Only 10% of UK’s 5.6m Small Businesses Use Lawyers. Can Technology Bridge the Gap?
It's startling to realize that a mere 10% of small businesses in the UK seek legal help when facing issues. This trend mirrors individual behavior, with 70% of people opting to handle legal matters on their own. The legal sector, as it currently stands, often favors those with ample resources, leaving a significant "legal gap" for small and medium enterprises (SMEs) (SRA, 2023).
The Challenge: A Significant Legal Gap
The data reveals a concerning reality: two-fifths of SMEs perceive the legal system as skewed in favor of larger businesses, potentially leaving up to 2.4 million SMEs vulnerable. The primary legal concerns for these businesses—contracts, employment law, debt recovery, health and safety, and business formation—are areas where expert legal advice is essential. Yet, nearly half of SME owners feel the legal sector fails to address their needs adequately (SRA, 2024).
This concern is shared by industry leaders such as Anna Bradley of the SRA and Chris Gorst of Nesta Challenges, who highlight the critical importance of legal support in ensuring business success and the troubling gap in access. Bradley states, "Small businesses are the backbone of our economy. Whether it's finalizing a lease or hiring the first employee, solid legal advice is key to business success. Yet, it’s evident that many small businesses struggle to obtain the legal support they need."
The Solution: Technology as a Bridge
This gap presents a significant opportunity for platforms like GitLaw and Helium Legal Services. GitLaw, by offering 100% free legal document templates and AI-driven tools, simplifies legal processes, making it easier and more affordable for SMEs to access legal support. Helium Legal Services provides more tailored legal solutions, combining technology with expert guidance to address specific legal challenges SMEs face.
The digital revolution in legal services is not just inevitable but increasingly preferred by SMEs, with 45% showing a willingness to adopt digital solutions for their legal needs (SRA, 2019).
Furthermore, this demand for tech-driven solutions extends to larger companies as well. General Counsels (GCs) in large organizations are increasingly pressured to cut costs, with 88% reporting the need to reduce budgets. The 2021 Gartner Report predicts a significant shift towards technology-enabled legal departments, forecasting increased spending on legal tech and a move away from traditional staffing models.
A Tech-Driven Legal Future
The current landscape is ripe for change. With the majority of small businesses and individuals navigating legal issues on their own, there is a clear demand for accessible, easy-to-understand, and affordable legal services. Platforms that provide comprehensive and user-friendly legal assistance are poised to not only fill this existing legal gap but also revolutionize how legal support is accessed and delivered. As we look ahead, technology will undoubtedly play a crucial role in democratizing legal services, making it essential for businesses of all sizes to embrace these digital solutions.
