Good Governance of SMEs
The purpose of this Committee is to explore strategies to support the SME target market.
The signatories of the CGDF have over the past years worked closely on improving Corporate Governance in their investee companies and exchanged ideas on how to integrate Corporate Governance in their due diligence process. These efforts initially focused on larger companies and investments above US$10 million, for which a set of assessment tools and checklists was developed. However, the CGDF signatories realised, that for smaller investments and less sophisticated companies, there was a need for a simpler tool. Therefore, this SME Governance Tool was developed.
This Assessment Tool was developed for use by equity and debt investors during the due diligence process when considering investment in an SME. It serves as a guidance for project teams in analysing risks related to governance and identifying suitable mitigating factors. It provides a structured and effective framework for project teams to consider how improving governance can contribute to the financial and developmental goals of their organisation.