SMEs in Turkey: In the context of regional dynamics and sectoral effects

Abstract

SMEs in Turkey: In the context of regional dynamics and sectoral effects Nowadays, the economic performance of regions and sectors in Europe gains more importance. Especially where the labor intensive industries are in a majority, local SMEs' competition and innovation power has a particular significance for these regions' economic performance. This subject is also important for Turkey. In this study, we aim to determine the sectoral and regional variables that affect the SMEs policies. The results of a survey, conducted with 1,200 SMEs operated in ten sectors of twenty five organized industrial zones in twelve cities, are interpreted. Variance analysis (ANOVA) is conducted to see whether these SMEs' firm policies are significantly across regions and sectors. The variables are the change in the demand for skilled and unskilled labour, investment strategies, investment sources that used in innovative activities and desired results of investments. Results indicate that the firm policies are affected by regions and sectors that SMEs belong to.