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Legal Needs of a Small Business: Contributions of Community Support Systems Towards Mitigation of Legal Challenges

All business operations, including small businesses, are anchored on legal factors that dictate how their owners should carry out their respective entrepreneurial activities. Before opening any business, entrepreneurs (business owners) must consider the legal requirements of the enterprise they intend to set up. The government often offers these requirements through the respective departments and institutions. With their small amounts of capital invested in the business, small-business owners usually need help to meet all the legal needs of their business. It is this reason why the community support systems should intervene by giving support to small-scale entrepreneurs.

With more focus on legal matters, small businesses learn their legislation’s insight and how to handle legal issues correctly whenever they arise. Small business entrepreneurs need to hire top-notch employees who understand their roles and responsibilities and desire to help the business succeed. Of course, there is competition within the small-scale business industry; hence, besides personal gains, hired employees should strive to bring the best for the business (Celuch, 2019). The owners are responsible for identifying a potential employee through the legal procedure so that their business can succeed. Selection of incompetent employees may cost the business a lot through lawsuits made against them if their employees fail to observe the legalities of the operation.

Additionally, a small business owner must consider putting in place the proper business structure by the business laws to acquire the operating license of their business (Mazzarol & Reboud, S. (2019). Licensing is the legal document that permits a business owner to start and run a business in a given area. The structure within which the business is intended to operate must meet a given standard, that is, when it can be eligible for the license. If the business owner fails to meet the required structure standards, it may lead to fines or a court case against them. In some extreme situations, the failure of the business to meet the requirements may lead to revocation of the license or even total closure of the business.

To support small business owners in dealing with the challenges relating to the legal requirements of their businesses, community support systems have developed various ways of helping such entrepreneurs navigate the obstacles. Some systems, such as small-scale traders’ unions and organizations for small business owners, help entrepreneurs acquire their legal needs through the organization (Celuch, 2019). Ideally, it is easier for them to acquire a license through an organization than individually. Unions also advocate for favorable policies enabling business owners to exercise their rights freely.

To some extent, the local community collaborates with small business owners to organize events that promote their businesses. These events are important because they create a sense of uniqueness in a business experience by attracting customers. Some systems collaborations also act as networking opportunities for business owners to build meaningful connections beyond the community.

In conclusion, small business owners are affected by the business’s legal needs and other factors in which community systems make interventions. Owners can meet other businesspeople at networking events, exchange stories, and gain insight from one another’s triumphs and setbacks. The connection between businesses and the community is for the benefit and success of the same businesses; therefore, fostering closeness in their cooperation is an expansion avenue for their endeavors. Communities may boost the local economy and foster a sense of camaraderie among small companies by banding together. Working with small companies on events can create valuable relationships within the community and offer networking possibilities.


Celuch, K. (2019). Managing the financial, governance, and legal considerations. The Business and Management of Convention and Visitor Bureaus.

Mazzarol, T., & Reboud, S. (2019). Franchising and legal issues for small business. Springer Texts in Business and Economics, 451–510.


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