What is Startup Governance?
The term “governance” refers to the structures, rules, and processes through which companies pursue their objectives. It encompasses a variety of issues, ranging from shareholder rights to a company’s internal decision-making processes and control systems. “Governance for startups not only determines survival of companies, but also the success of them”, believes Michael Hilb, an Expert at Innosuisse and the CEO of the DBP Group. Ms. Poyni Bhatt, CEO of SINE IIT Bombay feels that “it sets a base for processes, culture and people within a startup”.
The term “governance” refers to the structures, rules, and processes through which companies pursue their objectives. It encompasses a variety of issues, ranging from shareholder rights to a company’s internal decision-making processes and control systems. “Governance for startups not only determines survival of companies, but also the success of them”, believes Michael Hilb, an Expert at Innosuisse and the CEO of the DBP Group. Ms. Poyni Bhatt, CEO of SINE IIT Bombay feels that “it sets a base for processes, culture and people within a startup”.
Conclusion
It is important to see governance as an investment rather than as a cost, says Michael Hilb. He believes that whilst governance may reduce the runway in the short term, its benefits will be felt in the long run for any startup. The key is to add governance practices at the right time to extract maximum value out of it.
