The rule of law provides a framework for how to act and operate. It holds people, businesses, and governments accountable for their actions. For the entrepreneur, the law provides the rules of the game. However, for many business owners, the legal framework is viewed as an onerous and costly expense. It is often a blind spot until they are in a legal mess.

While business owners are likely to never become legal experts, they must have a sound working knowledge of the laws that affect them and their business operations. Knowledge of the law is essential for small businesses, from the start-up phase, during the growth and scale cycles, and throughout the life of the company.

Each country has its own legal framework to regulate how business is conducted. The basic tenets are usually the same, especially regarding the use of contracts. No matter the size or lifestage of your business, contracts will always play a significant role. The protections offered by contracts are essential to the organisation, from negotiating commercial leases, employment contracts, to vendor agreements. The entrepreneur should use the law to minimise their risk exposure and maximise their protections.

An important sub-set of the legal framework is Intellectual property (IP). It is an aspect of the law that every business, regardless of size, should protect. Often, start-up businesses are founded because the entrepreneur identified a gap and developed a solution. There is, therefore, a definite incentive for small business owners to understand the basics of IP law.