Abstract
Financial inclusion is the most recent item to be added explicitly to the social inclusion agenda and promotes the need for access among all segments of society to a range of financial services at affordable cost. Small and medium-sized enterprises (SMEs) have played a crucial role in boosting the economy, increasing employment, and creating industries. However, many SMEs in developing economies lack access to loans and lines of credit. With global financial crisis, developing economies have started to promote financial inclusion, especially greater access to financial services for SMEs, as part of their overall strategies for economic and financial development. In this perspective, this study provides a survey of progress on financial inclusion in Turkey on the basis of SMEs. DOI: 10.5901/ajis.2015.v4n1s2p269
Highlights
In recent years, financial inclusion has been a global agenda
Morgan and Pontines (2014) found some evidence that an increased share of lending to Small and medium-sized enterprises (SMEs) aids financial stability, mainly by reducing non-performing loans and the probability of default by financial institutions. This suggests that policy measures to increase financial inclusion, at least by SMEs, would have the side-benefit of contributing to financial stability as well
High interest rates, on credit are perceived the biggest concern in using external funding affecting more SMEs in 2013 compared to 2 years previously
Summary
Financial inclusion has been a global agenda. Many countries are employing financial inclusion as an important part of their strategies to achieve inclusive growth. It is important to have a positive enabling environment for promoting financial inclusion. This means that policies that support financial inclusion have to be closely connected with the pursuit of macroeconomic stability. Policy measures to increase financial inclusion by SMEs will have the side-benefit of contributing to financial stability. From this perspective, this study contributes to the literature on this subject by examining the financial inclusion in Turkey on the basis of SMEs. In order to achieve this, the paper is organized as follows.
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