Adherence to Good Corporate Governance in Small and Medium Enterprise in Ghana: An Investigative Report

Abstract

The main research objective was to ascertain the extent to which Small and Medium Enterprises have adhered to good corporate governance principles and practices in the formulation of organisational structures, everyday decision-making processes and more importantly, in organisational operations.  This research was conducted using Small and Medium Enterprises in the Weija District of the Greater Accra Region. Questionnaires were sent to fifty (50) Small and Medium Enterprises, out of which thirty four (34) responded. The main findings of this study are that, most Small and Medium Enterprises do not have corporate governance framework in place to guide their operations. A greater majority do not have effectively constituted boards, even though few have advisory boards to advice and supervise management in their operations. Therefore no clear cut division of responsibilities exists. It is recommended that policy makers particularly government enforce corporate governance practices in the Ghanaian Small and Medium Enterprises by way of coming out with new policy guidelines.

Keywords: Corporate governance, governance principles and practice, Small and Medium enterprises.