Financial problems of small and medium enterprises and recomendations for solution: Hatay case

Small and Medium Sized Enterprises (SMEs) are indispensable elements of the national economies with their share in encouraging entrepreneurship, job creation and production. In today's globalizing world, financing is the most important problem for the development of SMEs. In this study, firstly by giving theoretical information about SMEs, a field study carried out in the center of Hatay province to determine the financing problems of SMEs, SME owners and managers to measure the level of information and utilization of alternative financing sources and solutions to the financial problem faced by enterprises recommendations aimed at improving. SPSS 25.0 program was used to analyze the data obtained from the survey conducted on 109 enterprises registered to Antakya Chamber of Industry and Commerce. Frequency and percentage analyzes were performed to determine the distribution of the answers given by the participants to the questions. Chi-square analysis was used to examine the relationships between categorical variables. As a result of this study, the most important problem of the enterprises was identified as financing. It was found that the reasons of financial problems in enterprises are exchange rate, inflation and interest rate uncertainty, negative effects of economic policies and inflation on enterprises, high bank loan rates and increases in costs. Keywords: SME, Financial Problems, SME's in Hatay