Effects of tax incentive components on investment of small and middle scaled enterprises (Analysis of after 1990 period)

The importance of the small businesses has been increasing day by day since 1990. Another issue gaining importance nowadays is tax incentives. In this study, the effects of the tax incentives over the small businesses are evaluated with the statistics prepared by The Duties of an Undersecretary of Treasury. The nominal values of the incentive certificates are analyzed after they are recalculated by inflation, exchange and revaluation rates to remove the effects of the chronicle inflation in Turkey. The study that examines the effects of the tax incentive components over the investments is not concluded clearly due to the statistical insufficiencies and the serious economical instabilities during the last 10 years. Nevertheless it is found out that the investment decisions of the investors are directly proportional with the economical conditions rather than the tax incentives. In a nutshell, it is determined that the effects of the incentive components are insufficient, in addition there is not any definite program about investment incentives, moreover, the incentives are not so persuasive for investing.