A Sectoral Hierarchical Clustering of SMEs in Turkey with Respect to General Support Programs

Ali Kemal Celik, Emrah Talas, Ilker Akbaba Ahmet


Small and Medium-Sized Enterprises (SMEs) have to be supported by appropriate programs, especially in developing countries. The Small and Medium Enterprises Development Organization (KOSGEB) is the institution in Turkey that assists SMEs to survive in domestic and global markets by providing support programs. Effective and efficient management of support programs by considering sectoral requirements is thus crucial for the success and survival of SMEs. This study uses hierarchical clustering analysis to investigate the success of the general support programs which KOSGEB provides in order to assist SMEs in Turkey on the purpose of playing more prominent roles in domestic and global markets. Hierarchical clustering analysis is a multivariate technique for building a binary tree of data and visualizing it in summary form. Using hierarchical clustering analysis, the general support programs for SMEs in Turkey were summarized with respect to sector for the years 2010 and 2011. Ward’s hierarchical analysis was used to analyze the data. The results of the corresponding analyses suggest that the sectors of SMEs in Turkey generally agglomerate in two or three clusters for both years. KOSGEB might consider the similarities of these sectors to draw greater advantage from its general support programs and look for new opportunities to encourage these sectors by providing these programs more efficiently.

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DOI: https://doi.org/10.5539/res.v5n5p84

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Review of European Studies   ISSN 1918-7173 (Print)   ISSN 1918-7181 (Online)

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