Microfinance Gateway>Access to Credit: Microenterprises in Turkey

affiliate language sites: Français عربي Español

Home

Library

Jobs

Training and Events

Organizations

Consultants

Library » Access to Credit: Microenterprises in Turkey

Access to Credit: Microenterprises in Turkey
May 2009, Duman, A.

Analyzing determinants of access to credit

This paper analyzes determinants of access to credit in Turkish microenterprises. The study uses a dataset covering most of the microenterprise sector in the country.

Access to external finance for small and medium enterprises is vital for survival and growth of microenterprises. In Turkey, the likelihood of the self-employed in the informal sector experiencing wealth and credit constraints is high. Access to external finance, either in terms of start-up capital or in terms of a loan, is very limited. Turkish firms are heterogeneous; some show signs of dynamic growth and others seem to be doomed for bare survival. Controlling for firm, entrepreneur and sector characteristics, the study finds that:

Being formal implies higher access to the formal credit market;
Formal credit enhances higher average capital productivity in terms of higher monetary returns in comparison to informal credit borrowers;
Informal and formal small firms are structurally different.

Although the small firm segment is dominated by informal enterprises, formal firms of very small size do exist. Their characteristics and the environment they operate in are not the same as that of informal enterprises.

Add Review


*First Name:		*Last Name:
Organization:
*Email:
*Country:
(rollover stars to select rating)
Review Title:

Review Text:
I do not want my name, email, or organization to appear with my review. (Country will always appear with posted reviews.)

By clicking "Submit" you confirm that you have read and consent to our Privacy Policy and Terms and Conditions.

Download this Document

Journal Volume/Pages:
16

Publisher(s):
Izmir University of Economics