Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

Many studies have shown that firm growth decreases monotonically with size and age. In this study, the authors investigate employment growth of firms in Turkey with an emphasis on small and medium size enterprises. In Turkey, small and medium size enterprises account for almost 77 percent of employment and play a crucial role in the economy. However, the analysis of firm dynamics in Turkey shows that medium-size firms (51-250 workers) are the slowest growing group in the economy. Moreover, small and medium size enterprises grow at a slower rate in Turkey than in several comparator countries in the Eastern Europe and Central Asia region. After determining this irregularity, the paper analyzes how the investment climate affects firm growth and finds that improved access to finance is the most important factor that significantly increases firm growth rates.

Access to Finance --- Achieving Shared Growth --- Business environment --- Credit Line --- Emerging Markets --- Employment --- Expansion --- Finance and Financial Sector Development --- Financial institution --- Financial institutions --- Firm size --- Firms --- Human capital --- Industry --- Job creation --- Lenders --- Licensing --- Loan --- Medium Enterprises --- Medium Scale Enterprises --- Medium size enterprises --- Microfinance --- Poverty Reduction --- Private Sector Development --- Small firms --- Small Scale Enterprise --- SME --- SME sector --- Suppliers