Abu Dhabi Chamber of Commerce hosts governance seminar
The seminar focused on how unlisted SMEs function in stock markets and how they relate to monitoring and supervising authorities.
Adel Lutfi, executive director of Emirates CoreNiche Consultancy, said a lack of leadership in the form of a board of directors influences the poor governance of SMEs. Other factors include a lack of clear distinct responsibilities and delegation of powers, future strategic plans for growth and incentives or plans to retain worthy managers. Lutfi also said many SMEs struggle to cope with changing market trends.
Lutfi said governance is of the utmost importance for SMEs because it protects the rights of owners, employees, customers, creditors, suppliers, local authorities and society. Governance also plays a role in delivering sustainability.
Lutfi noted that studies in the United States, Canada, Europe, Australia and Latin America have found that family businesses, a type of SME, account for the majority of private businesses and have a significant impact on the economic growth of a nation.