Business law and its importance for Entrepreneurs

Business law of otherwise known as corporate law in the laws that govern the business world. It encompasses all laws that guide on how to set up a business and then how to run it. This includes all the laws that govern on how to set up, start, manage, run, close or sell a business. It includes contracts, laws of corporations, other business organisations, commercial papers, income tax, secured transactions, intellectual properties, and other transactions and dealings related to the business. Here is what Prenola Naidoo our Corporate Law facilitator has to say about the important of knowing business law for an entrepreneur.

The world of business is often a daunting and peculiar place. The law serves as one of the primary mechanisms used to protect entrepreneurs from any unruly surprises, costly mistakes and mitigate any risk potentially faced by the entrepreneur. Without functional knowledge of business law, entrepreneurs are often left at the mercy of competitors, suppliers and other third parties.

Business law is of vital importance to entrepreneurs as it safeguards entrepreneurs and their businesses from legal disputes and other legal issues that may have an adverse effect on their revenue, resources and reputation.

A fatal mistake that entrepreneurs often make is that only once they find themselves in a precarious situation with the law, that they then intend to educate themselves on the relevant laws and regulations relevant to their business. In order to safe costs and the metaphoric burns associated with landing yourself in hot legal water it is advised that entrepreneurs ensure that they have a firm grasp on the basic laws and regulations that govern their business as well as the consequences associated with non-compliance.
As an entrepreneur, you are required to stay up to date with all of the relevant laws and regulations that governs your business, and to ensure that you understand the consequences and affect of such laws and regulations on your business.
A good asset for all entrepreneurs is to invest in an attorney specialising in business law. Attorneys are experts in the field of the law and will be able to ensure that you as an entrepreneur do not find yourself in any uncomfortable situations which could negatively affect your business.

What are your thoughts around business law? Join our Business Law incubation and equip yourselves with the knowledge you need.