The Financial problems of the small and medium scale firms and as a method of solution the model of venture capital

The main problems that threaten small and medium scale firms are largely financial ones. During 1950s, due to the inadequate support provided by traditional financial techniques to small and medium scale firms, venture capital system has emerged in USA. Since the 1980s, it has gained popularity among the Europen countries. Venture Capital is in fact a system of collectivity. This system brings together young enterpreneors who have prespective and promising projects and ideas in their minds, and venture capitalists who would finance these projects. Throughout our survey, we will deal with the financial problems of small and medium scale firms and the current situation of the venture capital both in Turkey and abroad.