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Setting up a business involves complying with a range of legal requirements. Find out which ones apply to you and your new enterprise.

Every business needs to be aware of its obligations under minimum wage and equal pay laws, as well as recent pensions auto-enrolment changes.

What particular regulations do specific types of business (such as a hotel, or a printer, or a taxi firm) need to follow? We explain some of the key legal issues to consider for 200 types of business.

While poor governance can bring serious legal consequences, the law can also protect business owners and managers and help to prevent conflict.

You must comply with legal restrictions on employees' working hours and time off, or risk claims, enforcement action and even prosecution.

The right employment policies are an essential part of effective staff management. Make sure any policy is clear and well communicated to employees.

Whether you want to raise finance, join forces with someone else, buy or sell a business, it pays to be aware of the legal implications.

While sick employees need to be treated fairly, you need to ensure that 'sickness' is not being used as cover for unauthorised absence.

Marketing matters. Marketing drives sales for businesses of all sizes by ensuring that customers think of their brand when they want to buy.

Most pregnant employees are entitled to maternity leave and maternity pay, while new fathers are entitled to paternity leave and paternity pay.

Commercial disputes can prove time-consuming, stressful and expensive, but having robust legal agreements can help to prevent them from occurring.

As well as undermining morale, illegal discrimination can lead to workplace grievances. Employee discrimination is covered by the Equality Act 2010.

Whether your business owns or rents premises, your legal liabilities can be substantial. Commercial property law is complex, but you can avoid common pitfalls.

Home, remote and lone workers are becoming increasingly commonplace. Key issues include communication and how to manage and motivate people remotely.

With information and sound advice, living up to your legal responsibilities to safeguard your employees, customers and visitors need not be difficult or costly.

The right approach to consulting with and providing information to your employees can improve employee motivation and performance.

As information technology continues to evolve, legislation must also change. It affects everything from data protection and online selling to internet policies for employees.

Disciplinary and grievance issues can be a major burden to employers. Putting in place and following the right procedures is essential.

Following the right dismissal and redundancy procedures helps protect your business and minimise the risk of a legal dispute at tribunal.

Intellectual property (IP) isn't solely relevant to larger businesses or those involved in developing innovative new products: all products have IP.

Employment tribunal claims are a worrying prospect for any employer. A tribunal case is a no-win situation – even if the claim is unjustified.

Knowing how and when you plan to sell or relinquish control of your business can help you to make better decisions and achieve the best possible outcome.

From bereavement, wills, inheritance, separation and divorce to selling a house, personal injury and traffic offences, learn more about your personal legal rights.

The number of UK small firms increases despite challenges

13 June 2023

The number of small businesses in the UK is growing; however, it's "one of the most challenging times to be a small business owner" according to retail expert Mary Portas.

The number of micro-businesses in the UK has grown every year in the past decade, according to new analysis by Mastercard and Opinium. It means that the UK's smallest firms are bucking a trend while the UK's medium and large business population has plateaued in recent years.

Growth in the number of medium and large businesses in the UK has yet to return to the highest levels seen in 2020. However, the number of micro-businesses (with 0-9 employees) and small firms (with 10-49 employees) in the UK grew to 1.4 million in 2022, up 31,000 on the previous year.

Tough times to start a business

Commenting on the data, retail expert Mary Portas said: "Small businesses really are the lifeblood of our economy. They're innovative, creative, resilient. And, despite the fact it's one of the most challenging times to be a small business owner, their numbers are growing. People's desire and appetite for what they do has also never been greater. 

"We know it continues to be an unpredictable world right now. But when you're small and nimble it's an opportunity to out-manoeuvre the bigger players. Small business owners never fail to inspire me with their desire to do better, learn and flex themselves in the ever-evolving landscape of today's business."

SME confidence remains low

However, smaller firms are less optimistic about the outlook than larger businesses, it seems. Less than a quarter (24%) of businesses with ten or fewer employees expect their performance to increase in the next 12 months. Of those with ten to 49 employees, only 34% expect their performance to improve.

By comparison, 43% of businesses with between 100 and 249 employees are optimistic about their future and expect their performance to increase in the next 12 months.

Of all sectors, retailers are one of the least likely to have registered a strong performance last year, with only 15% saying they'd seen an increase in their performance in the year up to April 2023 - despite the fact that this sector employs the most people and has the largest turnover.

"There's no shortage of entrepreneurial ambition in the UK, but it's worrying that their optimism lags behind big businesses. If we're to boost growth, it's vital that big business and government support small companies with skills, funding and policy so they can reach their potential." Kelly Devine, UK&I president, Mastercard

Strive UK

Mastercard offers the Strive UK programme, which helps small businesses by providing free access to training and advice on issues such as setting up an online shop, managing cashflow and creating a social media strategy. Strive UK has supported more than half a million businesses to date and works with Enterprise Nation, Digital Boost and Be the Business to provide support.

Written by Rachel Miller.

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