Business enterprises are required to follow several laws and the regulations differ in gravity as per the scope of the activities conducted. But essentially, all businesses are obligated to maintain a certain approved government-defined code.
The US Small Business Administration (SBA) established in 1953 as an agency of the Federal Government to protect the interests of small businesses, to preserve free competitive enterprise. It was set up with a view to aid the development of small business enterprises that in turn aid the growth of the economy. It is an agency instrumental in the development of small business concerns.
Here we will take a look at the rules for conducting a small business. These are general rules that apply to small scale business enterprises and may differ from industry to industry.
This is the first most important step while setting up a business. The owners have to register the business with the appropriate authorities as per the requirements of the state mentioning the nature, scope and anticipated liabilities of the business enterprise. Licenses have to be acquired when starting a business that requires a specific license, for example, license for a liquor enterprise.
- Labour Laws
Once a business house starts functioning the management has to ensure that the norms for the health & safety of its employees, specifying fire precautions, machine safety rules, safety of the building where the employees work are being strictly complied with.
- Work Environment
The work environment of an organization depends on the nature of the business and the culture the company would like to follow. But the bottom line remains the same, harassment of employees, both male and female in any manner will not be tolerated, the company can enforce regulations only in relation to work. It can not however force its employees to perform functions that do not fall under the purview of the business and violates any other state law.
- Employee rights
The terms and conditions of employment are specified in the Letter of Appointment and the company is under obligation to fulfill the same. The rules of hiring, resignation procedures, leave policy etc need to be explained to the employees. In case of non-compliance, the employee will be in a better position to present his/her case in the labour court or in the court of law.
- Intellectual property
Intellectual property is a sensitive issue in the business world wherein the logos, trademarks, patents, copyrights, inventions, etc entail huge financial investments. Thus it is a major financial obligation on the company that requires special attention of the management.
- Fair trading
Fair trading practices have a wide spectrum and have special clauses for all kinds of businesses. The state laws are stringent and govern the functioning of businesses under their territories.
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