Abstract

Restructitring efforts in tire world economy since the 80\'s have brought small and Medium-sized Enterprises (SMEs) once more to the stage. Accordirrg to the wiev that nowadays SMEs represent an important source of load and regional dynamism and that the development is above all local matter, SMEs should have been promoted in order to create employment, stimulate competition and innovation and to provide better working environment in developing economies. This article aims to discuss and criticize different approaches on SMEs about their role in economic development and test this view by taking the Turkish experience since 1980 as a case study. It is based on the argunent that presence of SMEs in a region does not necessarily mean development without taking the company strategies of large firms based on international subcontracting into account. The Turkish experience according to this article shows that SMEs in an export-oriented development environment which aims to integrate into global value chains can not much contribute to the development problems of the country.

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