Scaling Up Internationally: What SMEs Can Learn from Nevada’s Legal Stance on Polygamy
As Up4Scale emphasizes, it’s not just the target market that SMEs need to consider when scaling internationally, but also the diverse legal frameworks within those markets. From markets with friendly policies and practices, to those that may require the enterprise to modify some activities, to those that are challenging from a legal compliance standpoint, HSBS recently studied the spectrum, asking SMEs about their biggest challenges to international business expansion. Unlike larger enterprises, SMEs hardly ever have the in-house bandwidth or lawyers – but less sophisticated legal frameworks can be a big risk to the enterprise.
Take for example Zoe Adams’ article on legal polygamy in Nevada, which provides a fascinating look at how this practice is polygamy legal in nevada is or isn’t sanctioned by different levels of state law. The article details the apparent confusion among both law enforcement and legal professionals in the state, about whether polygamy was legal or illegal in the context of the enforcement of other laws. Then, the author takes a trip back to the 19th century and the founding of the Utah Territory (now Utah, Nevada, and Wyoming), explaining how modern laws on polygamy are the product of that time. Then, the author tackles present-day implications of this odd legal ology, as that’s quite rare-Nevada is one of only a few jurisdictions in the world where this practice is neither a felony nor a misdemeanor, even when older ant-polygamy laws are circling around.
The bigger question is, what does this mean for SMEs who are scaling internationally? What does it mean if your target market has a legal framework that’s difficult to navigate, or full of grey areas like Nevada’s laws on polygamy? The same considerations from the article apply in the case of polygamy: primarily, the clarifying role of the Nevada Supreme Court. When the Court decided in favor of statutory analysis rather than historical precedent, the law became more crystalized and predictable for those complying with the law in question – instead of being left in murky moral waters.
If polygamous relationships are considered to be businesses, then we could say that the previously-mentioned situation is like a married couple having products and brand identities that are distinct from each other: they get married, but the products don’t necessarily merge or become entirely indistinguishable. Small and medium-sized enterprises are similar in that, when entering a new market, they have to differentiate their operations according to cultural and legal norms. That may mean a company has to adapt certain practices, behaviors, or procedures in the name of compliance with local legal frameworks.
The takeaway is that while polygamy in Nevada, or any U.S. state, may not be legal from a moral standpoint, it may still be permissible behavior that’s not prohibited by law in that particular state. In addition, the company will be able to steer clear of the punishment of the law by ensuring that their practices are not in violation of existing legislation. Adhering to legal guidelines will ensure the company and its transactions are protected from legal penalties and lawsuits.
That said, businesses have to consider the pros and cons of entering a market with unconventional legal landscapes. In the case of Nevada, it could be said that polygamy is a hidden opportunity for many SMEs who want to scale in the area. Even if the company doesn’t specifically make polygamous products, the life choices of their customers may be in line with their mission and purpose. The question is whether you need to be a lawyer to do business.
For more information on legal frameworks, you can visit the USA.gov website.