Financing SMEs and Entrepreneurs 2026: Türkiye
Table of contents
In 2023, Türkiye’s economy remained resilient despite major shocks, including the February 2023 earthquake, global supply disruptions, and geopolitical tensions. GDP grew by 5.1%, supported mainly by strong domestic demand and a solid services sector, especially tourism. On inflation, pressures from energy and core goods eased somewhat in the first half of 2023 as energy price increases slowed and exchange rates stabilised. However, from the second half of 2023, Türkiye began a tight monetary policy stance to fight inflation. In 2024, growth moderated to 3.2% as the disinflation strategy introduced in mid-2023 (including sharp monetary tightening, with the policy rate rising from 8.5% to 50%) reduced domestic demand momentum. Inflation remained high and kept rising until May 2024, mainly due to persistent services inflation, but then peaked and started to decline.
Despite tight credit conditions, new SME lending increased by 33.6% in 2023-2024 period. In the same period, the share of outstanding SME loans in outstanding total business loans decreased to 35.2%. As of April 2025, outstanding SME loans increased by 33.2% compared to same period in 2024, reaching TRY 4917.1 billion. In this period, TRY 1.188 billion of new loans (FX adjusted) were provided to SMEs. The currency distribution reveals that TL loans account for 80.7% of the total SME loans. Moreover, as of April 2025, 57.5% of the total amount of SME loans have medium / long-term maturities.
Venture and private equity investments have increased markedly. After a sharp rise in 2020 (151.38% from 2019) investments increased again in 2021 (269.06% year-on-year amounting to TRY 5.6 billion). That growth momentum continued into 2023 with an increase of 392.12% year-on-year reaching a record high of TRY 33.9 billion. By the 9-month period of 2024, these investments increased 4.64% year-on-year amounting to TRY 35.5 billion. Such impressive growth in the last years can be explained by the change of the legal framework in order to support entrepreneurship in Türkiye. Similarly, tax incentives for investors who invest in venture capital and private equity funds also supported the growth of the VC industry.
The share of non-performing loans (NPLs) in total business loans decreased to 1.49% and the share of NPLs of SME loans increased 1.98% in 2024.
The number of bankruptcies was stable in 2024. Company closures, including sole proprietorships, totalled 55 674 enterprises in 2024, lower than the figure in 2023. KOSGEB is the main body for executing SME policies in Türkiye, with the goal of increasing the productivity of these businesses through various services and programmes. The support programmes of KOSGEB, which provides direct services and support to SMEs, were restructured in 2024 and the number of programmes was reduced and gathered around lean, accessible, and digital axes.
A fund of funds platform was established in 2024 with the Ministry of Treasury and Finance and Development and Investment Bank of Türkiye (TKYB) as the main investors. This fund of funds is expected to contribute to increasing technological competence of Türkiye and create a significant multiplier effect in the entrepreneurship ecosystem by deepening capital markets through the leverage effect.
Within the Treasury backed credit guarantee system (system) that plays as a critical role in SME financing, besides the “Credit Guarantee Fund” (CGF), “Export Development Türkiye” (İGE) and “Katılım Finans Kefalet A.Ş.” (KFK) started to their guarantee activities in 2023 and 2025 respectively. Between 2023-2025, with approximately total TRY 285.4 billion credit was utilised by firms and within the system 78% of credits used by SMEs.
In 2024–2025, TÜBİTAK adopted a more SME-friendly approach, improving application processes and shortening evaluation times across its SME and entrepreneurship programmes. Under this framework, entrepreneurs receive acceleration and investment support through the BİGG Funds and the BİGG+ Venture Capital Investment Fund, which provides seed finance for scaling. Key SME instruments, notably the 1501 Industry R&D Programme and the 1507 SME R&D Entry Programme, strengthen R&D capacity, widen first-time participation, and support commercial outcomes. The 1507 programme provides a dedicated track for SMEs’ first five R&D projects. Over the last five years, first-time applicants accounted for 45% of entries to 1507 and over 20% to 1501. A 2025 analysis showed net sales growth of 140.5% above comparable non-supported firms under 1501 and 255.2% under 1507. TÜBİTAK also uses demand-driven innovation including the 1707 Customer-Oriented R&D Call and the 1711 AI Ecosystem Call both of which connect customer organisations with SME technology providers. Over the last two years, as a total of 4.861 projects of 3.562 SMEs and entrepreneurs have been supported with TRY 11.2 billion.
