The government has been aiming to reduce the number of regulations that hold back businesses from developing while protecting both workers and the public alike. Therefore knowing and appreciating your legal obligations as a business owner is paramount for any business to successfully and legitimately function. Business law applies to even the smallest of companies so having an understanding of your responsibility is important to avoid any unnecessary lawsuits or potential fines after all it’s what will build the foundations of a successful and viable business.
So what are the challenges and how can they be overcome? There are a couple of main challenges that need to be looked at when embarking on business law training. Firstly a business owner needs to understand the law and the issues that surround their specific business. Secondly they need training in this, and something that is not too dry and complicated that cannot be understood, after all a business manager is not a lawyer.
The regulations that are set by the government for any business are there to both protect the public and the workers from any safety risks. The government want companies to reach their potential but also want to prevent any risks becoming serious or threatening problems to others. In “The Policy paper” – 2010 to 2015: company law reform” it firmly states that they want “to reduce the number of unnecessary regulations that hold back businesses while ensuring that both workers and the public are protected.”
They outlined the actions that they were going to undertake namely to simplify accounting procedures and auditing for smaller companies. They also stipulated that negotiations with the European Union would take place so that accounting practices and regulations could became more business friendly. The paper outlined that “Small companies face disproportionally high costs in both money and resources for statutory auditing. This can be a major obstruction to their growth. The government wants to reduce this burden on small businesses by increasing the number that are exempt from statutory auditing.”
You will need to find someone with the right experience to explain and train you and your workforce in these laws. Some lawyers will give workshops and training to their clients, others will be able to advise or point you in the right direction. Local government and entrepreneurship schemes can also provide elements of basic training in legal practice. It is however the smallest business that can face the highest costs when it comes to complying with regulations, therefore having this knowledge will reduce the risk of anything going wrong for your company.
Adopting a policy of “think small first” by the European Commission has meant that small and medium enterprises have more exemptions or lighter regulations than the big players. The purpose behind the strategy is to make running a business more streamlined and simple for the micro enterprise, allowing small business the potential to flourish into larger sustainable enterprises. Understanding the law will keep these boundaries in place for your company.
By Harry Price
Harry Price is a freelance writer. He spends his free time doing all the things he loves. Travelling, Cooking, Running and Rockclimbing. Not all at the same time tho!