RELATIONSHIP BETWEEN THE NUMBER OF SMALL AND MEDIUM-SIZED ENTERPRISES OPENED AND CLOSED, AND EMPLOYMENT RATES: THE CASE OF TURKEY

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1 The Journal of Academic Social Science Studies International Journal of Social Science Doi number: Number: 71, p , Autumn II 2018 Araştırma Makalesi / Research Article Yayın Süreci / Publication Process Yayın Geliş Tarihi / Article Arrival Date - Yayın Kabul Tarihi / Article Acceptance Date Yayınlanma Tarihi / The Published Date RELATIONSHIP BETWEEN THE NUMBER OF SMALL AND MEDIUM-SIZED ENTERPRISES OPENED AND CLOSED, AND EMPLOYMENT RATES: THE CASE OF TURKEY AÇILAN VE KAPANAN KÜÇÜK VE ORTA BÜYÜKLÜKTEKİ İŞLETME SAYILARI İLE İSTİHDAM ORANLARI ARASINDAKİ İLİŞKİ: TÜRKİYE ÖRNEĞİ Lect. Selçuk Bakan ORCID ID: Agri Ibrahim Cecen University, Dogubayazit Ahmed-i Hani Vocational School, Department of Foreign Trade, sbakan@gmail.com Abstract Employment is considered among the most important issues by policy makers at the macro and the local level. States try to take some measures to increase employment by instituting various policies. The importance of companies with state institutions increase day by day in terms of increasing employment. Today, small and medium sized enterprises (SMEs) have become an effective economical unit and shares of these enterprises in terms of production, export, added value and investment reached significant numbers. Besides these, SMEs are units that are constantly employed and less affected by economic fluctuations because they can adapt quickly to change and innovation. After the economic crises in the world, large-scale enterprises have begun to decrease in importance, while SMEs have gained great importance in macroeconomic policies due to their economic contribution to many countries, employment and income distribution. SMEs have become more important in establishing employment and competition conditions in many countries. SMEs in Turkey have an important role in the country s economy due to their significant effect on the number of enterprises and employment and is one of the dynamic and fluent elements of the economy. In this study, the aim was to investigate whether there is a relationship between the number of SMEs opened and closed, and employment rates. No statistically significant relationship was determined

2 496 Selçuk Bakan between the number of SMEs and employment rates in the study. The following result has been reached in the study. Employees at a new SME opening are provided by other SMEs. When an SME closes, the employees are employed by other SMEs. Key Words: Employment, SME, Economy Öz İstihdam hem makro hem de yerel düzeyde politika yapıcılar tarafından önemli konular arasında sayılmaktadır. Devletler de çeşitli politikalar üreterek istihdamı artırıcı bir takım önlemler almaya çalışmaktadır. İstihdamın artırılması noktasında devlet kurumları ile birlikte firmaların önemi gün geçtikçe artmaktadır. Günümüzde küçük ve orta büyüklükteki işletmeler (KOBİ) etkin bir ekonomik birim haline gelmiş ve bu işletmelerin üretim, ihracat, katma değer ve yatırım içindeki payları önemli rakamlara ulaşmıştır. Bunların yanı sıra KOBİ ler değişime ve yeniliklere hızlı bir şekilde uyum sağlayabildikleri için istihdamı sürekli olan ve ekonomik dalgalanmalardan daha az etkilenen birimlerdir. Dünyada peş peşe yaşanan ekonomik krizlerden sonra büyük ölçekli işletmelerin önemi azalmaya, KOBİ ler ise çoğu ülkede kaynakların ekonomik kullanımı, istihdam ve gelir dağılımına olan katkıları nedeniyle makroekonomik politikalarda büyük önem kazanmaya başlamıştır. Birçok ülkede istihdam ve rekabet şartlarının oluşturulmasında KOBİ ler daha önemli hale gelmiştir. Türkiye de KOBİ ler işletme sayısı ve istihdamdaki büyük paylarından dolayı ülke ekonomisinde önemli bir yere sahiptir ve ekonominin dinamik ve sürükleyici unsurlarından biridir. Bu çalışmada Türkiye de açılan ve kapanan KOBİ sayıları ile istihdam oranları arasında bir ilişkinin olup olmadığı araştırılmıştır. Araştırma sonucunda KOBİ sayıları ile istihdam oranları arasında istatistiksel olarak anlamlı bir ilişki saptanmamıştır. Çalışmada aşağıdaki sonuç elde edilmiştir. Yeni bir KOBİ açılışında çalışanlar diğer KOBİ lerden sağlanmaktadır. Bir KOBİ kapandığında ise çalışanlar başka KOBİ'ler tarafından istihdam edilmektedir. Anahtar Kelimeler: İstihdam, KOBİ, Ekonomi 1. Introduction Employment and unemployment, with various dimensions, are today one of the biggest financial and social problems related to the whole world including hunter and collector tribes or information societies (Tatar, 2006: 1). Employment, the dictionary meaning of which is working or employing, in broad sense indicates the extent to which all production factors are used in economy in a certain period according to the technological level. In narrow sense, it defines only the use of labour among production factors. Full employment, which is one of the employment types, is a situation in which everybody who wants to work at the current wage finds a job, and all available production factors are used in the most efficient way and included in the production. As for overemployment, it is the factor use of production factors in an economy over their capacity, and underemployment is the insufficient use of the current factors. While overemployment causes an increase in labour cost, underemployment causes unemployment. Combination of both employment leads to instability (Yıldırım & Özer, 2006: ). Unemployment caused by underemployment is defined as the situation of a country in which people who have the working ability and who want to work at current wage cannot find a job. Unemployment is the state of people who have skills to work and want to work for current wage level not being able to find jobs in a country. In other words, it is defined as the difference between the level of labor force and the portion of labor force that finds jobs and works (Zaim, 1997: 169). According to the criteria of International Labor Organization (ILO), people who are part of the active labor force, qualified to work, who are actively searching for jobs and people without jobs are considered unemployed (Sorrentino, 2000: 4). According to Turkish

