11/09/2014
During a lecture organized by the eastern Chamber in Qatif
Legal Expert: the legal framework that protects small and medium enterprises from closure
The legal counsel Obaid Alobaid emphasized the need to document all transactions between enterprises and customers to clarify the legal relationship between all parties in order to avoid future problems and continuing the success of the project. He said during a lecture organized by the East Chamber Branch in Qatif on Tuesday 9th September 2014, entitled ' legal frameworks in the legal frameworks for various institutions both large and small is not very different, pointing out that the difference between those businesses only in the degree of risk, the less small projects in cooperation between the parties, indicating that legal frameworks are divided into 3 sections and is the legal form of the project (quality of individual or company), which includes the establishment of contracts between partners and client Internal (employee) requires a relationship between the parties to establish a clear legal relationship includes all cases either salary or leave or benefits or other things that brought confusion in the future, and finally the external customer (service beneficiary) as institutions develop clear contracts with customers with all things.
The most important challenges facing small businesses is the lack of transparency and clarity in all the sections, which requires paying attention to such things because of exposure to loss or closing if there are problems between one of the parties. He explained that SMEs are defined as enterprises which do not increase the number of employment of 20 workers and capital are less than million, showing that the characteristics of small projects is easier establishment procedures they do not need huge capital and also the ability of the owner to collect all the profits, as well as the simplicity of the business process in the event of failure, pointing out that the disadvantages of SMEs is high risk due to lack of experience, and a life in her life and limited capacity To raise funds and limited capacity to bring the skills and competencies to the project.
