Influence of corporate governance practices on Small and Medium-sized Enterprises Competitiveness in South Africa

Abstract

This study aims to investigate how effective governance frameworks impact the capacity of SMEs to thrive and compete at both national and international levels. It acknowledges the pivotal role SMEs play in the economy.It explores core corporate governance concepts applied to South African SMEs, blending agency theory and stakeholder theory within a robust theoretical framework. Comprehensive analysis of governance techniques assesses their effects on decision-making, transparency, and risk management, influencing SME decency and resilience. The study underscores the importance of tailoring governance principles to address unique challenges and opportunities in South African SMEs. Practical examples illustrate the benefits of stronger governance, such as improved financing access, enhanced credibility, and long-term sustainability. Emerging trends and advice for enhancing competitiveness through governance are discussed.The research contributes to the academic understanding of how governance frameworks impact SMEs in South Africa.The findings suggest that an all-encompassing strategy, which combines legal compliance, stakeholder engagement, and strategic decision-making, can significantly enhance the competitiveness of South African SMEs. This insight has practical implications for both SMEs and policymakers in the region. Interests.