Good corporate governance improves company performance

[Terminaladdict]

Maybe not "corporate" governance, but in SMEs there is a lack of understanding of what governance is, and what the difference is from a shareholder, or a manager.

The seems to be an inherent attachment in SMEs; unwilling to let go of a business, in an act that SME owners see as giving up control of their own business. They certainly govern already, but the IOD (and me) are proponents of independent directors, which results in a small business owner feeling a lack of control.

-Paul

[ibrwaikato]

@Terminaladdict The feeling of a lack of control among small business, and even in larger businesses – especially family owned, is a very real issue. Venture capitalists want a big slice of equity and so the proposition becomes something like, “do you want 100% ownership of a $50,000 business or 49% of a $50m business. If businesses want good performance they need good governance – really good directors – they trade control for increased shareholder value.