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Paving The Way to Sustainable SME’s Through Governance

21 FEB 2018, Press releases

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There is a general perception that Governance is for large businesses, in fact more often than not the term used is “Corporate” Governance, and thus SME’s (Small and medium size businesses) in general believe that this practice can be delayed to a later stage of their growth cycle. Whilst there is a growing interest and awareness towards the best practices of corporate governance, especially amongst large family businesses in the region that are transitioning to second or even third generation owners, it’s never too early for even a young aspiring entrepreneur to elevate their knowledge about governance and how they can apply it to their business at infancy stage.

One thing to note is that Governance is a journey and never a one size fits all solution. There are common goals such as achieving sustainability, adding better controls, driving better transparency, ensuring accountability across all levels of an organization, and mitigating against risk, but how to do that may vary from a company that is in its first 3 years of operation vs an established forty year old global conglomerate.

For an SME or a young entrepreneur, governance practices need to be demystified and not seen as a burden and a cost but rather as a driver towards sustainable growth. For example risk mitigation may be seen as a practice that we do when we have more revenues, expenses, assets, liabilities and profits at stake, whereas in reality if you do not manage risk at an early stage you are more likely to be amongst the majority that do not see it past the first three years of operations, known to many as the valley of death. Tackling risk during the first three years, is very different than another high risk stage of operation which is transitioning to a second or third generation of ownership, but equally as important. In a large corporation, managing risk may involve hiring an in-house risk team, or seeking the advice of an external consultant, whereas in an SME you may seek a mentor or advisor that can help in guiding the leader to the various potential risks and what are the ways to mitigate against them.

Another way to view the journey of a small business is through the various stages they may obtain and seek funding, which impacts the ownership structure, and thus the governance required. Family, friends and partners that have partnered with an SME may not be as structured towards their approach to seeking a return on their investments but do need to have transparency and a proper mechanism to either hold accountable members that are not performing or exit their investment. Forming an advisory board of mentors, partners, and family will differ at this stage and may address how to hold the entrepreneur or leader of the SME accountable, and smooth out any conflicts that may occur between the investor and entrepreneur. This stage differs from when the SME attracts venture capitalists or private equity firms, or at a more advanced stage when the firm may have multiple owners and may need further independent non-executive board members with a diverse set of backgrounds. Conflicts of interest may arise even more at early stages, such as use of start up capital for personal use or outside of the original scope of the business, and hence it is just as important to have the right level of controls on the business. Whilst at a larger business you may have, internal audit practices, or a sub committee from the board that oversees audit and risk, at an SME addressing proper policies and procedures, having an authority matrix across various levels of the organization including the early stage shareholders and the appointed CEO or managing partner may suffice.

If you are an entrepreneur or running an SME, governance is not an added burden or cost to your business, but rather an evolving practice that can help fuel your businesses towards more sustainable growth.

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SEDCO Holding Group Concludes 33rd Annual Football Cup

March 27, 2019, News

In front of a crowd of 500 people, SEDCO Holding Group concluded its 32nd Annual Football Cup with the final match between SEDCO Development and Bonnon. The cup, which aims to drive the spirit of teamwork under a sporty and entertaining atmosphere, saw SEDCO Development team be crowned champions winning the final 2-0. In total,…

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  • أقامت سدكو القابضة جلسة جديدة من سلسلة #تطلعات_الربع وتم طرح إنجازات الربع الثاني وخطط الربع الثالث لعام 2019 وكيفية تطويرها لفتح أفاق جديدة لسدكو.

SEDCO Holding held a new #Quarterly_Outlook session where the 2019 Q2 achievements and Q3 plans were shared.

 #سدكو #سدكو_القابضة
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ضمن برنامج ‪غدوة وندوة والذي يهدف لنشر سلاسل توعوية مختلفة لتنمية ثقافة أفراد المجموعة، أقامت سدكو القابضة ندوة بعنوان قوة العزيمة لموظفيها كان ضيفها الأستاذ سفر الحقباني أخصائي برامج الغرفة التجارية بجدة لذوي الاحتياجات الخاصة 
As part of the "Lunch & Learn” program which aims to raise awareness and knowledge on different aspects for all individuals in our group, SEDCO Holding held a session for its employees on Will Power presented by Mr. Safar Al-Hagbani, Jeddah Chamber of Commerce’s Specialist Programs Leader for People with special needs.

#SEDCO #SEDCOHolding #LunchAndLearn
#سدكو #سدكو_القابضة
  • كجزء من برنامج #انبض والذي يعزز الإهتمام بالصحة والتي تؤثر إيجابياً على إنتاجية الموظفين، استكملنا في مجموعة سدكو القابضة تطبيق فكرة يوم الدرج والذي سيقام كل أحد.
‏As part of #Unbod Program, Stairs Day is scheduled every Sunday as maintaining good health improves productivity.
#سدكو #سدكو_القابضة
  • شكراً لكل موظفينا، بجهودكم تعد سدكو القابضة مكانًا رائعًا للعمل لعام 2019.
Thank you to all of our employees, because of your efforts SEDCO Holding is a certified Great Place to Work for 2019.

#سدكو #سدكو_القابضة
  • ‎الأب سند وقوة وأمان لكل أسرة، تعب وتحمل وربى. ما تكفيه كل كلمات الشكر. شاركونا التهاني في #يوم_الأب_العالمي بتعليقاتكم

  • ‎لقطات من افطار العيد لسدكو القابضة لعام ١٤٤٠
Glimpses of SEDCO Holding Eid Iftar for the year 2019
‎#سدكو_القابضة #sedco_holding
  • A drop for you, an ocean for someone else | قطرة لك ، محيط لشخص آخر

Join us on Thursday June 13 8pm @redseamallksa Gate 8 and save a life!

شاركوا معنا يوم الخميس ١٣ يونيو في الرد سي مول بوابة رقم ٨ وساهم في إنقاذ حياة شخص ما!
  • كم آخر عيدية جاتك؟
How much was your last Eideya?

#Eid #Eideya #SEDCO #SEDCO_Holding
#سدكو #سدكو_القابضة #العيد #العيدية
  • عيدكم مبارك تقبل الله منا ومنكم صالح الأعمال وكل عام وأنتم بخير.

Eid Mubarak, from all of us at SEDCO Holding we wish you a blessed and happy Eid!

#Eid #SEDCO #SEDCO_Holding #Eidmubarak
  • تجدد مجموعة سدكو القابضة بيعة الولاء على السمع والطاعة لسمو ولي العهد الأمين، صاحب السمو الملكي الأمير محمد بن سلمان، نائب رئيس الوزراء، وزير الدفاع، حفظه الله.

  • مسيرة عطاء سدكو تساهم في فرز وتجهيز كسوة العيد للمحتاجين بالتعاون مع #كسوة_السيدة_عائشة
The Journey of Giving at SEDCO continues by preparing and distributing Eid clothes for those in need in collaboration with Kiswat Alsayidah A’isha
#JourneyOfGiving #SEDCO #SEDCO_Holding
 #مسيرة_عطاء #سدكو #سدكو_القابضة
  • اللهم احفظ بلادنا من كل شر وأدِم علينا أمننا واحفظ جنودنا المرابطين