Are lawyers loners or aspiring solopreneurs?

Female legal practitioners numerically dominate the legal profession in Australia, according to the recently released 2020 National Profile of Solicitors.

Not surprising given the significantly higher number of females enrolling in Bachelor of Law degrees over the last decade.

What is surprising, however, is that the recent data reveals that the vast majority of legal practitioners work in sole practices. Across Australia, 82% of practitioners are either sole practitioners or work in law practices with one principal.

That statistic is even more startling in Victoria where 87% practitioners work in solo practices, closely followed by South Australia which has 86% of its lawyers operating as ‘one-man bands’.

For those of us practising In Queensland, the data tells us that 76% of us work in practices with only one principal practising certificate.

What is this telling us?

One must wonder whether lawyers prefer to be lone wolves rather than hunt in packs.

Or is the shift a reflection of our entrepreneurial world, with lawyers wanting to operate creatively and without the constraints of big-firm policies and processes?

When I was a first-year law student (bright eyed and bushy tailed), I envisaged that my career would reach its peak working in a large law firm with many other ambitious, hardworking and talented legal professionals.

Perhaps I had watched too many LA Law episodes, (and later Ally McBeal)?! However, I firmly believed that any sensible career aspiration had to include working in the biggest top-tier law firms. Bigger was definitely perceived to be better.

Over the last decade, figures show a 45% increase in the total number of legal practitioners in Australia, with the 2020 report citing a total of 83,636 lawyers. State by state, it was revealed that NSW boasts 35,718 lawyers; Victoria 21,118 and Queensland 13,043 – a significant 45% increase overall over the last decade.

Whilst the ACT led the way with a 32% increase in law practices (from 231 to 305), Victoria reported a 17% decrease, in contrast to Queensland’s 17% increase. The Queensland numbers are particularly significant because Queensland now has 1959 sole practices – an increase of 182 on the 2018 numbers. If this trend continues, imagine the fractured state of the Queensland market by the time of the next state of the profession report in two years’ time!

What will be the status of the big law firms? Will they dissipate and dwindle in size as the young cohort exercise their entrepreneurial muscles?

Back to the question … why is it that there has been such a proliferation of micro practices? Is it that the profession now perceives that we can offer better value to our clients in an expense-controlled sole practice?

Or is it that we feel that a small practice allows better work-life synchronisation and is more intimate, enabling closer connections with our stakeholders? Perhaps, as a group, we no longer believe that only the top tier can boast rock-star lawyers. Does a digital world enable small practices to have just as many professional development opportunities as the globals? Is bigger no longer viewed as necessarily being better?

A staggering 60% of the current cohort of lawyers are aged between 25 and 44. Could it be that this generation of lawyers has entirely different aspirations to those of lawyers graduating 20 to 30 years ago? Is it conceivable that they are more confident in their own abilities and don’t feel compelled to ride on the backs of the kudos of the big firms?

Is the shift to solo practices values driven or simply a function of there being fewer opportunities in the top-tier firms?

Dare we acknowledge that the legal profession is fragmenting and that we are a bunch of loners; Maverick-like in our approach to professional practice and happy to row our own boats?

And, will the day come when lawyers operate their practices from a home office and meet their clients with a cuppa and some homemade scones?

More questions than answers, I know, however I’d be interested to hear the thoughts of my 83,635 colleagues!

Also see This is us: The Australian legal profession 2020 snapshot.

Travis Schultz is the Managing Partner, Travis Schultz & Partners.

Share this article
Share on facebook
Share on twitter
Share on linkedin

Leave a Reply

Your email address will not be published. Required fields are marked *

Search by keyword