Governance and Leadership in Enhancing SME Resilience in Ghana: A Systematic Literature Review

Small and medium enterprises (SMEs) are especially susceptible to pandemics. Consequently, resilience and adaptability to shocks from pandemics like COVID-19 are crucial. Nonetheless, although SMEs have strategies to cope with these, there is still a dearth of research on the nature and effectiveness of these coping strategies. Thus, it remains unclear how leadership and governance frameworks reduce SMEs’ vulnerability and increase their resilience to pandemic risk. This academic article provides a systematic literature review on the role of governance and leadership in enhancing the resilience of small and medium enterprises (SMEs) in Ghana. The review explores existing literature on SME resilience, environmental uncertainty, and the impact of governance frameworks. The article also focuses on how leadership practices in the Ghanaian context contribute to building SME resilience in times of crisis, such as the COVID-19 pandemic. The study analysis revealed that there are opportunities for SMEs to adopt better governance and leadership practices that foster long-term resilience. Governance practices, such as formal structures, board diversity, and leadership, enable SMEs to respond to crises and navigate challenging situations. Moreover, leadership styles that prioritize governance procedures, especially transformational leadership, empower SMEs to maintain agility and innovation, thereby securing their survival and growth in a rapidly evolving environment. The review highlights the need for stronger governance frameworks and leadership development programs that equip SME owner-managers with the tools to navigate environmental uncertainties.