The evaluation of SME exchange markets development in the world and Turkey perspective: The financial performance comparison of companies for the period before and after quotation Istanbul Stock Exchange (BIST) emerging companies market (GIP)

Small and Medium Businesses (SMB) have attracted the attention for the reasons that they have dynamic structures, able to adapt quickly to changing conditions and their significant contribution to the economy both in our country and world. The weight in the economy of SMEs' which make up approximately 99% of the total business is not in sufficient size. One of the reasons is the inability of SMEs reaching finance according to large businesses. Due to their low credibility SMEs can find high interest rate finance and this make it difficult for them to adapt to an increasingly competitive and rapidly changing market conditions. Therefore, SMEs' as well as the higher cost of conventional funding sources, they entered into the quest to benefit from an alternative source of funding. For our country and the world one of the most important alternative sources of financing SMEs' created is the SME Exchange Markets. In the World this system is applied for many years but in our country it has begun to new practices. Due to not allow the listing requirements of large enterprises the idea of SME Exchange has been developed and implemented. The topics explained in the theory part are: The SMEs place and importance in the economy, their problems and promotions of the state for these problems, The Historical development of SME Exchanges in the world and our country and a support program of goverment to increase the interest for SME Exchange which is called KOSGEB Emerging Companies SME Stock Exchange Support Program In the application part the financial data for the periods before and after stock market of 19 businesses in the Emerging Companies Exchange Market have been analyzed. In this context, liquidity, operations, financial structure, profitability and Z-Score ratios were calculated and compared to investigate the effect of the stock market. In conclusion, after the financial analyzes among the majority of the companies in the stock exchange ıt could be figured out that the stock market has positive effect on the liquidity and financial structure of the companies. Also the future bankruptcy risk has been slown down but the data failed to reach any meaningful results that demonstrate the contribution to the profitability of the business increase or decrease. Key Words: SME, Alternative Funding, SMEs Stok Exchange, Emerging Companies Stock Market (ECM)