Influencing elements to implement corporate governance in SMEs: a study with Financial Excellence Limited

Abstract

Financial Excellence limited is one of leading training service provider for the financial service sector in Bangladesh. It also provides services regarding advisory, senior recruitment and IT capability building support. As it is considered as an SME with a moderate level of governance system it seemed like an SME should have more structured governance system. According to a report published by the Edinburgh Group, it is estimated that more than 95% of enterprises of the world are SMEs and it is easy to see that how the proper management of the SMEs can boost up the economy for any country. Though the performance of SMEs may have a mixed impact on the economy but this clearly shows that involvement of a huge number of investors who are investing their asset to grow into something bigger. So, it is very important to ensure the right of these shareholders / investors and to protect their investment and interest in the company. Bringing the outsiders in business may seem irrelevant for SMEs but that can help a lot to make neutral decision in the company. But to do that organization must have a proper structured code to implement like one for large corporations or other listed companies which is not available for the SMEs. Due to its importance in coming days, I tried to identify to factors that will influence that code to follow corporate governance in SMEs as per the comparison with FinExcel and provided few possible proposals to make sure that the operation and activity of FinExcel become more stronger.