The Federation of Small Businesses (FSB) has reported that legal disputes cost small business enterprises in England and Wales at least £11.6 billion each year, with at least 70% of small businesses having faced at least one dispute in recent years.
On average the amount at issue in these cases is £18,000, and yet the average cost of resolving a dispute is £17,000, according to the FSB’s report.
Because of this the FSB recommend overhauling civil court fees, strengthening alternative dispute resolution methods to work better for small businesses and introducing a specialist commercial track in the County Court.
Last year the Government passed the Enterprise Act 2016 which created the role of Small Business Commissioner. The Commissioner’s role is to give advice and information to small firms and assist small businesses in payment disputes with larger firms, as well as to direct small businesses to existing dispute resolution services. The recruitment process for the role has begun this year.
If you are a small business in need of legal assistance or advice in a legal dispute please contact our Dispute Resolution department on 01245 228136. We are highly experienced both in Court proceedings and alternative dispute resolution procedures and we can assist you in the way which best suits your small business’s needs.
This is not legal advice; it is intended to provide information of general interest about current legal issues.