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Evaluation Of Good Corporate Governance Practices In Smes In Zimbabwe. Case Of 3 Leather Products Smes In Bulawayo.

Evaluation Of Good Corporate Governance Practices In Smes In Zimbabwe. Case Of 3 Leather Products Smes In Bulawayo.

DATE PUBLISHED
Published October 9, 2015
SECTION
Articles

Author Details

Abstract

Zimbabwe is facing serious economic challenges which are resulting in the scaling down or closure of many companies. This situation has resulted in high unemployment rate of up to 85% (CSO, 2011). The government has encouraged people to start their own self-income generating projects (SMEs). The government established a fund which is accessed by people willing to start their own SMEs ventures. This incentive by government saw many people establishing SMEs. However, for the SMEs to succeed, they need to follow proper corporate governance practices to achieve their objectives. This paper seeks to evaluate the
corporate governance practices being employed by SMEs in leather industry based in Bulawayo. The main objective is to evaluate the corporate governance practices of SMEs against seven characteristics of good corporate governance by Mack, (2010): clear strategy, effective risk management, discipline, fairness, transparency, social responsibility and self-evaluation. Descriptive survey, through the use of interviews and a questionnaire were used. A sample of 45
research participants was drawn from the 3 SMEs using judgmental sampling method. Data analysis was done through descriptive statistic analysis model.

Keywords

evaluation, corporate governance practice, SMES

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