Governance in MSMEs - Pearl Initiative

Governance in MSMEs Programme

Micro, small, and medium-sized enterprises (MSMEs), comprising over 90% of Gulf businesses, are key drivers of economic growth and job creation. However, many overlook governance processes due to misconceptions, hindering long-term success.

Launched in 2017, PI’s Governance in MSMEs programme enhances MSME competitiveness in the Gulf by offering a robust, practical, and cost-effective corporate governance framework, empowering these businesses to thrive.

Programme Objectives

The Governance in MSMEs Programme aims to expand the knowledge base on corporate governance for MSMEs through various convenings, trainings and research thus supporting MSMEs to comply with governance standards, establish frameworks, policies and procedures, and work towards sustainable business practices. It will also ensure profitability, as well as long-term business resilience, ultimately resulting in positive economic growth for every industry and sector. The Governance in MSMEs programme aims to achieve the following objectives:

Raise awareness on the importance and benefits of strong and innovative governance and accountability principles, for MSMEs in the Gulf region.
Support and advice MSME’s on implementation of effective corporate governance practices through facilitated convenings, trainings and provision of practical tools and frameworks.
Publish insight reports, guidebooks and tool-kits that can be used by MSMEs to gain practical insights to improve their understanding of corporate governance and its application.
Engage future business leaders by raising awareness on the importance of good governance amongst university students through various activities.

For further information and partnership opportunities, please contact us at [email protected].

Programme Achievements

Since 2017, the Pearl Initiative’s Governance in MSMEs programme has enhanced Gulf MSME competitiveness through practical, cost-effective corporate governance solutions. Engaging MSMEs, investors, and other stakeholders, it addresses key challenges.

Governance is not a static process and needs to continue to evolve with your business. Start by establishing a Board that is committed to steering the company in the right direction. Record keeping is another governance component that is simple and yet so effective. It showcases the operational history of your organisation and is extremely insightful for someone who might want to buy or invest in your organisation. The Pearl Initiative will provide you with the resources to identify the appropriate practices for your own stage of development and evolution as a company.

SHEIKH FAHIM AL QASIMI

Partner at AQ&P

MSMEs looking to access investment need to embrace governance wholly. Not only do you need to have a governance playbook, but you also need to ensure that it is being applied. Governance adds value, not only from a valuation perspective, but also for the sustainability of the company. Applying governance from the beginning reduces the risk of transactions and protects the company and its shareholders in the long run. There is no one-size-fits-all solution, however, the basic governance tenets are obvious.