I was asked to present my talk regarding the “Importance of Law for Businesses.” My presentation focused on how the law could be utilized to boost growth.
The law is often viewed as an array of “dos and don’ts.” The common perception is that law can be described as a collection of rules, regulations, and guidelines to be followed or risk consequences. While this is partially true, however, the scope of the law is enormous.
The law is an integral aspect of any business, and consequently, any business needs to be aware of the nuances of the business environment they work in click here.
The legal space includes the global, regional, national, county, and global environments.
Investors of significant size would want to understand the legal system thoroughly before investing money in a particular business or product. This is why well-written laws are essential to attract foreign investors to a nation.
Additionally, businesses must know their legal framework to make the most utilization of it. Legality is a dual-edged sword in companies as it can be utilized to expand, but changes in the law could create a hostile environment that could make it impossible to run.
Legal changes can create new opportunities for businesses. Businesses that can quickly adapt to changes in the law will be able to grow and survive more rapidly than their competition.
I will present an example of how a change can be seen in the global climate.
In the past few years, it was a few years ago that the European Union (EU) passed the General Data Protection Regulations (GDPR), which made it mandatory for companies that provide services to comply with the laws.
These rules, therefore, have an impact on Kenyan businesses with clients within the EU.
An organization that is quick to adapt and adheres to GDPR will gain an advantage over its competitors.
Regionally plans for trade integration across the continent through several trade agreements create tremendous opportunities.
Congo in EAC
The recent admission by the Democratic Republic of the Congo (DRC) into the East African Community (EAC) is a second chance. The entry was made possible through a change in the law.
On a national level, there are continuous changes to the law, which provide opportunities and influence the strategy.
A good illustration could be the Start-Up Act which opens the market to businesses that are new along with their owners.
Law changes may result in a challenging business environment that could call for an adjustment in approach.
When Covid-19 occurred in the year of Covid-19, regulations for public health were quickly changed, and the change impacted the majority of businesses.
These regulations were modifications to the legal framework.
To maximize the utilization of the law to aid in expansion, it is essential for it to, in the first place, comply with all relevant rules and regulations.
Additionally, a company must regularly review its understanding of the legal framework to be aware of new opportunities that might be presented. This could be a part of the strategy of the business.
It is also crucial to be aware of how to adjust to a challenging environment created by a change to the law.
This could involve diversifying the line or entirely moving to a completely new line.