Talk of corporate governance is not exactly common in the small business setting. After all, the term “corporate governance” refers specifically to large, publicly owned and traded companies—companies that are required by law to manage and disclose how board members and executives make decisions.

While most small businesses typically don’t have a board of directors, they do have investors or multiple business partners with a substantial interest in the success and growth of the company. In this sense, talk of corporate governance in the small business setting makes sense. Following the best practices that many large businesses have established through corporate governance, small businesses and start-ups can set out on the path to streamlined and accountable operations.

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