We live in a society of laws. These laws govern the various sectors of the society, providing us with the dos and don’ts of those sectors. These laws also provide how each appropriate authority should handle breach. Again, it provides us with a way to seek redress whenever we are wronged.
However, the society is dynamic and new developments are a constant, especially in these times with the great technological advancements. This is not to say that there are no other issues driving the changes in society; upon closer inspection, one finds out that technology drives most of these changes. This provides a challenge for the legal society and legal system to rise up to the prospect of being irrelevant to the challenges of the times.
What are startups?
Startups are companies in their initial stages of development. Most times, the founders of these companies try to introduce something unique (either product or service) into the market and would usually seek outside support or investors to invest in their startup.
Running a startup is not easy. Majority of startups fail in their first year and many never recover. However, there are still a lot of hurdles to cross for those that still stay, as the struggle to make the business successful continues.
Startups are crucial to the economy of any state, as they (whether as small businesses or well established organisations) are the lifeblood of every economy.
These are basically startups that have the development of technological products and services as their goal, and then bringing them into the market. They, too, face the challenges that all startups face and even more in some instances, as studies and attempts to make certain inventions can be quite costly. In fact, in certain situations, if there is no investor to fund the process, the tech startup is as good as gone.
Need for tech startup laws
As earlier mentioned, it is possible for the laws of a country to be inadequate in handling modern trends and challenges, if care is not taken. The following are reasons laws enabling tech startups are needed:
*To create enabling environment: Sometimes, the regulatory landscape of a country can be discouraging for startups in general and tech startups in particular. The hassles, the procedures, the regulatory agencies and their mode of enforcement plus the taxation laws applicable in the country can be discouraging. However, if the law creates incentives and an enabling environment for startups, then there will be a greater willingness among entrepreneurs to found startups.
*Giving foreign investors insight on what to expect: When looking for where to invest, a lot of things are taken into consideration, one of which is the applicable law pertaining to their area of interest. If the laws and protection seem favourable, it becomes more likely that the organisation will invest; but if the opposite is the case, then they might lose interest.
*Can lead to increase in GDP: Where the country has laws enabling startups, the resultant effect will be the springing up of businesses in the country, which will lead to employment. Successful tech startups, on the other hand, rule our world today. The net worth of some tech companies today is greater than the Gross Domestic Product of many countries; thus, the gains to be made from their success are obvious.
Role of legal society
It is true that the arm of government tasked with the duty of making laws is the legislature; however, the legal societies in the country can help show the lawmakers the necessity of creating tech-enabling laws in the country. But before they can do this, they must see the importance of creating such regulations, so that they can advocate, lobby and do all that is necessary to create a legal landscape favourable for tech startups.
While laws regulate the activities in a society, they can also draw a nation backwards and hinder its productivity. It, therefore, becomes important for the laws of a country to be constantly reviewed, to be progressive in not only tackling societal challenges, but also in creating an enabling environment for tech startups.
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