While small and medium sized enterprises are often referred to as the lifeblood of economic growth, they are also highly susceptible to risk and the impact of recession. No single statistic embodies this strange contradiction more effectively than the fact that 200,000 small businesses were lost in the U.S. alone during the Great Recession, as the effects of financial crisis and the collapse of the housing market made it almost impossible for independent business owners to continue trading.
The Importance of Compliance: 3 Crucial Modern-day Laws
With the global recovery now in the midst of a full-scale recovery, however, small business owners have averted their thoughts to alternative threats. One of the most prominent of these is the issue of compliance, which is required by law and impacts on multiple aspects of business operation. Consider the following 3 laws and the importance of compliance for you venture: –
1. Workplace Health and Safety Laws
No series of laws are more convoluted than those relating to workplace health and safety, which force employers of all sizes to comply with a strict code of conduct. These laws are extremely vulnerable to change and growth, while they are also extremely in-depth and cover almost every aspect of physical interaction and well-being in the workplace. From the need to implement a compliant accident reporting system to the importance of hosting a functional air conditioning unit such as those sold by Pure Air Conditioning, you must understand these laws and adopt a proactive approach to complying with them.
2. Tax Codes and Structure
Small businesses can be established with various models and infrastructures, and their choice has a direct impact on their tax liability and rate of National Insurance contributions. Given that British tax laws are among the most stringent of any European country, it is imperative that you make a conscious effort to comply while also selecting a taxation model that suits the size, scale and scope of your business. Whether you operate as a sole trader of a limited company, you will need to understand your taxation requirements and execute the necessary repayments.
3. Employee Grievance and Harassment Laws
One of the main benefits of living in a developed economy is the presence of laws that protects everyday citizens and employees. This is something that small business owners must be aware of, whether the employ one or thousands of individuals nationwide. Essentially, business owners must respects the fundamental rights of their staff members, and ensure that they are able to work in an environment that is free from harassment, discrimination and physical abuse. In instances where employees do complain of ill-treatment, it is crucial that you have a clearly defined strategy for handing their case in a fair and even-handed manner.
Cover photo credit: ourmanwhere / Flickr
