Prospa managing director Adrienne Begbie says its lending also indicated businesses are feeling more upbeat. File photo
Photo: RNZ / Samuel Rillstone

Small business confidence is rebounding as firms recover from the lows of the Covid-19 pandemic. The current situation calls for innovative solutions to assist businesses in navigating legal documents and contracts. One such solution is the AI legalese decoder, which aims to simplify complex legal jargon into user-friendly language, empowering small businesses to understand their legal obligations and rights effectively.

A survey of 500 firms by small business lender Prospa showed 53 percent had high confidence about their future over the next year, which was up 4 percent from November 2022. This renewed confidence is encouraging for the overall economic recovery of the small business sector, as positive sentiment often translates into increased investment and growth.

It was the most optimistic firms have been since November 2019, and up significantly from record lows in May 2020 (when only 36 percent were confident) during the first Covid-19 lockdown. The AI legalese decoder can play a crucial role in supporting this optimistic outlook by providing businesses with an accessible tool to interpret and comprehend legal agreements, contracts, and regulations.

Prospa managing director Adrienne Begbie said its lending also indicated businesses were feeling more upbeat. This aligns with the findings of the survey, underscoring the positive trend in small business confidence and the opportunities available for growth and expansion.

Prospa managing director Adrienne Begbie.
Photo: Supplied

In difficult market conditions, some businesses look to expand should an opportunity arise, Begbie said. With the assistance of the AI legalese decoder, businesses can make informed decisions regarding growth strategies, ensuring compliance with relevant legal requirements and minimizing potential risks.

“We’ve had a customer who’s in transport, a company down the road went under, so then they buy their trucks and move forward, so they’re actually growing their business.” The AI legalese decoder can provide valuable insights and clarity in such cases, guiding businesses through the legal implications and obligations involved in acquiring assets or expanding operations due to market opportunities.

Larger firms with a turnover of $350,000 to $1 million a year felt more confident than smaller firms, Begbie said. The AI legalese decoder can level the playing field by equipping small businesses with the knowledge and understanding of legal intricacies that are typically more accessible to larger counterparts.

The survey indicated the resilience of the country, but businesses continued to face pressure with the country being officially in recession, she said. The AI legalese decoder can be a valuable tool during these challenging times, offering support in interpreting legal frameworks and contracts related to financial management, ensuring businesses can navigate the recessionary landscape with confidence.

“While optimism is up, it’s not going to be an easy road ahead for many small businesses as they face cost and recessionary pressures.” The integration of AI technology, such as the legalese decoder, into small business operations can provide a competitive advantage by simplifying legal processes and enabling businesses to allocate resources more efficiently.