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SMEs in Uganda are currently the number one employers and contributors to GDP for this pearl of Africa. However, business governance challenges faced by these Organisations are slowly decreasing their contribution to the economy. This paper examines how corporate governance practices can enhance the performance of SMEs. Results from a quantitative survey of 100 SME proprietors show that corporate governance increases accountability, effective decision making, fairness and equity and transparency aspects that significantly enhance the profitability of these organizations. Findings further showed that corporate governance infused better management practices, improved decision making, strengthened internal controls and reduced losses in SMEs that applied these principles. This paper advocates for government, business services organizations and commercial banks to provide more awareness , skills training and motivation for SME proprietors and managers in the use of corporate governance principles in their business operations.