Fresh Thinking on SME Governance
An easy–to–use website will shortly offer small and medium size enterprises (SMEs) practical guidance for improving their systems of governance.
MEDIA RELEASE
Tuesday, February 9, 2010
Fresh Thinking: First Boards is an initiative from the Institute of Directors (IoD) to help promote a better understanding of governance principles and foster a greater awareness of how improved governance improves corporate performance.
Dr William Whittaker, IoD’s Research and Policy Manager who has overseen the project, says the website reflects the growing awareness of both the benefits and challenges of governance. The website would also be practically relevant to businesses looking to constitute a board for the first time.
New Zealand businesses have long known that the SME sector is the backbone of the local economy, representing as it does nearly all the country’s registered companies, 40 per cent of value-added output and most of our major innovators and entrepreneurs.
“But even though we are among the best entrepreneurs and many SMEs are seizing opportunities created by globalisation, significant challenges remain — not least in the area of governance,” says Dr Whittaker.
He adds that while many people tend to associate governance with regulating, auditing and compliance, it is more about nimble decision-making, seizing new opportunities and taking an adventurous approach to management issues.
“The best governance is not about putting the brakes on. It’s about getting ahead. It’s about the big picture and strategy. It’s about knowing where you want to be and how you’re going to get there,” he says.
Governance means identifying and pursuing opportunities and managing risks. No matter what their size, businesses with formal structures develop more quickly and efficiently than those without. All of which is incredibly important for profitability, shareholder returns and the capital value of the enterprise.
Fresh Thinking: First Boards is especially timely in light of the call in the recently issued Capital Markets Development Taskforce report for competitively minded SMEs to significantly improve their awareness and systems of governance.
Fresh Thinking: First Boards will be launched by the Hon Gerry Brownlee, Minister for Economic Development, on February 15 at the IoD premises in Wellington.
www.firstboards.iod.org.nz
For more information please contact
Dr William Whittaker
04 474 7656