In addition, the criteria used to identify SMEs in Türkiye have been updated with the SME Regulation published in the Official Gazette of Türkiye dated August 7 (Official Gazette of Turkish Republic, 2025). Under this Regulation, the SME definition has changed to include more enterprises within the scope of support. The annual turnover or annual balance sheet limit, which is one of the criteria for becoming an SME was increased from TRY 500 million to TRY 1 billion
.
Notes: * The data presented in this section do not refer to outstanding values but show the new investments each year. Since annual data has not been announced yet, 9 month data for 2024 is presented in this table.** The data (2020) refer only to the data on the guarantees and loans used under the Treasury-Backed Guarantee System, which does not include the data that is related to KGF equity guarantees.
During 2022-2023, Türkiye's economy demonstrated resilience despite facing multiple shocks, including the lingering pandemic effects, the large-scale aggression of Russia against Ukraine impact on global supply chains and commodity, food and energy prices, the devastating February 2023 Kahramanmaraş earthquake, and heightened geopolitical tensions in the region. Despite these challenges, economic activity remained robust, primarily driven by domestic demand. Over those two years, total domestic demand contributed an average of 6.3 percentage points to annual growth. Private consumption was the main driver, accounting for 8.2 percentage points, largely reflecting goods consumption. Gross investment added 1.5 percentage points to average annual growth. The increase in domestic demand was supported by an accommodative policy stance and expenditures related to earthquake recovery, both serving as key drivers. The services sector, including tourism and related industries, performed well and continued to support economic activity during this period. In this context, Turkish economy maintained uninterrupted growth during this period, with GDP expanding by 5.4% in 2022 and 5.0% in 2023. Over these two years, the labour market remained strong, with steady non-farm employment growth. Tourism played a significant role in job creation, as increasing visitor numbers boosted employment gains in transportation, accommodation, and food services. On the external balance side, while exports remained strong, rising energy and commodity prices led to increased imports, thereby widening the trade deficit.
2022 was a year of high inflation for Türkiye, mainly due to exchange rate developments, rising international energy commodity prices and supply constraints combined with strong domestic demand. Throughout the 2022, annual inflation was driven primarily by food and non-alcoholic beverages, core goods, which were highly affected by exchange rate developments, and the energy group, which was affected by TL-denominated energy prices. In the first half of 2023, the contribution of energy and core goods to annual inflation decreased due to the slowdown in TL-denominated energy prices and the relative stabilisation of exchange rates.
Growth rates moderated gradually in 2024, reflecting the implementation of disinflationary policies introduced in mid-2023, including monetary tightening that raised the policy rate from 8.5% to 50%, which successfully began to restore macroeconomic stability and reduce inflation. While economic activity lost some momentum in 2024 due to the tightening in financial conditions, the contribution of domestic demand to growth declined noticeably throughout the year. Meanwhile, the positive contribution of net exports became more evident, resulting in a more balanced demand composition. Against this backdrop, GDP increased by 3.2% in 2024. Exports grew on an annual basis in 2024, while imports registered a decline. The narrowing trade deficit, combined with a strong services balance, led to a significant drop in current account deficit, reaching historically low levels. Key labour market indicators pointed to continued strength in 2024. Total employment rose by almost a million compared to the previous year, while the unemployment rate declined on an annual basis.
Since the second half of the 2023, Türkiye has been implementing tight monetary policy. However, year-on-year headline inflation increased up until May 2024 mainly due to the high and persistent services inflation. The time-dependent and backward-indexed pricing behaviour, prevalent in the services sector, leads to significant inertia and a protracted impact of shocks on inflation. This outlook causes services inflation to weaken with a lag. Yet, after peaking in May 2024, inflation entered a downtrend and the disinflation process is still ongoing with the tight monetary policies implemented.
In Türkiye, an enterprise is a legal unit or a combination of legal units. The Turkish SME definition has been prepared in line with the EU definition in terms of number of employees, even though the financial thresholds applied are lower.
The regulation on the Small and Medium-sized Enterprises entered into force on August 7, 2025. According to that regulation, an SME is an economic entity employing less than 250 persons and having an annual turnover or an annual balance sheet that does not exceed TRY 1 billion. The characteristics of micro, small and medium enterprises are illustrated below.
As illustrated in Table 3 micro-enterprises accounted for more than 90.7% of all firms in 2023, whereas only 0.3% of all firms were large enterprises.
