A new online resource is making legal services more accessible for SA entrepreneurs

• Addressing the legal aspects of their businesses often ranks high among the challenges SA entrepreneurs face.
• A new online resource promises to make legal knowledge and services more accessible for business owners.
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According to the SME South Africa report, which surveyed 1 000 SME owners across the country, a combined 88% of respondents indicated that they needed either some or a lot of funding-related support, and that the lack of support "in accessing markets was similarly prominent, followed by the need to gain a better understanding of laws and regulations".

Legal challenges can pose significant risks for entrepreneurs, threatening the growth and stability of their businesses.

The founder, Monisha Prem, has worked with growing businesses for more than 20 years.

She told News24 she observed repetitive patterns and costly mistakes by business owners in applying law and general risk management.

Common challenges

According to Prem, entrepreneurs face a significant challenge in establishing strong fundamentals and laying a solid foundation for their businesses in the current business landscape.

She said implementing a solid structure "using law as risk prevention has incredible benefits".

While entrepreneurs often prioritise customer acquisition and securing capital, it is crucial to remember that issues - such as non-paying customers, disputes related to employees and capital expenditure management, among others - can post serious threats to a business, she said.

"Contract reading, understanding and negotiation are the most common legal pitfalls entrepreneurs fall into," she said.

"Many entrepreneurs are uncomfortable with contracts and often miss opportunities to make more money or are exposed to unknown costs or other risks. Other challenges include the assumption that compliance, governance and legal strategy development is reserved for large corporates or has no real value in smaller or growing businesses."

Prem added:

The same survey, which was mentioned earlier, also found that 32% of business owners feel that South African labour laws inhibit SME growth, while 37% indicated that it did not.

"The remaining 31% were unsure, suggesting that many business owners were not aware of the possible impact of labour law on their businesses," the report said.

What's eLegl?

Prem founded eLegl to bridge the gap between legal expertise and entrepreneurial success.

At the heart of this online platform's offering is its innovative legal academy, described as a "legal boot camp for entrepreneurs".

What sets it apart is the fact that its courses are tailor-made to cater to the unique needs of business owners, providing practical remote-modules, Prem said.

Price packages vary according to an entrepreneur's requirements.

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"The platform is a comprehensive legal information and resource centre," she told News24.

"The main objective is to simplify commercial and corporate legal frameworks, and transfer this knowledge to entrepreneurs affordably."

She said it also provided tools, such as the legal health-check, document models and risk management frameworks.

This is to empower entrepreneurs to implement law into the business at an early stage, which positions the business for high growth rather than face possible losses because of missed loopholes.

In essence, the platform gives entrepreneurs access to legal guidance from trusted attorneys and breaks down the barriers of the complexity of commercial and corporate law.

She said:

"Law is not the solution as a last resort, but rather as a business starting point."