Governance in SMEs

South African listed companies are regarded by foreign institutional investors as being among the best governed in the world’s emerging economies; and as a result South Africa has benefited enormously. For this reason, non-listed companies (including SMEs) should also aspire to follow sound governance principles and practices, so as to reap the long term benefits such as business sustainability and stakeholder confidence which will ultimately assist with the growth of SMEs into larger well established Organisations. It is therefore recommended that SMEs consider the application of sound corporate governance to their business operations from the very outset, and not only when they have grown into a large Organisation and/or apply for listing.