What is Economic Crisis | IGI Global (2024)

Economic crises that occur in a certain period or unexpectedly due to inadequate or wrong management.

Published in Chapter:

Suggestions for SMEs as They Emerge From Crisis Periods

Engin Meriç (Trakya University, Turkey)

Abstract

Existing financial problems of SMEs, which have an important place in the economies of countries, deepen even more in times of crisis, affecting businesses negatively and leading them to failure. In the crisis conditions, the strategies that SMEs have implemented in order to maintain their balance in their economic activities and to be successful are of critical importance. For this purpose, a method has been proposed for SMEs to determine the exit method from the crisis in the first crisis phase, which they will notice before entering the chronic crisis phase. In the proposed method, a financial check-up was planned to include 1-Current Assets, 3-Short-Term Liabilities, 5-Equity and production and sales strategies. In addition, as a result of the application of this proposed method periodically, SMEs' control of finance and cash flow will contribute significantly to both their protection from economic problems and their internal control systems.