3 Relationship Between The Number of Small and Medium-Sized Enterprises Opened and Closed, And Employment Rat..497 Statistical Institute (TSI), of people who were unemployed (who did not work in a job for profit allowance, salary earner or wageless and who do not have a link to such a job) during the reference period, people who used at least one of the job search channels in the last three months to search for jobs and who are capable of starting to work within two weeks and are in the period to work in anoninstitutional environment are included in the unemployed population. Employment and unemployment aspect is one of the most important indicators of the economic and social development levels of all developed and developing countries. In particular, the production systems of the countries with developing technologies also change, and when the workforce cannot keep up with this change and when the population increase is added to this problem, the employment opportunities decrease (Güney, 2009: 135). As a result, constantly increasing employment rates in the world decrease according to population growth (Eker, 2011: 24). Like many countries in the world, unemployment is one of the most important problems which prevent economic and social development in Turkey. In general, the unemployment problem in Turkey seems to be caused by factors such as lack of sufficient response of labor force qualification to rapid population growth, the low level of capital accumulation and investments, and the inability to meet the need for qualified labor resulting from increased competition (Alancıoğlu &Utlu, 2012: 191). An analysis of the economic agenda of Turkey in the last 35 years indicates that unemployment is a socio-economic problem that takes the first place. This problem has gained continuity and prevalence with the economic crisis in recent years, let alone being solved (Tatar, 2006: 1). Negative consequences of rapid population increase on employment in Turkey continue to increase with the rapid process of urbanization. Starting from this point, there is a need to increase employment opportunities in accordance with the increasing population. As of October 2015, the number of total unemployed in Turkey is 3 million 147 thousand and the number of employed is 26 million 856 thousand (TUIK, 2016). Majority of employment is provided by SMEs in the world and the European Union and they constitute a big role in industry. SMEs can adapt quickly to technological developments due to their small and flexible structures. They can provide better customer satisfaction by doing boutique production instead of scale production. Consumer awareness has changed with the effect of communication tools in the international field and the obligation of responding to consumer requests quickly with the emergence of a more flexible production structure on the part of producers. In general, SMEs contribute to economy by creating employment, adapting to innovations quickly due to flexibility, encouraging entrepreneurship, production differentiation due to boutique production, supplying intermediate goods to big organizations (Oktay & Guney, 2002: 2). SMEs play an important role in the growth and development of countries. They have the potential to decrease poverty in several parts of a society (Cook & Nixson, 2002: 2). Although different definitions are used due to factors such as annual return, the number of employees, a mutual SME definition would be: SMEs provide diversity in economy structure, they are less sensitive to business cycles, and they contribute to provide flexibility and innovation needed in the industry. They play an important role in transferring small savings directly to investment and provide a sub-industry in economy by becoming producer of inputs of big industrial organisations and intermediate goods and completing their development. Also, SMEs are considered as an effective tool to prevent

