Factors affecting SMEs production in Turkey: A panel data analysis

In developed and developing economies Small and Medium Sized Enterprises (SMEs) play significant roles as in Turkey. In this perspective 99.8% of the total number of enterpreunerships, 73.5% of total employment and 57.8% of GDP belongs to SMEs. Nevertheless in Turkey most of studies about SMEs do not use micro data because of lack of data. The aim of our study is explaining the variable production of SMEs with independent variables number of employees, export value and spending in R&D in TL with micro data taken from TUIK. 86 firms are tested with balanced panel data. Since most of firms have no export or R&D department number of firms decrease. After appliying fixed and random effect models Hausman Test is performed. The results show that only number of employees is significant.