Purva Gaur, Founder – Crest – up

MSME sector, tend to ignore the importance of Corporate Governance.

Lot of firms , especially in the MSME sector, tend to ignore the importance of Corporate Governance. However, it is one of the most importance factors in managing the growth of an organization in an ethical and transparent way. The following points remind us why we need to emphasize on CG :

  1. Small firms often lack the resources and expertise to manage complex business operations, which can lead to governance failures. By implementing corporate governance, they can improve their management practices and reduce the risk of fraud and other financial irregularities.
  2. Good Corporate governance also helps small firms attract investors and lenders as it gives them the confidence that the business is being managed effectively and in the best interests of all stakeholders
  3. It helps small firms establish clear policies and procedures for decision-making, risk management and financial reporting. This helps to ensure that the business operates in a sustainable and responsible manner.
  4. CG helps small firms build a positive reputation in the market which can be a key competitive advantage in attracting customers and partners.

Ultimately, for long term success of small firms, CG does become very crucial and establishes a culture of transparency, accountability and responsible management. 

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