Enhancing Good Governance: A Study of Governance Scoring in Selected NSE-SME Companies

Good governance has become increasingly important for small and medium-sized businesses (SMEs) listed on the National Stock Exchange (NSE). It is essential for encouraging sustainable growth, drawing investments, and maintaining stakeholder confidence. This study uses a selected governance scoring approach about the board responsibility on nine companies during the year in SMEs listed on the NSE. Creating and implementing a governance scoring model customized for the unique environment of SMEs in the NSE constitutes the quantitative component. This approach considers several governance factors, including the responsibility of the board. Data is gathered and evaluated to determine the governance scores for each SME. This allows for comparison analysis and trend discovery within the sample. The results are intended to clarify the relationship between sound governance practices and company success and provide insights into the current governance environment among SMEs listed on the NSE. Furthermore, this research makes a valuable contribution by emphasizing the difficulties SMEs encounter in putting strong governance frameworks into place and offering suggestions to improve governance efficacy specific to the SME sector. Ultimately, this research hopes to add to the current conversation about good governance in SMEs by providing insightful information to investors, regulators, policymakers, and SME management to support governance practices and promote competitiveness, resilience, and sustainable growth in the NSE's SME sector.