ABSTRACT
The present study reflects the position of corporate governance in the start-ups and Micro-small and medium enterprises. The company having a corporate governance mechanism will develop faith in stakeholders. As start-ups are doing great these days MSMEs play a very major role in the economy. Corporate governance will develop investors’ confidence in a very broad manner. Establishing the proper structure of corporate governance is in itself a very big responsibility for any organisation. When it comes to start-ups and MSMEs is important to understand various parameters. The various roles played such as the Division of roles and responsibilities, and framing committees are the backbone of corporate governance which results in the smooth functioning of the internal management of the organization. Principles governing corporate governance and various committees facilitated in this mechanism. This paper also reflects on the benefits of corporate governance and the challenges faced by the Start-up and MSME regimes in adopting it. Reflects statutory regulations governing startups and MSMEs. The case studies of Bharat Pe and Zilingo are examples of weak corporate governance, how it resulted in loss due to structural downfall and what is needed to make it a robust organization. Highlighting competition law’s role in the governance of start-ups and MSMEs is also mentioned, how the effective governance helps the small-scale enterprises to expand their business in the long run and their competitive spirit in the market also improves. A strong statutory measure will help in structuring the mechanism. So, spreading awareness related to corporate governance by various means such as teaching, training, generating, and expanding ideas so that people will get the clarity of the strong basicabout this concept. And can inculcate it in various arenas. Proper Policy measures to be adopted. So,a flexible approach to be adopted by the organization, whether it is large or small.
KEYWORDS- Corporate Governance, Startups, Enterprise, Key Personnel Managerial
INTRODUCTION
The concept of corporate governance reflects that a good board set-up is the essence of the strong competitiveness of the organization. Corporate Governance relationship focuses on the good relationship between the company and its stakeholders. The term stakeholders include employees, managers, directors, shareholders etc. So, the director’s role is to focus on the management of the company and monitor it. What is the social environment in the organization? For an effective sustainable environment corporate governance is very necessary. The board must listen every member so facilitate or entrust them with proper responsibilities and roles. To ensure fair practice, there must be an effective relationship between the owners, employees, or members of the organization. The various start-ups Bhart-pe, Zilingo, and Infra tech face issues in dealing with corporate governance[1]. Besides this,certain start-ups come into the category of Unicorns due to their success. There must be awareness regarding how corporate governance takes place.
[1] https://www.ijllr.com/post/corporate-governance-issues-in-indian-start-up-culture-a-critical-analysis