Note: Data excludes financial and insurance enterprises. Non-employer enterprises are included. The figures have been measured by the Annual Industry and Service Statistics, 2023 through administrative records and include data such as income generated, purchases, gross value added and employment costs of businesses within this part of the economy.
New SME lending increased by 33.6% in 2023-2024 period. In the same period, the share of outstanding SME loans in outstanding total business loans decreased to 35.2%. As of April 2025, outstanding SME loans increased by 33.2% compared to same period in 2024, reaching TRY 4917.1 billion. In this period, TRY 1.188 billion of new loans (FX adjusted) were provided to SMEs. The currency distribution reveals that TL loans account for 80.7% of the total SME loans. Moreover, as of April 2025, 57.5% of the total amount of SME loans have medium / long-term maturities (which means that the original term is equal to or greater than 1 year). This also suggests SMEs have a robust access to long-term financing by banking sector.
Bank loans stand out as the financing method most used by SMEs of all sizes in Türkiye. Among Turkish SMEs however, micro sized enterprises have lower access to bank loans compared to small and medium ones. Results of 2025 from Survey on the Access to Finance of Enterprises survey (SAFE) (European Commission, 2025) indicates 55% of medium scale enterprises use bank credits, where this ratio is 46% for small sized and 36% for micro sized enterprises. According to survey responses, the prominent reasons why SMEs that do not use bank loans are high interest rates and insufficient collateral.
In recent years in Türkiye, as a result of policies aimed at facilitating SMEs' access to bank loans, SMEs’ standards have remain relatively accommodative amid tight credit conditions. The table below shows the results on the Bank Lending Survey for the question; “how your bank’s credit standards applied to the approval of loans or credit lines to enterprises changed over the past three months”. As the figures suggest, the lending conditions for SMEs have been generally accommodative. Since the end of 2023, credit standards applied to the approval of loans or credit lines for SMEs have been relatively more favourable compared to large firms. In this period when financial conditions remain tight, the credit growth restrictions have had a decisive impact on commercial credits, and the credits that are not subject to restrictions have come to the forefront in growth. While the monthly growth restriction level is 2.5% for SME credits, this rate is 1.5% for other company credits.
Source: CBRT Bank Loans Tendency Survey (Central Bank of the Republic of Türkiye, 2025)
Note: CBRT Bank Loans Tendency Survey is conducted to monitor, on a quarterly basis, the loans extended by banks to non-financial companies and consumers, focusing on credit standards and other factors affecting credit supply and demand. The values shared in Table 4 represent the net percentage change in response to the question regarding how credit standards have changed over the past three months for loans extended by banks to SMEs and large businesses. In the survey, credit standards refer to the regulations and criteria that guide the bank's own credit policy. For example, the net percentage change in credit standards is calculated by subtracting the percentage of banks reporting a tightening of standards from the percentage of banks reporting a loosening of standards compared to the previous quarter. Therefore, this ratio reflects the percentage of banks reporting in that direction, not the change in standards or credit demand. This point should not be disregarded when interpreting the relevant results. For more detailed information, the metadata of the survey can be examined.
As a per cent
Source: (BRSA, 2025)
SME loans were supported within the framework of the selective credit growth policy in the April 2022–May 2023 period. In the following period, SMEs became subject to monthly credit growth restrictions in order to slow down strong domestic demand. The scope and limit of the regulation changed periodically, and the growth limits were last revised in January 2025 based on firm scale. In this context, the growth limit for SME loans was set at 2.5 per cent and 1.5 per cent for other firms. This distinction was made to ease the access to financing for SMEs, which are more affected by tight financial conditions compared to other firms due to their relatively low liquidity buffers.
With the decision taken in January 2025, the growth limit for TL commercial loans was differentiated as 2.5% for SME loans and 1.5% for other commercial loans during a four-week calculation period. In August of the following year, the loan growth calculation periods were extended from four weeks to eight weeks to provide the sector more flexibility in the management of loan growth limits. Accordingly, loan growth limits were established at double the current ratios for eight-week periods. Thus, the growth limit for TL SME loans for the eight-week calculation period became 5%. This regulation applies to growth in the outstanding balance of SME loans, excluding exempt loans, and is unrelated to the interest rate. In this context, if the growth of the outstanding balance of non-exempted loans exceeds 5% in the relevant calculation period, banks establish the excess amount as a blocked reserve requirement at the CBRT for one year. Export, investment, agriculture, defence industry, and earthquake-related loans are among the categories of TL SME loans that are exempt.
