The formalization of MSMEs is an important step toward bringing the sector into the mainstream of modern social and economic development. MSMEs exhibit a high rate of informality, which prevents them from accessing a wide range of economic benefits, including business development support services and financing, which are vital to their growth and development. The process of enabling an increasing number of MSMEs to be brought into the formal business environment is therefore critical to unlocking the dynamic energies of operators within the sector and building a platform for inclusive economic growth.
There is currently no easily accessible business formalization and legal advisory service for the MSMEs. We seek to take advantage of this gap in the marketplace to design and implement Legal Bloom, a programme that enables MSMEs to transition from informal business operations to formalized business operations. Moreover, we are a business development and consulting entity that is both an SBDC and a BDO, providing a range of business advisory and consulting services to MSMEs. We are therefore seeking to position the Legal Bloom programme as a channel to offer end-to-end services to not only get MSMEs formalized but provide other solutions that are critical to their growth and sustainability.
There are many owners of informally operated businesses who are not aware of the benefits of formalization, and who find it challenging to deal with the administrative tasks involved in registering or incorporating their businesses. Additionally, Legal Bloom offers support services for MSMEs seeking to not only formalize their businesses but looking for assistance to move ahead through the first stage of the entrepreneurial cycle.
Many entrepreneurs and small business operators struggle with the administrative process required to get formalized, either because they do not have the knowledge and training required, or they simply cannot afford to hire an attorney to assist them in registering or incorporating their businesses.
In cases, where the MSMEs can even afford to hire a legal professional it may make economic sense for them to outsource the administrative functions and reduce their expenses, as well as avoid the opportunity cost. It may be a better idea for them to focus in-house resources on the core business activities and contract an outside specialist to handle such administrative tasks.
The proposed services include the flagship legal advisory and consulting service geared towards supporting entrepreneurs and business owners with getting the business structure set up from the beginning stage of the entrepreneurial cycle.
Service offerings include: