The Survival Rates of SMEs in Turkey and the Conceptual Framework of Factors Affecting IT

Department Of International Logistics And Transportation Yeditepe University, Istanbul, Turkey ,Erkut Akkartal

doi:10.47191/ijcsrr/v4-i10-17

Department Of International Logistics And Transportation Yeditepe University, Istanbul, Turkey , Erkut Akkartal

Open Access

https://doi.org/10.47191/ijcsrr/v4-i10-17

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Abstract

SMEs are vitally important enterprises as they are a source of income and employment in both developed and developing economies. However, despite their importance, only a small part of them survive for many years. Therefore, identifying the factors that enable SMEs to survive will play an important role in attracting entrepreneurs’ attention and encouraging them to take steps to ensure the survival of their enterprises. In the literature, these factors are considered independently of each other. In this context, there is a gap in the literature that requires to demonstrate the relationship between these factors. This article aims to contribute to the literature by identifying factors affecting the survival of SMEs in Turkey and providing a conceptual framework that explains their relationships. In the proposed framework, managerial practices, entrepreneurial traits, market adaptation, growth management and finance management were considered as the main constructs. If this conceptual framework, which was revealed as a result of field observations and detailed literature reviews, is empirically supported by further studies, it can create an alternative perspective that will inspire SME owners in Turkey to keep their companies alive for years.

Highlights

Small and medium-sized enterprises (SMEs) are the main driving forces for the development of economic and social welfare
When we look at Turkey, 55.1% of exports and 37.7% of imports were carried out by SMEs constituting 99.8% of all firms in 2014 (Kaya and Uzay 2017)
Managerial practices, finance management and SME survival Finance management is about the disciplined skillful management of pricing and cash flow on the one hand, and the ability to access the financial resources needed for growth on the other

Summary

INTRODUCTION

Small and medium-sized enterprises (SMEs) are the main driving forces for the development of economic and social welfare. As an example to the developing countries, SMEs in Turkey is being addressed and the factors affecting the survival of the companies are set forth. Three and five-year survival rates of enterprises, business economy 2018 (%) Source: Eurostat (online data code: bd_9bd_sz_cl_r2) Based on these data, it can be argued that, SMEs in Turkey experience serious survival problems due to some firm and industry specific factors and this situation is closely related to economic and social life in the country. In this context, many factors affecting the sustainability of SMEs have been studied in the literature before. Highfield and Smiley (1987) found that low macroeconomic growth rates, low interest rates and high unemployment increased new entry rates

THE PROPOSED CONCEPTUAL FRAMEWORK

CONCLUSION

Findings

IMPLICATIONS FOR FUTURE STUDIES