Future Views
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2
 min read

Just 10% of 5.6m Small Businesses in UK Use a Lawyer. Technology Can Help.

Few SMEs engage legal support when they have problems, yet expert advice can be crucial. A new paradigm to access law could be the answer.

It's striking to note that only 10% of small businesses in the UK engage a solicitor for legal issues. The reluctance to use lawyers is the same for individuals: 70% of them handle their legal work independently. There's a pervasive reluctance or inability to access professional legal support (SRA, 2024). The legal landscape favours the well-funded, leaving a vast "legal gap" for small and medium enterprises (SMEs).

The Problem: A Daunting Legal Gap

The statistics paint a stark picture: two-fifths of SMEs view the legal system as biased towards larger entities, potentially leaving up to 2.4 million SMEs in a precarious position. The top legal needs for these businesses—contracts, employment law, debt recovery, health and safety, and business formation—are areas where expert advice can be crucial. Yet, nearly half of small business owners feel the sector does not cater to their needs (SRA, 2024).

This sentiment is echoed by experts like Anna Bradley of the SRA and Chris Gorst of Nesta Challenges, who emphasize the critical role of legal support in business success and the troubling access disparity. "Small businesses are the lifeblood of our economy. From helping complete a new lease to taking on the first member of staff, sound legal advice is crucial if businesses are to succeed. But it's clear that too many small businesses struggle to access the legal support they need.”

The Opportunity: Bridging the Gap with Technology

Therein lies an unprecedented opportunity for platforms like GitLaw. By offering 100% free legal document templates and AI-powered tools to demystify legal processes, these platforms can significantly reduce the barriers to obtaining legal support. The digital transformation in legal services is not just a necessity but a growing preference among SMEs, with 45% expressing openness to using digital solutions for legal issues (SRA, 2019).

Moreover, the demand for technological solutions extends beyond SMEs. Larger organizations, grappling with heavy workloads and shrinking budgets, are increasingly looking towards technology for relief. At companies with in-house legal support, 88% of General Counsels (GCs) said they were under pressure to slash budgets. The 2021 Gartner Report predicts a dramatic shift towards tech-enabled legal departments, with projections of increased spending on technology and a move away from traditional legal staffing models.

A Tech-Enabled Legal Future

The landscape is ripe for disruption. With the majority of small businesses and individuals currently navigating legal matters independently, there's a clear need for accessible, understandable, and affordable legal services. Platforms that can offer comprehensive, user-friendly legal assistance stand to not only fill the existing legal gap but also transform the way legal support is delivered and accessed. As we move forward, technology will undoubtedly play a pivotal role in democratizing legal services, making it imperative for businesses of all sizes to embrace digital solutions.

Just 10% of 5.6m Small Businesses in UK Use a Lawyer. Technology Can Help.
Nick Holzherr
Verified writer
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