As a result of the policies, the share of SMEs in TL and FX commercial loans has been on an upward trend since 2022. As of April 2025, SMEs hold 56.9% share of TL commercial loans and a 13.4% share of FX commercial loans. Thus, more than half of TL commercial loans are held by SMEs. Finally, during the post-pandemic period of expansionary monetary policy, a significant number of small firms entered the credit and labour markets. (Central Bank of the Republic of Türkiye, 2025) Consequently, loans tended to be concentrated among small-scale enterprises, resulting in increased diversification in financing real sector firms.
On October 8, 2024, the net exporter requirement for the use of the rediscount credit programme was changed with a new method that is based on a credit score. In the new model, firms are evaluated not only on whether they are net exporters, but also based on factors such as the diversity of exported products and destination markets, the technological level of the exported goods and the scale of the firm. These variables are weighted differently and incorporated into a formula to generate a unique exporter score for each firm.
Based on the calculated scores, firms that exceed a specified threshold are eligible to benefit from rediscount credits. The threshold is defined as having either a performance score or a potential score, both components of the exporter score, of at least 40 points. The performance score reflects the firm’s current export diversification, while the potential score is based on ratios that measure the firm’s progress over time, comparing past data with the current period.
To assist firms in adapting to this new implementation, it has been decided to allow them to renew their existing rediscount credits during a transition period lasting until the end of 2025. Furthermore, the new system was scheduled to be implemented as of January 13, 2025.
Based on the implementation of the exporter score, the performance of 2,097 SME firms that utilised rediscount credits between January 13 and April 16, 2025, was analysed (see tables below). A significant portion of these firms (44.1%) fell within the 40 to 60 score range, where the total exporter score is calculated by weighting performance and potential scores equally at 50%. The total credit utilisation amount for firms in this group reached USD 437.88 million.
On the other hand, firms with an exporter score of 40 or below accounted for 32.4% and utilised USD 320.44 million in rediscount credits. While these firms in the group of 40 or below formed entirely of the SMEs classified as having “incapable exporter score”, their utilisation of rediscount credits still constituted more than half of the total utilisation within this group. This indicates that incapable-score firms still maintain significant access to financing.
The average performance score of SME firms stands at 56.52, while the average potential score is 37.06. This disparity suggests that although SMEs currently demonstrate relatively strong export performance, their export growth potential based on historical trends remains limited. Therefore, enhancing low potential scores will play a critical role in helping SMEs achieve sustainable export capacity.
Source: CBRT
Source: CBRT
The data provided in Table 1 includes information on venture capital, private equity investments by venture capital and private equity investment companies and venture capital investment funds, which are regulated and monitored by the Capital Markets Board (CMB). After a sharp rise in 2020 (151.38% from 2019) investments increased again in 2021 (269.06% year-on-year amounting to TRY 5.6 billion). That growth momentum continued into 2023 with an increase of 392.12% year-on-year reaching a record high of TRY 33.9 billion. By the 9-month period of 2024, these investments increased 4.64% year-on-year amounting to TRY 35.5 billion. Such impressive growth in recent years can be explained by the change of the legal framework in order to support entrepreneurship in Türkiye. Similarly, tax incentives for investors who invest in venture capital and private equity funds also supported the growth of the VC industry.
Within the scope of equity-based crowdfunding which was legalised in 2017 by an amendment to Capital Markets Law and as the secondary legislation Crowdfunding Communiqué was published by the CMB in 2019, several companies obtained licences from the CMB. As of March 2025, eighteen companies had a licence to operate as equity-based crowdfunding platforms and, among the total number of campaigns conducted, 149 campaigns have been completed and funded successfully by equity-based crowdfunding model. In addition to equity-based crowdfunding model, after additional amendments of Capital Markets Law, a renewed Crowdfunding Communiqué has been prepared and issued. (Official Gazette of Turkish Republic, 2021) in order to bring the debt-based crowdfunding model into the capital markets legislation. Currently, both equity and debt-based crowdfunding activities must be executed according to this Communiqué. When compared to the previous year, the increase of factoring receivables and leasing in 2024 was approximately 46% and 23% respectively.
The criteria for categorising non-performing loans have changed in recent years. Due to the pandemic conditions between March 2020 and September 2021, the past due days criteria was changed from 90 days to 180 days for categorising a loan as non-performing. Also, the past due days criteria was changed from 30 days to 90 days for categorising a loan as Stage 2. In 2024, The NPL ratio for SMEs reached 1.98%.
