However at a time when the profession is suffering soft revenues and modest profit increases at best, the issue of whether large law firms’ partners can be entrepreneurial is something the law firm consultant Bruce MacEwen told Bloomberg News’ Lee Paachia didn’t quite ring true. Mostly, for a start, firms pay income back to the partners in profits rather than investing into their businesses and that, according to MacEwen makes being entrepreneurial an incompatible notion.
This year has been a “long slog” for most major law firms, with revenues and profits rising modestly, if at all, law firm consultant Bruce MacEwen tells Bloomberg Law’s Lee Pacchia. Two aspects of BigLaw make it difficult for law firms to change that, he says. First, despite claims they are entrepreneurial, partners aren’t really creating something new. Second, most firms pay out all their income as partner profits, without investing significant money back into the business.
“If really you’re going to be an entrepreneur, you have to say, ‘to heck with today, I’m focused on tomorrow.’ … I don’t really see an investment mentality in law firms. It’s a consumption mentality.”