1. SME Development Issues from SME Perspective
Dr. Özer Balkız
Deputy Secretary General
MÜSİAD
Turkey
February 13, 2017

2. Outline of the Presentation
Importance of the SMEs for the economies
Expectations of SMEs about financing
Activities related to SMEs by MÜSİAD
SMEs’ assessments for the year 2016
SMEs’ expectations for the year 2017
About MÜSİAD
Problems confronted by SMEs
Conclusion

3. Importance of the SMEs for the economies
SMEs constitute one of the alternatives for solving the problem of unemployment in the country by providing employment and creating new job opportunities
SMEs contributes the regional development
SMEs have a great deal of weight in economic structure in terms of numerical quantity, production value, employment volume, added value, investment volume and spread of ownership
SMEs are the units that make the market economy based on dynamism and free competition larger.

4. Expectations of SMEs about financing
250 billion TL new credit opportunity through Reel Sector Credit Guarantee Fund will be provided. Collateral structure for the loans provided are respectively 100% for export purposes, 90% for SMEs, 85% for commercial loans. The required funding will be based on the transfers between the items in the 2017 budget and the actual savings.
The Ministry of Industry with KOSGEB cooperation will provide intermediary support to SMEs; thus, 50,000 TL with the maturity of 36 months will be provided for the SMEs with no repayment for the first 12 months.
The negative view in the credit ratings of some businesses will be discussed with the banks for recovery of the credit view and the obstacles to getting credit will be removed.

5. Continue: Expectations of SMEs about financing
The Attraction Centers Program refers to the program to be implemented to support private sector investments through employment, production and export growth in order to reduce regional disparities and to revitalizes the investment climate in relatively less developed regions.
The work that was initiated in order to facilitate access to finance came to the last stage in the number of SMEs in Turkey, about 3 million in order to find a solution to the "collateral" problem
SMEs will now be able to pledge their movements ( physical capital like machines ) when they take out loans from banks. In this context, a new registrar system will be established.
Kard Al Hassan

6. Activities related to SMEs by MÜSİAD
MÜSİAD International Trade Fair, MÜSİAD Visioner for every two year
Sector-oriented work units
Reports and researches for each sector
Business Development
e-MÜSİAD
Experience share meeting
Connectivity between SMEs and government
Business to business meeting
International Business Forum

7. About MÜSİAD
Independent Industrialists' and Businessmen's Association (MÜSİAD) is a "BUSINESSMEN'S ASSOCIATION" founded on May 5, 1990, in İstanbul, Turkey.
It is a strong " CIVIL SOCIETY ORGANIZATON" that offers a reliable and wide business network with its nationwide branch offices, representatives and contact points abroad.
MÜSİAD is the association through its 11,000 members representing 60,000 companies and 1,600,000 people in labour force.
Its members and businessmen through its 86 branches offices in Turkey as well as 181 liasion offices in 68 countries all over the world.

8. SMEs’ assessments for the year 2016
According to the results of the survey conducted by MÜSİAD Economic Research Department
In terms of Turkey's economic situation, how do you evaluate the year compared to the year 2015?

9. SMEs' expectations for the year 2017
How do you expect from 2017 compared with 2016 in terms of economic activity?

10. Problems confronted by SMEs
Difficulties being faced by SMEs can be classifed into following two subcategories such as Internal issues and External issues
Internal Issues
External Issues
Ineffective leadership
Lack of fund channel
Low level of statistics
Tax structure
Lack of a clear aim
Fluctuations in FX market
Less use of Information Technology
Regulatory burden
Capacity constraint
Rapidly technological advancement

11. Conclusion
It is necessary to develop a variety of financing methods for especially SMEs.
Governments are supposed to implement policies that give SMEs extra incentives.
Solid and reliable data related to SMEs should be increased and researches about SMEs should be expanded.
Managerial clarity such as plan, strategy, goal oriented the SMEs should be shared with the employees.