Venture capital (VC) has been accepted to play an important role in encouraging of
entrepreneurship, maintaining technological improvement and, urban and regional
development in the country besides providing financial support for small and
medium size enterprises (SMEs) with high growth potential.
This thesis analyzes the reasons of the limited venture capital investments in
Turkey and the measures that should be taken in order to increase both the
effectiveness of VC in maintaining urban and regional development and VC
investments to SMEs. Furthermore, VC is emphasized to be an important model
that can be efficient in solving the financing, management and technical problems
of SMEs with high growth potential.
In order to analyze the problems, a field research was conducted. Research consists
of two parts. In the first part, the questionnaire was conducted with 100 SMEs in
Ankara that are active in OSTIM so as to reveal the general characteristics of
SMEs and the funds they use to solve their financial problems in start-up and
expansion stages. SMEs are generally family run firms that have limited capital
and whose owner is also the manager in the firm. Equity capital is the most
important source that is used in the start-up and expansion stages by the firms.
The rate of usage of subsidies like investment and export incentives and technology
development support, credit guarantee fund and venture capital by these firms is
low. Lack of knowledge, insufficiency of qualified staff and bureaucratic barriers
are the most significant reasons of this situation.
In the second part, interviews with venture capitalists or managers of 3 important
VC firms that are active in Turkey come up. These interviews aimed to reveal the
goal of VC firms, evaluation process of the applications and VC firms&rsquo / expectations from SMEs. VC firms face difficulties with the projects with no
growth potential. Moreover, applicant firms do not have adequate staff and
supplies in order to prepare the financial information for the application process,
and this happens to be a crucial problem.
According to the results of the field research, some suggestions are tried to be put
forward in terms of the achievement of a more effective use of VC system in
Turkey. In this regard, firstly, efficiency of subsidies-particularly institutions that
provide R& / D supports- should be increased. Secondly, Credit Guarantee Fund
should be strengthened in order to provide more entrepreneurs with guarantee
support. And finally, establishment of a center that is to provide consultancy for
applicant firms in their project development and application periods is suggested.
| Identifer | oai:union.ndltd.org:METU/oai:etd.lib.metu.edu.tr:http://etd.lib.metu.edu.tr/upload/3/12606985/index.pdf |
| Date | 01 December 2005 |
| Creators | Pala, Gokcen |
| Contributors | Pinarcioglu, Melih |
| Publisher | METU |
| Source Sets | Middle East Technical Univ. |
| Language | English |
| Detected Language | English |
| Type | M.C.P. Thesis |
| Format | text/pdf |
| Rights | To liberate the content for public access |
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