In this study, the place of small and medium enterprises (SMEs) in the economic and social system with their quantitative and qualitative characteristics is explained along with the importance of entrepreneurship in Turkey and in the world. The present situation with action-plans taken, the advantages and disadvantages and the supporting institutional environment of the SME sector, which builds up 98.8% of total enterprises, 45.6% of total employment and 26.5% of total value-addition in Turkey, are clarified. On the path to European Union Membership of Turkey, the recommended industrial policies and their effects on Turkish SMEs are explained. Finally, considering the internal and external dynamics of Turkey and current status of SMEs, specific strategies are evaluated in order to increase their efficiency, value-addition and competitive advantage in the global arena
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