Cost Of Litigation To Small Business

Litigation hurts small business in more than just financial ways, a new Advocacy study has found. Since most small-business owners are personally invested in their businesses, the toll of being sued also includes substantial emotional hardship and changes in the way the business operates.
The Impact of Litigation on Small Business was written by Klemm Analysis Group with funding from the Office of Advocacy.
The study found most of the participants had to recoup their litigation losses by cutting expenses or by having to expend even more funds in a search for customers. These costs were absorbed by the business because increasing prices was seen as a competitive disadvantage and used as a last resort.

CEOs on Innovation

A newly released survey from the Council on Competitiveness and New Economy Strategies asked leading corporate executives to share their views on the changing nature of innovation. The survey’s main finding--that innovation is going global--should come as no surprise. However, the survey did uncover some fascinating results. For example, when asked to rank the most important factors in their firm’s ability to innovate, corporate leaders cited access to a science and engineering talent pool, close supplier and customer relations, entrepreneurial managers, and a good communications infrastructure. When asked to identify factors that would disqualify a region for new corporate investments, the list sounds pretty similar. A talent shortfall, poor communications infrastructure, poor K-12 education, and low quality of life were cited as impediments to outside investment. Executives were also asked to identify the biggest barriers to corporate innovation. A majority (61%) cited competing internal priorities due to finite resources. Other top cited issues included scarce investment capital and a short-term mentality among managers.
The 2005 Innovation Survey, from the Council on Competitiveness and New Economy Strategies, is available by clicking here.