 95% of firms earning less than £500,000 and
50% earning less than £150,000.
Nine out of ten solicitors surveyed
for the report said the benefits of working in a small firm tend to be generally
‘advantageous’, citing the ability to remain in control (82%), a better client
experience (79%), and swift decision making (76%) as the main draws.
Fewer than one in five want to work
for a large firm. The rest were fairly evenly split between preferring a small
or solo outfit (fewer than 20 fee earners) and a medium-sized firm for their
next role.
Small is not always beautiful,
however. Three-quarters of those surveyed felt some clients could perceive
small firms as lacking in credibility, while 82% of solicitors in small firms
worry that a lack of capacity could force them to turn good work away. One
quarter of solicitors worried it may be difficult to build a pipeline of future
business at a small firm. Other issues cited include that it’s hard to
succession plan as clients choose the individual solicitor personally, and
increasing compliance regulations.
The research was gathered through
eight in-depth interviews with lawyers in small firms and online surveys
completed by 176 solicitors.
Jon Whittle, market development
director, LexisNexis UK, said: ‘The future is certainly bright for small firms
and an overwhelming number of solicitors working in these organisations believe
that small law is better―from both personal and professional standpoints.
‘While small law firms believe the
benefits of their size outweigh the challenges, these organisations aren’t
dismissive of the challenges they face, which is a good thing. Their
combination of realism, confidence and optimism will likely help them to continue
to thrive.’
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