Roles of an entrepreneur

Member of board

The ultimate responsibility of the operations of a limited company belongs to an appointed board of directors. The board selects and appoints the CEO, is accountable for internal audits of governance and its reporting to the owners. If needed, the board also represents the company in certain cases.

The role of a board of directors is commonly undervalued in small and medium-sized companies. Certain studies show that roughly half of these companies lack any company external member in their board. In micro-sized companies this figure was even 70 percent. However, company external board members may provide significant added value to the strategic planning of the company. Being outsiders, they are able to follow the operations from a distance and therefore they are able to bring new insight and alternative solutions, which enhance processes and operation models.

A well functioning board consists of persons with varied skills. Above all, various perspectives and courage to question or change the company’s strategy is needed.

The responsibilities of a board member are significant. Therefore each board member needs to put his / her heart and soul into this task and also recognize and understand all responsibilities and obligations related to the post.