Examining Corporate Governance Practices among SMEs in Ghana: A Case Study of Some Selected SMEs in Accra

Abstract

The subject Corporate Governance has been a topical agenda among SMEs in Ghana. Nonetheless, there has been less effort in ensuring that SMEs practice good corporate governance unlike the efforts being put in large firms. As a result of this, the research seeks to identify corporate governance practices among SMEs, their challenges and the benefits they derive from it. An interview guide was adopted to collect data from selected SMEs. The study revealed some constraints in their performance of corporate governance. Some of the challenges they faced were financial constraint, their inability to have the right professional mix on the board and management, inconsistency in the practice good governance in their operation as business and founders or entrepreneurs not giving their full attention to the businesses they've created because of their commitment in other businesses they are employed in. In assessing the challenges, relevant recommendations were suggested for three categories of people: Policy Makers, Shareholders, Executive and Non-Executive Directors. Some of the recommendation given are: to empower NBBSI to regulate and ensure SMEs practice good governance, government policies on corporate governance should be fine-tuned to suit SMEs, government should remove superfluous legal and regulatory limitations in the establishment of SMEs, and continues training for shareholders and directors, and finally adopting alternative ways of rewarding NEDs.