New research has revealed a growing level of scepticism among small businesses when it comes to lawyers providing value for money.
According to figures from the Legal Services Board, the percentage of small businesses that described using a lawyer as ‘cost-effective’ when solving disputes fell by 3 percentage points over the last four years to 11%.
Entitled ‘Legal Needs of Small Businesses 2013-2017’, the report is based on the responses of over 10,500 small business owners and managers, and is the biggest survey to look at how the legal sector interacts with small firms. Where the nature of the business respondents is concerned, small businesses are those with 50 people or fewer.
Conducted by YouGov, the survey found that of those who reported a legal issue, approximately 50% claimed that it led to a negative effect, with legal problems resulting in a total yearly loss of around £40 billion for small businesses.
The research also revealed that respondents were more likely to consult an accountant rather than a lawyer when seeking advice, with under a tenth having a firm on a retainer or employing one in-house.
The report also found that of the businesses with internal legal expertise, wills, probate and trusts was one of the least reported specialisms at just 3%.
For the proportion that claimed that they would go to a lawyer, just over one in five said that they compared firms to get the best value. Half of this proportion described comparing providers as easy.
