Larger corporations in the United States are continuing to slash employees as the economy remains unsteady, putting more of the onus on small businesses to nurse the struggling nation back to health.
According to recent research compiled by small business legal consultant Rocket Lawyer, one-third of small businesses are planning to hire new employees in the next six to 12 months’ however, 45 percent of small business owners said the economy is their top concern.
“Small businesses are the key drivers of economic recovery and they continue to fuel job growth,” said Charley Moore, executive chairman and founder at Rocket Lawyer.
While some small business owners are adding jobs, optimism among small business owners continues to fall. The survey found only 56 percent of small business owners expect the second half of 2012 to be better than the first.
“However, it is clear that the high costs of labor, benefits like healthcare and legal compliance have made some business owners uneasy,” said Moore. “It’s important for small businesses to stay on top of potential legal issues to avert possible pitfalls and to continue driving economic growth.”
Legal issues are going to occur among all small businesses at some point, and it is important to be protected with specific business insurance policies to help them afford potential litigation. In fact, legal issues are growing within small businesses; 65 percent of of small businesses face a legal issue in the past year, a 13 percentage point increase from the previous year.
“Many small business owners will procrastinate or skip getting legal help to save money, especially in our current economy,” said serial entrepreneur Lenny Holmes. “I’ve learned it’s not smart to cut corners on legal protection for your business.”
Top legal issues facing small businesses
This year is a big deal for small businesses throughout the United States who are heavily influenced by the policies enacted by whoever will be voted into office. Thirty-three percent of survey respondents said government is their biggest legal concern.
Twenty percent of small business owners are worried about potential lawsuits in the upcoming year. A few of the lawsuits they may encounter include contract disputes, collection issues and real estate transaction problems.
