Corporate governance  Weak corporate governance of small firms, burdened further with poor availability of crucial inputs, has made these firms extremely vulnerable. Good governance practices in SMEs will help them grow or attract additional investors. The absence of good corporate governance practices makes it difficult for them to access finance from banks or investors.
Adoption of sound corporate governance by SMEs is indispensable for taking this sector to a higher growth trajectory. The lack of corporate governance is attributable to lack of awareness about corporate governance practices and its impact on corporate performance.