Legal Services Board reports small businesses lack adequate legal support

A new survey by the Legal Services Board (LSB) reveals that legal issues are acting as a brake on economic growth for small businesses in England and Wales. The research, which surveyed over 10,000 businesses, found that 36% of respondents experienced at least one legal issue in the previous year, equating to approximately 16 million legal issues annually.

Many of these problems, such as late payments and disputes over goods or services, result in significant costs. Four in 10 legal matters exceeded £5,000, while one in ten exceeded £15,000. The report notes that nearly one in five businesses reported that legal issues prevented or delayed investment.

When seeking assistance, small businesses often bypass formal legal professionals. Accountants (26%) and tax or financial advisers (21%) are the most common sources of advice, while only 18% turned to solicitors. The LSB is calling for government and regulatory action to help businesses identify and resolve legal problems more effectively to prevent lost opportunities and stalled growth.