Financing for Turkish Small and Medium-Sized Enterprises: SMEs Restructuring, Business Plans, and Value-Adding Chains as Tools

Before debating the financing for Turkish small and medium-sized enterprises (SMEs), we must understand SMEs. Likewise, Turkish SMEs must learn to understand the concept behind “technical readiness.” Their obstacles may be linked to not having enough money as reserve, not being able to offer collateral, not producing anything that has a “high value,” not having a turnover or balance sheet that is convincing to the local bank manager, or in the case of start-ups, not having a product idea or the required own investment to get going. When talking about innovation, financing is the key obstacle. First, SMEs need to be trained about how to obtain funding and from where; the need for training about how to develop a sound and profitable product or service idea; and training about how to prepare a professional business plan. The originality of this contribution is to link SMEs financing with company restructuring, as I argue that without a streamlined organization, even SMEs will not be able to make good use of the financing once obtained. I argue further that without the promise of restructuring, many lenders will be hesitant to give the funds. On top of that, every start-up must consider their venture as an organization, too. However, SME restructuring differs greatly from that of larger companies as will be explored in detail.