Boards of directors usually have no part to play in the running of smaller enterprises, a new study has revealed. The research, carried out by Professor Colin Coulson-Thomas of the University of Lincoln on behalf of the ACCA, showed that most entrepreneurs see no benefit in appointing a board of directors and consider the presence of non-executive directors a potential brake on the business. Just a small number of SMEs have boards of directors, and those few non-executive directors that do get appointed tend to be relatives of the owners. Most entrepreneurs felt it was better for the business if they took the important decisions themselves. They also worried about the effects of handing control to people from outside the business. Where owners did recognise the advantages of having directors with skills they may lack, concerns about cost often inhibited decisions to add a board or non-executive director to the business. However, Professor Colin Coulson-Thomas said that without an independent non-executive director many entrepreneurs found it difficult to move up from thinking about short-term operational issues to more strategic matters. Date:24 October 2007
Content by: Made Simple Group
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