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Obstacles to growth for small and medium enterprises in Turkey

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Author Info

  • Seker, Murat
  • Correa, Paulo Guilherme

Abstract

Many studies have shown that firm growth decreases monotonically with size and age. In this study, the authors investigate employment growth of firms in Turkey with an emphasis on small and medium size enterprises. In Turkey, small and medium size enterprises account for almost 77 percent of employment and play a crucial role in the economy. However, the analysis of firm dynamics in Turkey shows that medium-size firms (51-250 workers) are theslowest growing group in the economy. Moreover, small and medium size enterprises grow at a slower rate in Turkey than in several comparator countries in the Eastern Europe and Central Asia region. After determining this irregularity, the paper analyzes how the investment climate affects firm growth and finds that improved access to finance is the most important factor that significantly increases firm growth rates.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 5323.

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Date of creation: 01 May 2010
Date of revision:
Handle: RePEc:wbk:wbrwps:5323

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Related research

Keywords: Microfinance; Achieving Shared Growth; Small Scale Enterprise; Access to Finance; Emerging Markets;

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Cited by:
  1. Nurrachmi, Rininta Nurrachmi & Abd Samad, Khairunnisa & Foughali, Ibrahim, 2012. "The Development of SMEs in Turkey," MPRA Paper 46817, University Library of Munich, Germany.

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