Development Agencies, Grant System, and Financial Support for SMEs in Turkey

Literature Review

Main important developments observed in World economy regarding regional development and economical geography is the fact of localisation tendencies in economy and urban economies. While experienced developments in communication, transport, technology in the process experienced decreases importance of traditional parameters of settlement theory such as raw material and proximity to markets, it becomes possible that a product produced at any region of the world is able to be sold in any region of the world. (Kaya, 2007)

Development process is the result of acquisitions that countries obtained from historical process they passed. Institutional infrastructure of countries in historical process has a big share in forming of their institutional structures today. Tabellini suggests in his study that beside that institutional culture is formed by the effects of institutional culture, regional development is also in a firm correlation with past in the same way. In the same way it is suggested that with the reason of low labour force efficiency, economically disadvantaged regions cannot advance through income transfer, that poor regions in terms of economy and culture need to benefit from education investment, from cheap financing source born with local initiative and from localization of government. (Tabellini, 2014)

The sensibility of economy management in Turkey to manage and decrease debt stress of country has lead that the fact of growth remained at the second plan. Rational distribution of sources relevant with the concept of growth and productivity in production cannot be ensured. That Turkey adopts growing depending on production and efficiency as a strategy is urgent. With this reason, necessary regulations to make performance of growth stable in short term is needed. Sufficient condition is the establishment of R&D and industrial infrastructure based on human capital as a requirement of definition of sustainable growth. (Yiğidim, 2012)