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International Journal of Academic Research in Business and Social Sciences

Open Access Journal

ISSN: 2222-6990

Financial Problems of Small and Medium-Sized Enterprises in Turkey

Durmus Cagri YILDIRIM, Ozlem TOSUNER UNAL, Ayfer GEDIKLI

http://dx.doi.org/10.6007/IJARBSS/v5-i1/1397

Open access

The main of this paper is to examine the access to finance as one of the major problems faced by SMEs in Turkey. After discussing the current status of SMEs in Turkey, their difficulties in the context of the financial crisis, their current importance in Turkish economy and as an example of policy implication Credit Guarantee Fund will be discussed. In our study, we attempted to show the effectiveness of the Credit Guarantee Fund in access to finance opportunities for SMEs during the period 1990-2013/2014. Since 2006 when the efficiency of CGF has increased, structural break was found in commercial loans series. Thus existing of a significant impact of CGF on commercial loans has been showed. Also, during the related period, Granger Causality method revealed that an increased in commercial loans have an impact on new investments. As a result, it has been concluded that CGF by increasing the volume of commercial loans contribute to the country’s current capital stock.

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