Having worked in law firms of different sizes, I have noticed, with keen interest, some of the advantages of using small and medium sized law firms. The benefits are particularly pronounced when the clients are small, medium and micro enterprises (“SMMEs”). This article focuses on the SMME business environment and why in my opinion small and medium law firms are well suited to serve in that environment.

An experience with a service provider will always depend on the credibility of the people providing the services. It is important for you to do research before approaching an attorney in order to get a sense of whether the particular attorney or law firm is credible. The perspective I share below is based on my experience with credible attorneys throughout the profession.

Some of my observations while practicing at small and medium law firms, including my own, are as follows:

-       Directors at small and medium law firms tend to understand the SMME business environment on a continuous basis because they are operating in it. The issues faced by SMMEs, are or have often been experienced by directors at small or medium law firms. They have therefore already needed to consider solutions to similar problems in their own businesses and overcome them.

-       A related advantage is that directors of small and medium law firms understand the complex relationship between SMME business solutions and the law. This is particularly compliance and governance laws. As the owner of a SMME, I know now that there are many laws which can sometimes be impractical for small and medium businesses. Knowledge of these challenges enables an attorney to give legal advice that is commercially practical but remains within the framework of the law.

-       Due to the economic structure of South Africa, many SMMEs operate in industries which are dominated by monopolies or oligopolies. Owners or directors of SMMEs will know that the challenges which result from this market dominance is very specific to SMMEs. The attorneys’ profession is highly saturated and dominated by large corporates. Small and medium law firms are often competing for their place in a highly competitive market and therefore have first-hand knowledge of the tools and strategies needed to operate in, access or disrupt this type of environment.

-       As a client, you are more likely to be a priority client. It is no secret that attorneys usually have several matters which they are handling at any one time. In legal practice, an attorney has to prioritise and juggle the needs of several clients. Prioritising is based on a number of factors including the urgency of the matter and the relationship with the client. With small and medium law firms, if you are a SMME, you would be less likely to compete with large volumes of work from larger corporates for an attorney’s attention.

-       Smaller and medium law firms are accustomed to dealing with messy situations. They are able to comfortably provide legal services to businesses that do not have sophisticated systems in place or dedicated internal legal departments. Information and instructions usually come directly from the directors of SMMEs. Filtering of information and initial legal analysis have normally not first been done by internal departments. The communication, analysis, document management and creativity necessary in those situations become a skill on its own.

-       A benefit of receiving information and instructions directly from directors of SMMEs is that decisions can be taken faster. Communication between SMME clients and attorneys at small or medium law firms usually happen between persons who simultaneously appreciate the business risk of decisions and are directly responsible for those decisions.

-       It is trite that to run a SMME, directors need to be cost conscious to be profitable. Small and medium law firms tend to be more open to discussing fee structures and have more flexibility tailoring these to each client. It is important to caution that, while this is a benefit to approaching small and medium law firms, rates cannot be expected to be below what is market related.

Ultimately each client must decide what their matter needs. The essentiality of trust in an attorney-client relationship cannot be understated. Even more understated is a synergy between working styles. For SMMEs, it is crucial to choose attorneys and law firms who understand the external business environment within which they operate as well as the specific internal challenges ordinarily experienced by SMMEs.