Firm Performance, Innovation and Market Dynamics: Evidence from Turkish and Moldova SMEs

Abstract

This study aims to examine the impact of administrative, financial, and fiscal constraints on the ability of Turkish and Moldova firms to innovate, invest, and enhance their productivity in 2024. Within this framework, an analysis was conducted using data from the World Bank’s Enterprise Surveys, based on a representative sample of 1,416 firms in Turkey. Building on these results, a comparison was made between the performance of Turkish SMEs and the obstacles they face, relative to those observed in the Europe and Central Asia (ECA) region. Similar, to analyze the performance of Moldova SMEs we used statistical data and the latest data from business surveys to assess challenges that small business sector is facing through the perception of entrepreneurs. In this regard, recommendations for strengthening SMEs economic potential will be drawn up. JEL: C21, H25, L25, G30, O31