What is an SME? What support programs are available for SMEs?
Small and medium-sized enterprises (SMEs) form the backbone of today's economies. In Turkey, a significant portion of employment, production, and exports is provided by SMEs. Therefore, the definition, classification, and available support for SMEs are of great importance to both entrepreneurs and existing business owners.
What is an SME?
SME is an abbreviation for "Small and Medium-Sized Enterprises." It encompasses businesses defined as small and medium-sized based on specific criteria. These criteria are generally determined based on the number of employees and financial size.
SMEs cover a wide range, from tradesmen and family businesses to manufacturing workshops and service sector firms. A very large proportion of businesses operating in Turkey are classified as SMEs.
The Importance of SMEs in the Economy
SMEs stand out not only for their large numbers but also for their contribution to the economy. The importance of SMEs in the economy can be summarized under the following headings:
They provide a large portion of employment.
They support local development.
They encourage entrepreneurship.
They adapt quickly thanks to their flexible production structures.
They contribute to the spread of innovation and new business models.
Especially during times of crisis, the flexible structure of SMEs plays a significant role in economic recovery.
How is SME Classification Done?
In Turkey, SMEs are classified according to certain criteria. This classification is of great importance in determining which support businesses can benefit from.
Micro-Scale Businesses
Number of employees: Less than 10 people
Generally, small tradesmen, new ventures, and family businesses fall into this group.
Small-Scale Businesses
Number of employees: Between 10 and 49 people
These are businesses that have a specific customer portfolio and operate regularly.
Medium-Scale Businesses
Number of employees: Between 50 and 249 people
These are businesses that have largely completed the institutionalization process and have high growth potential.
This classification directly affects the scope and conditions of SME support programs.
What is an SME Certificate?
An SME certificate is a document that officially certifies a business as an SME (Small and Medium-sized Enterprise). This certificate allows businesses to benefit from government support, incentives, and various financing opportunities.
Businesses without an SME certificate cannot apply for many support programs. Therefore, official recognition of SME status is extremely important.
What are SME Support Programs?
SME support programs are incentive and assistance programs offered to small and medium-sized enterprises (SMEs) to ensure their establishment, development, increased competitiveness, and sustainability.
These supports can be offered under different headings such as:
Financial support
Grant programs
Interest-free or low-interest loans
Training and consultancy services
Technology and R&D support
and so on.
Objectives of SME Support
The main objectives of SME support are:
To reduce the financial burden on businesses
To increase competitiveness
To encourage digitalization and technological transformation
To support exports
To increase employment
To accelerate institutionalization
Various support programs have been developed by different institutions in line with these objectives.
KOSGEB SME Support
In Turkey, one of the first institutions that comes to mind when talking about SMEs is KOSGEB. KOSGEB is the public institution that offers the most comprehensive support to SMEs.
Types of KOSGEB Support
The support offered by KOSGEB is generally grouped under the following headings:
Entrepreneurship support
Business development support
Digital transformation support
R&D and innovation support
Employment support
These supports cover both newly established businesses and existing SMEs.
Entrepreneurship Support
Support offered to entrepreneurs who want to start a new business is one of the cornerstones of the SME ecosystem. Thanks to this support, entrepreneurs can reduce the financial risks they may encounter during the business establishment process.
Entrepreneurship support generally covers areas such as:
Establishment expenses
Purchases of machinery and equipment
Office and software expenses
Consulting and training services
and so on.
Financial Support for SMEs
Access to finance is one of the biggest challenges for SMEs. Therefore, financial support is of particular importance among SME support programs.
ce-peCredit Support
Low-interest loans
Interest-free or grariod loans
Long-term repayment plans
Grant Support
Non-repayable grants
Offered for specific projects and expenditures
These supports aim to ease the cash flow of SMEs.
R&D and Innovation Support
In today's highly competitive environment, innovation is crucial for the survival of SMEs. R&D and innovation support encourages businesses to develop new products and services.
Thanks to this support, SMEs can:
Conduct product development studies
Strengthen their technological infrastructure
Support patent and trademark processes
Digitalization and Technology Support
Digital transformation has become a necessity, not a choice, for SMEs. Therefore, many support programs are focused on digitalization.
Digitalization support programs include:
Software and automation systems
E-commerce infrastructures
ERP and accounting programs
Digital marketing solutions
all supported.
Employment Support
As SMEs grow, the need for employment also increases. Employment support offered by the state aims to reduce personnel costs for businesses.
These supports can be implemented as follows:
Social Security premium support
Incentives for hiring new personnel
Support for youth and women's employment
Who Can Benefit from SME Support?
To benefit from SME support, the following conditions are generally required:
Being an SME
The field of activity must be within the scope of the support program
Submission of all necessary documents
Meeting the project and application criteria
Each support program may have its own specific requirements.
Points to Consider When Applying for SME Support
To benefit effectively from SME support, the following points should be considered:
Application requirements should be carefully examined.
Required documents should be prepared completely.
Project and expenditure plans should be clear.
Processes should be followed regularly.
Incorrect or incomplete applications may negatively affect the support process.
The Importance of Institutionalization for SMEs
For SMEs that want to benefit from support programs in a sustainable way, institutionalization is of great importance. Regular accounting records, accurate inventory and current account management, and a transparent financial structure facilitate SMEs' access to both support programs and financing sources.
Conclusion
SMEs are among the most dynamic and important building blocks of the Turkish economy. SMEs that benefit from the right support programs and manage their financial and operational processes well can take significant steps towards growth, export, and branding.
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