Abstract
The study investigated the effect of governance structures in small and medium enterprises (SMEs) on the performance of agricultural projects in Rwanda, focusing on Davet Ltd. It aimed to assess the influence of board composition, decision-making processes, and regulatory compliance. Employing Agency, Stewardship, and Resource Dependence theories, the research utilized a combined descriptive and action design with a census of 39 individuals from Davet Ltd. Data analysis involved quantitative methods, using descriptive statistics (means, frequencies, percentages) and inferential statistics (correlation and regression analyses). The findings revealed that board composition positively impacted project outcomes, with 61.54% of respondents agreeing and a mean of 4.21 (SD = 0.57). Board size and independent directors received 64.10% agreement (mean = 4.13, SD = 0.54), while stakeholder involvement had 66.67% agreement (mean = 4.15, SD = 0.50). Furthermore, 71.79% agreed that decision-making efficiency positively influenced performance (mean = 4.10, SD = 0.52), and 76.92% affirmed the importance of data in decision-making (mean = 4.12, SD = 0.45). Regarding regulatory compliance, 69.23% agreed (mean = 4.13, SD = 0.63), and 71.79% highlighted the significance of internal controls (mean = 4.18, SD = 0.56). The regression analysis indicated a positive impact of board composition (coefficient = 0.096, p = 0.085) and a significant effect of decision-making processes (coefficient = 0.079, p < 0.05). Additionally, there was a strong positive correlation between governance and agricultural project performance (Pearson correlation coefficient = 0.819**, Sig. = 0.000). In conclusion, the study emphasized the vital role of governance in enhancing agricultural project performance, recommending that SMEs prioritize effective governance structures. The research aimed to enrich literature, provide practical insights for SMEs, and inform policy interventions, contributing to the fields of business management, governance, and agricultural economics