The Importance and the Role of Private Equity Funds in the Solution of Financial Problems of Small and Medium-Sized Enterprises (SMEs): A New Model Suggestion to Participation Banking

SMEs that form the backbone of our country's economy; as vital economic actors of employment, value added, investment and economic growth. On the other hand, financial problems of SMEs are the most important obstacle in terms of their development, growth and investments. Considering that traditional financing methods do not fully respond to the solution of this problem, instead of borrowing-based financing techniques, venture capital funding approach based on profit sharing and based on risk sharing offers a solution. Considering the compatibility of the venture capital technology with the principles and principles of participation banking, the venture capital model integrated with participation banking brings an alternative approach to the solution of SMEs' problems