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1 . 0 Introduction
Small , and medium-sized companies (SMEs) enjoy a pivotal role in any developed economy and rising market. The growing affect of SMEs in the global economy has reached an unprecedented scale and this daily news aims to jump into the heart of SMEs in Turkey and look at the inherent working device that is the engine for development. SMEs in Turkey could be an increasingly significant feature of the economy, symbolizing 99% of most enterprises in the country. As such, this paper aims to evaluate their job and importance in the European economy, understand defining qualities of the market, and examine key trends for the future. The SME sector in Turkey is identified according to the range of employees, turnover and balance sheet. As such, SMEs are understood to be follows:
Figure one particular: Definition of SMEs
2 . zero The role of SMEs in the Turkish Economy
Accounting for 79% of all career in Chicken, SMEs are central to creating jobs to get an underutilized and developing labour push in the country. Remarkably, SMEs and self-employment can also be one of the simply sources of career for poor people, further putting an emphasis on the importance in the SME sector for work creation.
Traditionally, SMEs have also been generally dependent on the domestic industry. Their strong presence in the country is a result of the competitive advantage arising from their location in Turkey, allowing them to internally produce high-quality goods at a lower cost and gain comfortable access to the European market. In addition , being located in Turkey enables them to gain a strong knowledge of the market, and meet exactly its requirements. Their small size as well allows those to cater to market markets and produce in small volumes, collectively responding to a large pool of the nation's demands.
As Turkey gradually exposed its economic climate to foreign companies, important industries like automobile production and heavy industries expanded rapidly. SMEs fill a crucial gap inside the supply chain by serving as independent contractors to big organizations, thereby assisting the growth of those important European industries.
In recent years, diversification in the SME sector from the domestic market has become progressively important for the continuing growth of the industry, supplying rise to a need for SMEs to internationalise. Hence, this has then triggered increased emergency relating to the implementation of policies to compliment SMEs in internationalizing their particular strategy and operations. European government support is predicated on the recognition that community SMEs are susceptible to market failure and these policies shroud SMEs in a veil of security so as to attain economic development and job creation.
As a member in the Organisation pertaining to Economic Co-operation and Expansion (OECD), Turkey has strived to synchronize efforts pertaining to SMEs to talk to global markets also to integrate in a network of multi-national businesses (MNE). Traditionally, the SMEs in Chicken could be grouped into 4 mutually exclusive categories: foreign provider; exporters; subsidiaries, joint ventures or twigs of MNEs; non-internationalized companies. However , the latest trends have demostrated that there is a combination of both domestic and international activity that interweaves numerous four groups. This provides the ability and expertise to support an even more varied sort of international diamond and focus SMEs in a position of international competitiveness.
With the embrace openness of the Turkish economic climate, there is a relevant need to stability the demands of foreign investors and the capabilities of Turkish SMEs. The rise in the range of foreign firms in the European market provides stymied the growth of SMEs and damaged their production as the larger enterprises dominate SMEs using a larger difference in company size (World Bank, 2011). Henceforth, growth and production of the sector are the two key areas that have being addressed make forth which has a slew of interventions.
References: Regarding IE Singapore. (2012). Gathered from: http://www.iesingapore.gov.sg
Enhancing the competitiveness of SMEs in Chicken. (2012). KOSGEB. Retrieved from: http://www.comcec.org/UserFiles/File/%C3%BClkeraporlar%C4%B1/28_isedak_%C3%BClke_rap/T%C3%BCrkiye.pdf
Organization and Sector: Fact sheet 2012 Turkey
Mohapatra, Sanket., Ratha, Dilip. & Silwal, Ani. The Migration and Remittances Factbook 2011. (2011). Retrieved from: http://siteresources.worldbank.org/INTPROSPECTS/Resources/334934-1199807908806/Singapore.pdf