This article examines corporate governance, its role, its significance, and its impact on any company that adopts it in practice. Research interest typically focuses on large companies. Unlisted small and medium-sized enterprises (SMEs) do not receive the same level of attention. The limited focus of both research and business practice on unlisted SMEs appears to be linked to the limited application of corporate governance principles.
This situation creates significant challenges for the operation and growth of these enterprises at a time when ESG principles are becoming increasingly important for enhancing business competitiveness and long-term sustainability.
Small and medium-sized enterprises struggle to understand—and often fail to grasp—the positive impact that adopting corporate governance practices would have. The absence of a culture that supports the implementation of corporate governance practices appears to be largely linked to a lack of information and ignorance regarding the contribution of corporate governance to a business, thus creating a vicious cycle. The limited number of studies contributes to this situation, highlighting the need for further research given the particular importance of small and medium-sized enterprises to the Greek context.
In this context, highlighting the distinctive characteristics of Greek small and medium-sized enterprises and the challenges they face can help us understand whether corporate governance is a luxury or a strategic necessity for their sustainable development.

JEL classification code: G34, M10, L25