4 498 Selçuk Bakan monopolism, contribute greatly in increasing employment, and promoting production and industrialization in the country (Celik &Ozan, 2006: ). SMEs are defined in our country as economic units or entreprises that are classified as micro, small and medium sized enterprises that annually employ less than two hundred and fifty people and annual net sales revenues or financial statements do not exceed forty million Turkish Lira (Official Gazette, 2012). Fast adaptation to changing market conditions, creating sub-industries of big enterprises, not greatly affected by crisis, causing increase in production and added-value make SMEs irreplaceable elements of economies in the world (Ondes, 2013: 2). SMEs play an effective role in increasing development levels of countries with their contributions to production and employment in the economic life. Economic growth and development activities were conducted efficiently with big sized enterprises between 1945 and 1970 in the world. However, during this process, it was understood that SMEs are more advantegous than big sized enterprises (Yardimci, 1998: 28). SMEs in developing and changing economies increased their efficiency and importance more. 2.Data and Method The study examines the relationship between employment rates in Turkey between and the number of SMEs opened and closed during the same period. Employment data were obtained from TUIK, the number of opened and closed SMEs obtained from the official website of Union of Chamber of Merchants and Craftsmen. As data conform with the normal distribution, parametric tests will be used. Data analysis will be done by using SPSS statistical package program. Employment Ratios 3.Findings ve Conclusion Table 1. Correlation of Employment Ratios and the number of SMEs opened and closed Numberof opened Number of closed SMEs SMEs r p When the relationship between employment ratios and the number of SMEs opened and closed is analyzed according to Pearson Correlation, no statistically significant relationship was found in between ((p>0.05) (Table 1). This study shows that the employment or unemployment that has arisen as a result of the opening of new SMEs or the closure of existing SMEs has not reached significant rates. It may also be indicated that SMEs, which have effective roles in reducing unemployment and establishing new business areas, do not affect the rates of macro-level employment in which they make worker transfers between each other. We suggest it is a study that investigates the causes of unemployment, which is one of the most important problems of Turkey and most countries of the world, that research similar to this and that address factors other than SMEs which may have an effect on employment ratios should be done. REFERENCES Alancıoğlu, E. ve Utlu, S. (2012). İstihdam ve Ekonomik Büyüme: Türkiye Örneği. KSÜ Sosyal Bilimler Dergisi, 9 ( 2): Cook, P. and Nixson F. (2000). Finance and Small and Medium-Sized Enterprise Development, Finance and Development Resource Programme. Working Paper Series, No: 14, University of Manchester. Çelik, A. ve Ozan E. (2006). KOBİ lerde Yeni-

5 Relationship Between The Number of Small and Medium-Sized Enterprises Opened and Closed, And Employment Rat..499 den Yapılanma Stratejileri Araştırması: Kahramanmaraş Örneği. Selçuk Üniversitesi Sosyal Bilimler Enstitüsü Dergisi, Sayı:15, ss: Eker, S. (2011). KOBİ lerde teknolojik ar-ge çalışmalarının istihdam üzerine etkileri: Tekmer lerde bir uygulama, Isparta: Süleyman Demirel Üniversitesi, Sosyal Bilimler Enstitüsü, Yayınlanmamış Yüksek Lisans Tezi. Güney, A. (2009). İşsizlik, Nedenleri, Sonuçları ve Mücadele Yöntemleri. Kamu-İş Dergisi, 10(4), Oktay, E. ve Güney A. (2002). Türkiye de KO- Bİ'lerin Finansman Sorunu ve Çözüm Önerileri, 21. Yüzyılda KOBİ ler: Sorunlar, Fırsatlar ve Çözüm Önerileri Sempozyumu. Öndeş, T. ve Güngör, N. (2013). KOBİ lerin Finansmanı, Erzurum Organize Sanayi Bölgesinde Bir Araştırma. Atatürk Üniversitesi İktisadi ve İdari Bilimler Dergisi, Cilt: 27, Sayı: 1. Resmi Gazete (2012). /2012/11/ htm adresinden tarihinde erişildi. Sorrentino, C. (2000). International Unemployment Rates: How Comparable Are They? Monthly Labor Review, 123 (6), June, Tatar, M. (2006). Türkiye de İstihdam-İşsizlik ve Çözüm Önerileri: Adıyaman İli Örneği. Kahramanmaraş: Kahramanmaraş Sütçü İmam Üniversitesi, Sosyal Bilimler Enstitüsü Yayınlanmamış Yüksek Lisans Tezi. TUİK (2016). L.do?id=21568 adresinden tarihinde erişildi. Yıldırım, K. ve Özer, M. (2006). İktisat Teorisi. Eskişehir: Anadolu Üniversitesi Yayını, No: Zaim, S. (1997). Çalışma Ekonomisi. 10. Baskı, İstanbul: Filiz Kitabevi. Citation Information/Kaynakça Bilgisi Bakan, S. (2018). Relationship Between The Number of Small and Medium-Sized Enterprises Opened and Closed, And Employment Rates: The Case of Turkey Açılan ve Kapanan Küçük ve Orta Büyüklükteki İşletme Sayıları İle İstihdam Oranları Arasındaki İlişki: Türkiye Örneği, Jass Studies-The Journal of Academic Social Science Studies, Doi number: Number: 71 Autumn II 2018, p

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