World Bank2013-01-292013-01-292011-08https://hdl.handle.net/10986/12211Facilitating the growth of Small- and Medium-sized Enterprises (SMEs) is central to creating jobs for an underutilized and growing labor force in Turkey as SMEs account for 79 percent of jobs in Turkey. Creating jobs for Turkey's unemployed and for the rapidly growing labor force, though partly a social challenge, is an important economic opportunity. Turkish SME growth performance and productivity is currently poor, and these related challenges must be simultaneously addressed. First, Turkish SMEs grow slower than both large enterprises in Turkey and SMEs in comparator countries. Second, not only are SMEs in Turkey less productive than larger firms, but the gap across firm size is larger in Turkey than in other countries. Although growth and productivity may be affected by different aspects of the business environment, productivity is needed for firms to be competitive and thus be able to sustain growth in the long term. Therefore, growth and productivity must be simultaneously addressed to enable the sustainable creation of well paying jobs. The two main priorities for SMEs are: a) access to finance, and b) the ability to adopt and use technology and to innovate, and this report addresses these topics. The main constraint for the growth of SMEs is access to finance, and new microeconomic evidence shows that the development of medium term finance contributes significantly to SME performance in terms of employment, sales, and investment. Specific interventions in the form of credit guarantees and credit line financing of financial institutions dedicated to support SME financial products have been used to speed up the development of the SME medium term credit market, and they may continue to play a role.en-USCC BY 3.0 IGOACCESS TO CREDITACCESS TO FINANCEACCOUNTS RECEIVABLEADVANCED ECONOMIESAGRICULTURAL SECTORAGRICULTURAL SECTORSASYMMETRIC INFORMATIONBALANCE SHEETBANK COMPETITIONBANK CREDITBANK CUSTOMERSBANK FINANCINGBANK LOANBANK LOANSBANKRUPTCYBANKRUPTCY LAWBANKSBARRIER TO FINANCEBIASESBOND MARKETBOND MARKETSBORROWERBORROWINGBUSINESS ACTIVITIESBUSINESS INCUBATORSBUSINESS PLANBUSINESS PLANSBUSINESS RISKSBUSINESS SUPPORTCAPACITY BUILDINGCAPITAL ADEQUACYCAPITAL CONSTRAINTSCAPITAL FINANCECAPITAL MARKETCAPITAL MARKETSCASH FLOWSCENTRAL BANKCOLLATERALCOLLATERALSCOMMERCIAL BANKSCOMMODITY EXCHANGESCONSUMER CREDITCONSUMER FINANCECORPORATE BONDCORPORATE BOND MARKETCORPORATE BOND MARKETSCORRUPTIONCREDIT BUREAUCREDIT BUREAUSCREDIT CARDCREDIT GUARANTEECREDIT GUARANTEESCREDIT HISTORIESCREDIT HISTORYCREDIT INFORMATIONCREDIT LINECREDIT LINESCREDIT MARKETCREDIT MARKETSCREDIT RATIONINGCREDIT REGISTRIESCREDIT REGISTRYCREDIT REPORTSCREDIT RISKCREDIT SCORESCREDIT SCORINGCREDITORCREDITORSCREDITWORTHINESSDEBTDEBT COLLECTIONDEBT SECURITIESDEBTORSDEBTSDEMAND FOR CREDITDEPOSITDEPOSITSDEVELOPMENT BANKDEVELOPMENT OF FINANCEDOMESTIC CORPORATE BONDECONOMIC COOPERATIONECONOMIC DEVELOPMENTECONOMIC GROWTHECONOMIC OPPORTUNITYECONOMIC POLICYEMPLOYEEEMPLOYMENT GROWTHENFORCEMENT MECHANISMSENTERPRISE CREDITENTERPRISE PERFORMANCEEQUALITYEQUITY CAPITALEXCHANGE RATEEXPENDITUREEXPENDITURESEXTERNAL CAPITALEXTERNAL FINANCEFINANCE COMPANIESFINANCIAL DEVELOPMENTFINANCIAL INFORMATIONFINANCIAL INSTITUTIONFINANCIAL INSTITUTIONSFINANCIAL INTERMEDIARIESFINANCIAL LIABILITIESFINANCIAL PRODUCTSFINANCIAL SECTOR ASSESSMENTFINANCIAL SECTOR DEVELOPMENTFINANCIAL SYSTEMFISCAL DEFICITFISCAL DEFICITSFIXED COSTSFORECLOSUREFOREIGN CURRENCIESFOREIGN CURRENCYFORM OF CREDITFORMS OF COLLATERALGENDERGOOD CREDITGROSS DOMESTIC PRODUCTGROUP OF FIRMSGUARANTEE FUNDGUARANTEE SCHEMEGUARANTEE SCHEMESGUARANTORSHIGH INTEREST RATEINDICATORS OF ACCESSINFLATIONINFORMAL ECONOMYINFORMATION ASYMMETRIESINFORMATION ASYMMETRYINFORMATION SHARINGINSTITUTIONAL INVESTORSINSTRUMENTINTELLECTUAL PROPERTYINTEREST RATEINTEREST RATESINTERNATIONAL FINANCIAL STATISTICSINVESTMENT CLIMATEINVESTMENT DECISIONSINVESTMENT FINANCEINVESTMENT PLANSJOB CREATIONJOB OPPORTUNITIESKEY CHALLENGELABOR FORCE PARTICIPATIONLABOR MARKETLEGAL FRAMEWORKLEGAL RIGHTSLENDERLENDERSLINE OF CREDITLIQUIDITYLIQUIDITY RISKLIQUIDITY RISKSLOANLOAN AMOUNTSLOAN APPROVALLOAN APPROVAL PROCESSLOAN FUNDSLOAN SIZELOANS TO ENTERPRISESLOCAL CURRENCYMACROECONOMIC POLICYMARKET DEVELOPMENTMATURITYMEDIUM TERM BONDSMICRO ENTERPRISESMONETARY FUNDMORAL HAZARDMOVABLE COLLATERALNEW BUSINESSNEW MARKETSNOMINAL INTEREST RATEOBSTACLES TO GROWTHOUTREACHPAYMENT HISTORYPAYMENT SERVICESPENSION FUNDSPERSONAL ASSETSPLEDGESPORTFOLIOPRIVATE CREDITPRIVATE INVESTMENTSPRODUCTION CAPACITYPROFITABILITYPROPERTY RIGHTSPUBLIC BANKSPUBLIC CREDITREAL ESTATEREAL ESTATESREAL INTERESTREAL INTEREST RATERECESSIONREGISTRATION SYSTEMSREPAYMENTRISK MANAGEMENTRISK OF DEFAULTRISKY BORROWERSSALES GROWTHSAVINGSSAVINGS RATESMALL ENTERPRISESMALL ENTERPRISESSMALL LOANSOCIAL SECURITYSOLVENCYSTOCK EXCHANGESUPPLY OF CREDITT-BILLT-BILL RATETAXTECHNICAL ASSISTANCETERM CREDITTRANSACTIONTRANSACTION COSTSTRANSACTIONS COSTTRANSACTIONS SYSTEMSTRANSPARENCYTREASURYTURNOVERUNEMPLOYMENTUNIONVENTURE CAPITALVENTURE CAPITAL INVESTMENTWOMANWOMAN ENTREPRENEURWORKING CAPITALWorld Bank10.1596/12211