International Journal of Academic Research in Business and Social Sciences January 2015, Vol. 5, No. 1 ISSN: 2222-6990 27 www.hrmars.com Financial Problems of Small and Medium-Sized Enterprises in Turkey Durmus Cagrı YILDIRIM  Ozlem TOSUNER UNAL* Ayfer GEDIKLI**  Assistant Professor., Recep Tayyip Erdoğan University, Banking and Finance Email:cyildirim81@gmail.com *Öğr. Gör.,Recep Tayyip Erdoğan University, International Trade and Logistic Email:ozlem.tosuner@gmail.com **Associate Professor, İstanbul Medeniyet Universitesity, Economics Email:ayfer.gedikli@medeniyet.edu.tr DOI: 10.6007/IJARBSS/v5-i1/1397 URL: http://dx.doi.org/10.6007/IJARBSS/v5-i1/1397 Abstract The main of this paper is to examine the access to finance as one of the major problems faced by SMEs in Turkey. After discussing the current status of SMEs in Turkey, their difficulties in the context of the financial crisis, their current importance in Turkish economy and as an example of policy implication Credit Guarantee Fund will be discussed. In our study, we attempted to show the effectiveness of the Credit Guarantee Fund in access to finance opportunities for SMEs during the period 1990-2013/2014. Since 2006 when the efficiency of CGF has increased, structural break was found in commercial loans series. Thus existing of a significant impact of CGF on commercial loans has been showed. Also, during the related period, Granger Causality method revealed that an increased in commercial loans have an impact on new investments. As a result, it has been concluded that CGF by increasing the volume of commercial loans contribute to the country’s current capital stock. Keywords: SMEs, Financial issues, Commercial Loans, Fixed Capital Formation, Credit Guarantee Fund Introduction Small and medium-sized enterprises (SMEs) play an important role in sustaining competitiveness in the economy, providing employment, entrepreneurial improvements and as a tool of regional development. SMEs, due to their flexible structures, can adapt quickly to innovations, capable of responding to small variations in demand and are able to assess opportunities faster (Emir and Eyüboğlu, 2010). Despite holding a large share in Turkish economy, the differences between Turkish and developed countries’ SMEs can be seen in their levels of investment and technology, R&D,