Financial problems of SMEs and solution proposals: A research in Shirvan

The purpose of this thesis is to investigate the financial problems encountered in SMEs and to offer solutions to these problems. In line with the stated purpose, the study was carried out as Survey research in Shirvan, Azerbaijan. The data of the study was collected with the questionnaire, which is one of the qualitative data collection methods, and the SPSS statistical package program was used in the analysis of the data. Small and Medium Sized Enterprises (SMEs) have an important place in the economic development of countries and ensuring sustainability in their growth. In this context, providing growth, development and incentives in SMEs is an important factor in ensuring vitality in the economy of the countries. However, at this point, in today's conditions, SMEs cannot work regularly due to many reasons and therefore they make a limited contribution to the national economy (Hacıevliyagil, 2016: 32). Financial problems are at the top of the problems faced by SMEs. Among these problems, the inability to follow the developments in the financial world closely, restrictions in auto financing opportunities, collateral problems in loan purchases, high costs of loan repayments. Experiencing such problems affects the strengthening of the financial structures of SMEs and causes a decrease in their level of competition (Kutlu ve Demirci, 2007: 187). The study consists of three parts. We will mention literature review on SMEs in the first part, financing problems in SMEs in the second part and an application in Shirvan, Azerbaijan in the last part of the study.