Resource requirements of SMEs and available facilities in the international financial markets

In all studies over SMEs, it is seen that resource requirements and related issues are the major problems. With this dissertation, it is aimed to contribute to the competitiveness of SMEs through determination and solution of problems in resource requirements and their rate of access to international financial markets.It is hypothesized that one of the major problems of SMEs is resource requirement and its accessibility, the insufficiency of access to domestic resources as well as to international resources for the solution of the issue and without the effective access and use of international financial resources, the related issues of SMEs will not be resolved.In this study covering the reasons of SMEs? resource requirements and how they are satisfied, to what extent access to international financial markets is achieved, and the related issues and their potential solutions, only companies which are determined to be SMEs are considered. Survey technique is applied for SMEs operating in Ankara, and banks operating in Turkey.Primarily, literature research is completed. Then, with the application of survey to SMEs and banks, the hypothesis is tried to be verified. Resource requirements and its reasons and potential solutions are mainly derived from survey results with SMEs and banks.In recent years, the portion of SMEs? in banking system shows an increasing trend. In total bank cash loans, SME loans reached to 23% as of October 2010.As of same date, bank cash loans in foreign currency is 22% of total SME loans. These loans are comprised of both banks? own, domestic resources and international resources. Banks and other financial institutions located in Turkey act as mediatory parties for international resources. Although, guarantee from treasury was required for the majority of these loans previously, no related application is required recently.Between 1999-2008, the guaranteed loan amount provided for SMEs from international resources is about $ 5.1 Billion. In recent years, external debt of private sector has shown significant increase, going over the level of public sector in total external debt. As end of 2009, external debt of private sector has reached to $171.5 Billion, $127.3 Billion of which is long term, over a total external debt of $268.2 Billion of Turkey.Even though there are significant improvements in solution of SMEs? resource issues, there is still place to grow. It is concluded that, SME issue can be solved under a national policy, primarily with the contribution of the government, when effective precautions are taken in coordination with SMEs, mediatory parties, and other related institutions