An Empirical Study on Corporate Governance in SMEs

SMEs play a very crucial role in the development of the economy and also help in poverty reduction. It also helps in boosting the rate of GDP and increases the standard of living of people. Corporate governance is now seen as an essential building block of stable economies. It helps to protect the rights and interests of shareholders and, increasingly, those of other stakeholders, providing a framework for effective monitoring of management actions and performance and for encouraging better business results. This paper discusses how implementation of corporate governance develops the SMEs as well as economy. In this paper, 10 parameters are taken into considerations to study the corporate governance of SMEs for two years i.e., 2012-2013 and 2016-2017. The research paper has been prepared with the help of secondary data only and the list of SMEs listed in BSE is evaluated with the help of their annual reports. The study was aimed to analyses the corporate governance in these SMEs.