The Impertant of investment decision in SME and case study (feasibility study)

Xll SUMMARY As looked at the evaluation of the Small and Medium Size Enterprises (SME), it can be seen that they played great role in economy and countries' industry and industrialization process. SMEs have great importance in Turkey with respect to their numbers, employment rate, rate of production in the industry and rate of its production in GNP. Because of being open to global competition the SME must develop investment strategies with respect to the condition of competitive economies. As long as the investment decisions rely on to more systematic, planned and measurable criteria, this decision is the largest step for the continuity and development of SME existence. SMEs decide among the alternative investment plans by ordering with respect to their degree of importance and allocate scarce resources to the selected investment plan. For an effective decision giving process they should improve a method with defined criteria. Paper-cardboard sector, especially the corrugated board industry is one of the most open sector to improvements. There is not an enterprise working in the corrugated board production or packaging in regional manner. In the feasibility study of a corrugated board enterprise, technical and financial analysis will be helpful to give rational decision for the investment. In this study determination of status and importance SME in the economy and investigation of SME's investment decision processes are aimed. For this reason at first SME concept, status and importance of SME in the Turkish economy and properties of SME are examined in the first and second part. In the third part investment decision processes for the SME are examined. At last, in the fourth part, the selected paper-cardboard sector is examined and then the study is resulted with a feasibility practice in this sector.