The report, ‘Is the Future Small?’, published this week by LexisNexis UK, reveals a thriving small law firm sector with a bright future. The percentage of solicitors at small firms who previously worked at medium to top tier practices has risen from 53% in 2016 to 64% in 2019.
Currently, small law firms make up the bulk of the legal market, with 95% of firms earning less than £500,000 and 50% earning less than £150,000.
Nine out of ten solicitors surveyed for the report said the benefits of working in a small firm tend to be generally ‘advantageous’, citing the ability to remain in control (82%), a better client experience (79%), and swift decision making (76%) as the main draws.
Fewer than one in five want to work for a large firm. The rest were fairly evenly split between preferring a small or solo outfit (fewer than 20 fee earners) and a medium-sized firm for their next role.
Small is not always beautiful, however. Three-quarters of those surveyed felt some clients could perceive small firms as lacking in credibility, while 82% of solicitors in small firms worry that a lack of capacity could force them to turn good work away. One quarter of solicitors worried it may be difficult to build a pipeline of future business at a small firm. Other issues cited include that it’s hard to succession plan as clients choose the individual solicitor personally, and increasing compliance regulations.
The research was gathered through eight in-depth interviews with lawyers in small firms and online surveys completed by 176 solicitors.
Jon Whittle, market development director, LexisNexis UK, said: ‘The future is certainly bright for small firms and an overwhelming number of solicitors working in these organisations believe that small law is better―from both personal and professional standpoints.
‘While small law firms believe the benefits of their size outweigh the challenges, these organisations aren’t dismissive of the challenges they face, which is a good thing. Their combination of realism, confidence and optimism will likely help them to continue to thrive.’
