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Micro And Small Enterprise Growth In Turkey: Under The Shadow Of Financial Crisis

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  • ŠEmsa ÖZAR
  • Gökhan ÖZERTAN
  • Zeynep Burcu İRFANOĞLU

Abstract

The present study analyzes the impacts of selected factors on the growth of micro and small enterprises (MSE) in Turkey. Using unique national field survey data on urban MSE that engage 1–49 persons, we present the determinants of MSE growth for the period between the start‐up of enterprises and the year 2000. We evaluate the impact of the financial crisis experienced in Turkey in 2001 on MSE. Detrimental effects of the crisis on MSE are clearly detected in our estimations. Some of the factors contributing to the growth of MSE lose their influence almost immediately during the crisis; indeed, the impact of some factors is reversed. Overall results reveal that there is much scope to design supportive policies for MSE to enable them to withstand the negative impacts of future crises, especially in emerging economies.

Suggested Citation

  • ŠEmsa ÖZAR & Gökhan ÖZERTAN & Zeynep Burcu İRFANOĞLU, 2008. "Micro And Small Enterprise Growth In Turkey: Under The Shadow Of Financial Crisis," The Developing Economies, Institute of Developing Economies, vol. 46(4), pages 331-362, December.
    • Handle: RePEc:bla:deveco:v:46:y:2008:i:4:p:331-362
    DOI: 10.1111/j.1746-1049.2008.00069.x
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    4. Yang Fuming & WeiLun Huang & Liu Xiaojing, 2022. "Micro- and small-sized enterprises’ willingness to borrow via internet financial services during coronavirus disease 2019," International Entrepreneurship and Management Journal, Springer, vol. 18(1), pages 191-216, March.

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