A more detailed look at company closures illustrates that bankruptcies constitute an uncommon way to close companies in Türkiye. The closing of companies in Türkiye takes place in three ways; liquidation (voluntary), dissolving without liquidation (mergers-demerges) and liquidation due to bankruptcy (upon court verdict). The number of closed commercial companies in Türkiye in 2024 amounted to 32 615, while 23 059 sole proprietorships were also closed in the same year, amounting to 55 674 companies in total. This is a -16.7 per cent decrease from 2023 (see Table 7).
During the 2023–2025 period, KOSGEB has aligned its SME support framework with Türkiye’s national development priorities, focusing on; enhancing competitiveness and productivity, promoting high value-added and technology-intensive production, supporting digital transformation, advancing green and sustainable industrial transition, facilitating access to finance and strengthening resilience against economic and natural shocks.
The policy approach reflects a gradual shift from traditional grant-based schemes towards blended and interest-subsidised financing instruments (KOSGEB, 2025).
Core Support Programmes
1. Entrepreneurship and Investment Support
Entrepreneur Support Programme
Provides start-up and business development support:
Up to TRY 1.65 million in loans for manufacturing enterprises
Up to TRY 350,000 in grants for service-sector start-ups
SME Technological Product Investment Support Programme
Up to TRY 10 million
60% grant ratio
Maximum duration: 36 months
Targets commercialisation of R&D-based technological products.
Strategic Product Support Programme
Supports medium-high and high-technology investments:
Up to TRY 10 million (reimbursable personnel support)
Independent assessment support (100% non-reimbursable, up to TRY 50,000)
Project duration up to 24 months
2. Capacity Building and Global Competitiveness
Capacity Development Support Programme
Designed for scale-up investments of fast-growing SMEs:
Credit upper limit: TRY 20 million
Non-refundable support covering interest/profit share expenses
Global Competitiveness Support Programme
Targets export-oriented and technology-intensive SMEs:
Loans up to TRY 50 million
36-month maturity
20-point interest/profit share subsidy (non-refundable)
Eligible firms include high-tech enterprises, exporters with sustained growth, and firms participating in national technology initiatives.
3. Green Transition
Green Industry Support Programme
Implemented with the support of the World Bank and in co-operation with TÜBİTAK and the Ministry of Industry and Technology.
Key features:
Up to TRY 14 million for rooftop solar energy investments
Up to TRY 4 million for circular economy projects
Grant rates up to 90% in earthquake-affected regions
The programme supports renewable energy adoption, energy and resource efficiency, carbon reduction, and green innovation.
4. Digital Transformation
SME Digital Transformation Support Programme
Launched in co-operation with the European Bank for Reconstruction and Development (EBRD).
Targeted credit volume: EUR 300 million
Up to TRY 20 million per SME
36-month maturity
Requires Digital Transformation and Maturity Assessment
YÖNDE Guidance and Evaluation Support Programme
Provides consultancy-based support for:
Digital transformation roadmaps (80% support, up to TRY 40,000)
Sustainability reporting (80% support, up to TRY 200,000)
Lean maturity assessments (80% support, up to TRY 40,000)
5. Financial Instruments and Emergency Measures
KOSGEB has continued to expand interest/profit share subsidy mechanisms to facilitate SME access to credit.
Between 2003 and 2024, 542,561 SMEs accessed TRY 25.4 billion in credit via contracted banks.
In 2024, the SME Financing Support Programme was abolished; however, existing commitments continue.
Emergency Situations Loan Interest Support
Introduced to provide rapid financial relief to enterprises affected by disasters.
Support conditions (scope, limits, rates, duration) are determined by the KOSGEB Executive Committee.
Impact and Outreach
763,124 SMEs received direct support between 2007–2024, totalling TRY 48.2 billion (excluding interest subsidies).
In 2024 54,262 SMEs were supported, TRY 12.4 billion was disbursed
KOSGEB operates nationwide with:
88 Directorates across 81 provinces
31 TEKMERs
107 representative offices
Monitoring and Evaluation
Since 2019, all support schemes have been subject to systematic evaluation under the Support Programme Monitoring System (SPMS).
16 evaluation reports completed
7 ongoing evaluations (to be finalised by end-2025)
Annual monitoring and impact assessment reports are shared with the Directorate General of State Aids under the Presidency of Strategy and Budget
During 2023–2025, KOSGEB’s SME policy framework demonstrates:
A structural shift towards credit-linked and interest-subsidised instruments
Strong emphasis on green and digital transformation
Targeted support for scale-up and high-technology production
Enhanced resilience mechanisms in response to disasters
This integrated framework positions KOSGEB as a central policy actor in strengthening SME competitiveness, sustainability, and global integration.
