Venture capital and applicability on SMEs

The aim of this study is mentioning whether venture capital financing is an alternative method or not for the small and medium sized enterprises which is funding strapped. In this increasingly tough competitive environment, surviving is very difficult for these small and medium sized enterprises. We tried to find the deficiencies of venture capital investments in Turkey by comparing models of venture capital in the other countries.In this study, the importance of entrepreneurship and the use of venture capital financing method for solving the problems of small and medium sized enterprises which are considered of the lifeblood of the industry in developing countries such as Turkey, was discussed. The methods, those are used in Europe, USA, Japan and the other countries, are examined, the figures of venture capital are compared and venture capital has been researched for a prefeable alternative to other financing methods.Venture capital in our country is not known, so that the applications are remain at very low levels. The researchs also support this. Venture capital has been starting to show activity in Turkey, in the last years. This study? s aim is asisting the small and medium sized enterprises about venture capital. We tried to show that, when its awareness increases, it could be an important financing resource.To objectify this study, crosstables are generated, many hypotheses are tested by chi-square models, answers of the firms, which participate the survey, are compared .According to the findings of the survey, it is seen that, the firms, which has had an idea about venture capital, think positively about venture capital. It also effects the approaches of the firms about Venture Capital Trust.