Corporate Governance and the Sustainability of Igbo-Owned Small and Medium Enterprises in Nigeria

Paschal Chima Anyanwu; Pascaline Ezife Ani; Udoka Stephen Otika

doi:10.56201/ijssmr.vol.12no4.2026.pg570.590

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Corporate Governance and the Sustainability of Igbo-Owned Small and Medium Enterprises in Nigeria

Paschal Chima Anyanwu, Pascaline Ezife Ani, Udoka Stephen Otika

Abstract

The effect of corporate governance on the sustainability of Igbo-owned Small and Medium Enterprises in Nigeria is examined. Although these enterprises contribute significantly to employment generation, economic growth, and entrepreneurial development, they face high failure rates primarily due to internal structural weaknesses, notably the absence of formal governance systems. A qualitative and conceptual research design is adopted, utilizing a systematic review and synthesis of recent empirical and theoretical literature (2022–2025). Agency Theory, Stakeholder Theory, and the Resource-Based View inform the exploration of how governance mechanisms—such as accountability, transparency, ownership structure, stakeholder engagement, and ethical practices—influence business survival, financial performance, and long- term sustainability. The findings indicate that, while Igbo-owned SMEs possess strong entrepreneurial capacity rooted in indigenous practices like the apprenticeship system, their sustainability is compromised by informality, inadequate record-keeping, lack of succession planning, and centralized decision-making. The study establishes that effective corporate governance enhances organizational resilience, strengthens stakeholder trust, facilitates access to finance, and supports strategic decision-making. Nevertheless, the adoption of governance practices remains limited due to cultural, structural, and institutional constraints. The study concludes that integrating formal corporate governance mechanisms with indigenous entrepreneurial systems is critical to improving the sustainability of Igbo-owned SMEs. It recommends actions such as formalizing business structures, offering capacity building, planning for succession, improving financial management systems, and enacting supportive regulatory frameworks. The study contributes to the literature by providing context-specific insights into governance practices within indigenous entrepreneurial settings. It also offers practical implications for policymakers, SME operators, and development agencies.

Keywords

; Corporate Governance; SME Sustainability; Igbo-Owned Enterprises; Informal Business Structures; Nigeria

References

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Corporate Governance and the Sustainability of Igbo-Owned Small and Medium Enterprises in Nigeria

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