The bigger the better as we progress in our entrepreneurial journey. Where governance is enhanced for sustainability by the owner and other professionals.
We are always talk about our aspiration to survive as businesses beyond the existence of the owner(s).
Surely it is achievable especially when the perfect nodes for good corporate governance are not only put in place but made a daily practice.
The benefits are endless for the business and its stakeholders.
Also to remind as we go it is an incremental gain where corporate governance even begins at an idea stage until it is defined to be a corporate.
Here we explore, revisit and share good governance matters with the expected benefits. So let’s ride together in this edition for our entrepreneurial success.
To start with corporate governance is the central nerve system of an organisation which drives all other components through a planned/placed structure.
It takes us back to our business engineering where a structure should be foundational. Most of our entrepreneurial businesses are running a show that is almost baseless as they do not have a defined structure.
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This is critical because it defines who is supposed to do what, at which level and the co-ordinating of functions within that business.
Having in mind that there is no one generic structure especially in this modern world of doing business (you should create your own).
Therefore by going back to the corporate governance matters through configuration the entrepreneur is encouraged to develop and refer to a viable structure going forward.
It becomes an advantage for the business as it is able to map its direction, allocate its resources effectively and efficiently.
The three basic resources which are land, labour and capital are then well positioned for what I call entrepreneurial profitability.
Entrepreneurial growth for good governance is therefore a critical matter.
This is in the sense that corporate governance becomes a legal person on its own with the powers to protect not only itself but the business and all its stakeholders.
The advantage here is that it cannot be touched, seen walking or breathing like a human being but can sue and be sued in its own persona.
This is magical even challenging artificial intelligence in its business protection.
Corporate governance if given its space in your entrepreneurial business can prove to have its clear rights and responsibilities that enhance sustainable growth.
At the same time it looks after its own rights while executing responsibilities in a highly ethical manner.
I have seen many entrepreneurial businesses taking a blame on law makers, professional bodies and regulators for their own failure to comply in some ethical matters.
This can be a thing of the past if good corporate governance becomes a practices borrowing from prescribed best global, regional and national guidelines of which if followed will leave the entrepreneurial business at the epitome of operational excellence.
In the broadness of understanding corporate governance I narrow done to the three main connecting cogs of the subject area.
It amalgamates establishing the strategic direction of the business; ensuring compliance; and managing risks that follow business on a day to day operation.
The vision set can be only achieved if the entrepreneur is guided by not only the mission but compliance to corporate governance matters.
In a sense that the operating environment coupled with policies and statutory instruments especially in Zimbabwe require continuous timeously adjustments for sustainability.
Also having in mind that a business is a high definition of risk such that governance measures should be proactively placed to counter any associated along the way.
The standard operating procedures that run the overall and functional activities should also born out of corporate governance.
As a way forward we should then appreciate that good corporate governance give a peace of mind not only to the entrepreneur but to shareholders and stakeholders.
It is an igniter, successor and guider in turning an entrepreneurial business into an independent entity as aforementioned giving the owner(s) greater capacity to source other needed investments at the same time remaining more profitable.
At this stage of configuration the business will be able to appoint professionals to manage the business for real gains.
That is the same reason why global scholars and practitioners have referred to the school of thought as a tool that enhance effectiveness in oganisational welfare, stakeholders’ goals, shareholders’ interests, creditors expectations, regulators’ approval and satisfaction of the whole economy. Think about it as you grow in this journey.
*Dr Farai Chigora is a businessman and academic. He is the head of business science at the Africa University’s College of Business, Peace, Leadership and Governance. His doctoral research focused on business administration (destination marketing and branding major, Ukzn, SA). He is into agribusiness and consults for many companies in Zimbabwe and Africa. He writes in his personal capacity and can be contacted for feedback and business at fariechigora@gmail.com, www.fachip.co.zw, WhatsApp mobile: +263772886871.
