If you’re an entrepreneur based in the UK, you might be interested in this story just sent in to 4M: We are told that British SMEs have missed out on an estimated £172,000 in damages, the equivalent of around £250 billion across the UK, in the last five years because of unpursued commercial litigation. That’s according to new research released today by Annecto Legal, a UK-wide service helping businesses realise their commercial litigation claims.
Annecto Legal’s exclusive research revealed that almost 30% of the SMEs surveyed felt they have been bullied by a larger company or corporation, and close to a third of all the SMEs surveyed haven’t pursued legal action because of fears about cost, time taken, and the consequences of losing.
The survey found that only one in five SMEs have been involved in litigation, with almost half saying they had to finance their case on an hourly rate basis, which for many small businesses can be crippling. Interestingly ten per cent revealed they would be interested in third party litigation financing to cover costs and risks.
As the trend for SMEs sourcing investment continues, two British entrepreneurs have set up a first-of-its-kind venture which will allow businesses certainty from the outset by providing funding for commercial litigation without the previous (financial) associated risks.
Annecto Legal is the brainchild of Mark Beaumont and Sally Dunscombe (pictured) and offers hope to businesses who, unlike individuals, do not have the option of legal aid if they can’t afford to go to court. The pair both have personal experience of not being able to pursue commercial disputes with bigger companies because of a lack of available funding. Their frustrations of knowing the other company or person was in the wrong but not being able to do anything about it led them to investigate other ways that SMEs could fund disputes, with the goal of helping change the way businesses pursue litigation, giving everyone access to justice.
Mark Beaumont, co-founder of Annecto Legal, says: “This research confirms our belief that all too often SMEs are put off pursuing justice because they feel bullied by big companies; are worried about the cost of court; and are unsure that they could win.
“The extent to which small and medium-sized businesses feel bullied by big companies is astounding, with more than a quarter saying they have felt this way. Despite this, almost a third haven’t pursued a potential legal case in the last five years due to underlying fears.
“Our solution enables businesses, who may not have previously had the means to get their day in court, to access free expert advice and funding for commercial litigation.”
Annecto Legal commissioned Opinion Matters to carry out the research between 24/09/14 and 30/09/14. The base sample comprised 501 decision makers in UK-wide SMEs. The full results broken down by region, age and gender can be accessed by clicking here.
