Obstacles to growth for small and medium enterprises in Turkey, Vol. 1 of 1

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Obstacles to growth for small and medium enterprises in Turkey

Author:	Seker, Murat; Correa, Paulo Guilherme;	Collection Title:	Policy Research working paper ; no. WPS 5323
Country:	Turkey;	Date Stored:	2010/05/27
Document Date:	2010/05/01	Document Type:	Policy Research Working Paper
Language:	English	Region:	Europe and Central Asia
Report Number:	WPS5323	SubTopics:	Achieving Shared Growth; Small Scale Enterprise; Access to Finance; Emerging Markets; Microfinance
Volume No:	1 of 1

Summary: 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 the slowest 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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