Over the years, small and medium enterprises (SMEs) have been consistently recognized as the backbone of economic development, more so in developing countries. They play a pivotal role in driving socio-economic development and growth through fostering innovation, creating employment opportunities, stimulating local economies and contributing to crime and poverty eradication. Globally, SMEs account for over 90% of all registered businesses. In Africa, their presence is more pronounced, with approximately 94.3% of businesses classified as SMEs, according to the African Development Bank’s (AfDB) Africa Economic Outlook 2025 report. In contrast, large enterprises, while greatly influential due to their scale and economic reach, represent only 0.02% of businesses in the continent. This illustrates just how heavily Africa’s economies rely on smaller enterprises for stability and growth. In sub-Saharan Africa, the entrepreneurial vigor of SMEs has proven to be a powerful catalyst for change. However, recent local and global developments have begun to threaten the very existence and sustainability of these enterprises. Factors such as unpredictable tax policies, regulatory complexities and global supply chain disruptions have heightened operational risks for SMEs, many of which lack the legal expertise and investment needed to navigate these challenges effectively. By increasing access to legal expertise and promoting the utilization of existing legal frameworks and tools, these enterprises stand a better chance of surviving a brutal business environment which has placed many under bankruptcy, court administration and liquidation.
Traditionally, the provision of legal services has been anchored on the billable hours model, a framework that quantifies legal productivity based on time spent. This mode has long been regarded as the standard approach within the profession, particularly for firms that measure productivity sorely through revenue generation. Though this is effective in tracking legal efforts, it often prioritizes profit making over service access, making legal services a bit costly and in many cases, out of reach for small businesses. As a result, the human element of legal support has been underemphasized. Initiatives and efforts aimed at democratizing access to legal services for marginalized groups including SMEs have not been openly pursued, widening the gap and leaving many SMEs out in the cold or at the mercy of unscrupulous legal practitioners. The lack of professional and affordable legal guidance exposes SMEs to avoidable risks, creating conditions where small missteps can escalate into serious challenges that ultimately lead to their demise.
Howbeit, the rise of legal tech presents a promising avenue for bridging the gap faced by SMEs. In developing countries, platforms such as Wakili AI are pioneering solutions that offer affordable, on-demand legal services. Through subscription-based models, SMEs can access specialized resources, advanced legal tools and direct connections to practitioners who understand the unique challenges of SMEs. This virtual general counsel approach offers a scalable and cost-effective way for small businesses to actively pursue legal matters that are critical to their operations and growth prospects. Beyond technology, there is an opportunity to reimagine corporate social responsibility (CSR) within the legal profession. Legal firms can create structured pro bono programs or CSR-driven advisory initiatives specifically designed to support SMEs, at a lower cost.
In parallel, raising public awareness cannot go unmentioned. Regular discussions on legal topics such as contract negotiations and intellectual property rights should be amplified through mainstream media and digital platforms, echoing to business-owners about the resources, tools and support available. Combining all these efforts would create an adaptive ecosystem which will allow SMEs to have a solid starting point when confronted with issues that require a legal solution.
Legal support for SMEs can take many forms, from digital do-it-yourself services to specialized, targeted solutions tailored to the unique realities of each enterprise. The central aim is to align these needs with accessible and affordable legal expertise that adds tangible value. Opportunities for reform exist on several fronts and stakeholders should collectively prioritize initiatives that strengthen the SME ecosystem. Professional legal societies and bodies can champion for SME-focused legal programs such as legal clinics and create incentives for firms to dedicate time and expertise towards small business support. Correspondingly, the judiciary can intercede by expanding alternative dispute resolution mechanisms designed specifically for SMEs, ensuring fair outcomes without subjecting them to the face value structure of litigation which can be overwhelming. Simultaneously, there would be merit in drawing lessons from other countries. For instance, Japan operates one-stop SME support centers that provide subsidized legal consultations, while South Africa has established small claim courts and simplified regulatory services through its IP commission. Conclusively, empowering SMEs through accessible legal support is both a development necessity and a governance imperative.