More than a third of small businesses have experienced at least one legal issue in the previous year, according to the Legal Services Board (LSB) Small Business Legal Needs Survey
Those with legal problems faced an average of 2.8 issues each, which suggests a collective 16 million legal issues across England and Wales. Of these, 40% ended up costing the business more than £5,000, and 10% cost more than £15,000.
Common problems included late payments and delivery or service disputes. Many businesses struggled to identify sources of help or delayed until the problem escalated.
LSB chief executive Richard Orpin urged the government to do more to help small businesses access legal advice.
Law Society president Brett Dixon said ‘clear signposting and effective referral routes’ were ‘essential to help businesses access the legal expertise they need’.
