Salute to Good Governance!

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Sheatwork notes on Good Governance Day that entrepreneurship & good governance go hand in hand

Sheatwork notes on Good Governance Day (December 25) that entrepreneurship & good governance go hand in hand

Good governance calls for efficiency, and it means active participation, leading to growth. Something that entrepreneurship can inculcate and make good use of.

Good governance has a full day devoted to it. It is celebrated on Good Governance Day (GGD) which is observed every year in India on December 25, to mark the birthday anniversary of former Prime Minister (late) Atal Bihari Vajpayee, who was amongst the founder members of erstwhile Bharatiya Jana Sangh, which later became known as Bharatiya Janata Party (BJP). It was in 2014, that the day was established by the Central Government – to honor Vajpayeeji by fostering awareness among the people of accountability in government. This clearly points to the governance that Vajpayeeji tried to establish in the government that he led in the country.

Objectives of Good Governance Day

It aims to make people aware about government commitment, for providing a transparent and accountable administration in the country, and is highlights the need to enhance the welfare and betterment of the people.

It is celebrated to standardize government functioning and make it highly effective and accountable governance for Indians. It also seeks to implement good and effective policies to complete the mission of good governance, and to foster growth and development in the country. To make the citizens active participants in good governance process, it also strives to bring them closer to the government.

Why does entrepreneurship need good governance?

In general terms, governance simply means how an organization is governed. It is the science of performance and behavior; and it refers to several processes that must include historical, cultural, social and political determinants. What is the relationship between governance, entrepreneurship and economic growth?  

When talking about entrepreneurs, corporate governance identifies the roles, authority, and timing in key business decisions between shareholders, directors and the CEO. It is an important aspect of the start-up, and here’s why entrepreneurs should focus on corporate governance:

  • It manages complex decision-making. Startups are just as complex as large MNCs, though with a difference. Founders are often the CEOs of their venture, and they also hold shares, and sit on the Board. If you have raised funding from venture capital firms, as an entrepreneur, then you will need to manage their interests in the shareholding structure. As your startup grows, it requires active management. The responsibilities, authority levels, and timing of decision-making need to be planned.
  • It is time-saving. Anyone who has been involved in a startup knows that decisions need to be made quickly. The ability to maneuver and take swift decisions can make or break your strategy. You can shape a corporate culture that not only empowers CEOs, but also delineates accountability when tough decisions need to made. It can save you time in the long run.
  • It promotes investor confidence. As an investor, corporate governance needs to see a well laid-out approach to accountability, responsibility, as it gives an investor clarity and confidence on the structure of your venture.

Think about the major decisions that your startup may face in the long run, and you need to overcome challenges. This is where corporate governance will come in, and continue to evolve as your startup grows. It will help you concentrate on what needs to be focused on, so that the start-up can be steered in the right direction.

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