Promoting the role of small and medium sized enterprises in export led industrialization: Taiwanese and Italian experiences and Turkish case

Abstract

This research analyses the role of small and medium sized enterprises (SMEs) in Turkey, where an export led growth model is followed in the light of Taiwanese prгıctice. It also examines the alternative ways of exporting for SMEs and their appropriateness to Turkish industry. In this perspective, a broad approach was adopted to consider the role of SMEs in GNP, industry, exports. In addition, the importance of SMEs on employment creation and other aspects of the economy weis presented. SMEs unlike large scale exporters, do have some problems in exports. In this respect the structural problems of SMEs in exports and related government policies for these enterprises were discussed. There is no unique way for a SME to participate in export activities. Among several alternatives, exporting via a trading house through international subcontracting, producing for an indigenous exporter or by direct involvement in exports are the main ones discussed and their consequences on Turkish SMEs considered. Furthermore, factors that lead to a specific model were examined benefiting from the Taiwanese and Korean experiences. Finally, the Italian Federexport model and a latest proposed model in Turkey were discussed in the framework of joint export organizations.