The Treasury backed Credit Guarantee System launched in 2009 is aimed to facilitate and improve the access opportunities of enterprises with limited access to finance due to lack of collateral, especially SMEs.
The Credit Guarantee Fund (KGF) was founded in July 1991. As a non-profit guarantee institution, KGF provides access to finance for SMEs that cannot benefit from - bank loans and leasing finances due to insufficient collateral. Its shareholders include KOSGEB (28.3%), TOBB - The Union of Chambers and Commodity Exchanges - (28.3%), TESK - The Confederation of Turkish Craftsmen and Tradesmen - (0.1%), and 29 banks with equal shares of 1.5%. Those 29 banks represent almost the whole Turkish banking sector in terms of loan volume (99%).
Along with the guarantees backed with its own equities, the Ministry of Treasury and Finance (MoTF) provides counter-guarantees for KGF. In return, KGF issues guarantees for banks which provide loans to SMEs. Moreover, the KGF benefits from counter-guarantees of foreign institutions, such as the European Investment Fund (EIF). KGF’s co-operation with the EIF has been productive, with projects such as the Instrument for Pre-Accession (IPA), the Competitiveness and Innovation Programme (CIP), the Multiannual programme for enterprises and entrepreneurship (MAP), Competitiveness of Enterprises and Small and Medium-sized Enterprises (COSME) focusing in particular on SMEs.
In January and February 2023, the Ministry of Treasury and Finance and KGF A.Ş implemented several support packages:
The Operating Expenses Support Package includes a guarantee limit of TRY 35 billion to ensure that SMEs and non-SMEs continue their activities in a healthy manner by providing financing support for all fixed expenses, especially salaries and rent payments.
The Investment - Project Finance Support Package to be used for the investment and investment-related operating expenditures of SMEs and non-SMEs planning to invest, primarily enterprises operating in the manufacturing industry and exporter enterprises. The project guarantee limit is TRY 20 billion.
The Manufacturing Sector Programme with TRY 15 billion guarantee limit to facilitate access to finance for all SMEs and non-SMEs operating in the sectors of machinery manufacturing, electrical-electronics sector, manufacturing of electronic components and circuit boards, manufacturing of electric motors-generators and equipment, manufacturing of wires and cables used in cabling, pharmaceutical and medical sector, automotive supply industry, chemicals manufacturing, glass and soil industry (only investments for green transformation), railway freight transportation (electric locomotive investments).
Due to the earthquake disaster that occurred on February 2023, the February 6 Earthquakes - Business Expenses Support Package focus on operating expenses of enterprises operating in Kahramanmaraş, Gaziantep, Şanlıurfa, Diyarbakır, Adana, Adıyaman, Malatya, Osmaniye, Hatay and Kilis provinces. The project guarantee limit is TRY 10 billion.
In February 2023, the Ministry of Treasury and Finance and KGF A.Ş. signed an agreement for a guarantee limit of TL 10 billion to be used for the investment expenditures of enterprises operating in Kahramanmaraş, Gaziantep, Şanlıurfa, Diyarbakır, Adana, Adıyaman, Malatya, Osmaniye, Hatay and Kilis provinces due to the earthquake disaster.
In February 2023, within the scope of the joint financing support programme carried out between the Ministry of Treasury and Finance and KGF A.Ş. in co-operation with KOSGEB and Development Agencies, the Regionally Focused SME Support Loan Package was put into practice in order to finance the operating expenditures of SMEs eligible for support, especially those operating in the manufacturing industry. The project guarantee amount is TRY 10 billion.
The Foreign Exchange Earning Activities Support Package, consists of TRY 25 billion guarantee limit, with the aim of increasing the number of existing exporter companies and the volume of exports realised in order to be made available to SMEs and non-SMEs operating in the exporter or foreign currency earning services sectors.
The Entrepreneur Support Loan Package to support innovation and high technology production by facilitating access to finance for all entrepreneurs, especially young entrepreneurs. The project guarantee amount is 4 billion TL.
The Women Entrepreneur Support Package to strengthen the women's entrepreneurship ecosystem by supporting real person businesses that are owned by women who want to open a new workplace for the production of goods and services, self-employment or commercial activity or operate based on a business idea, legal person businesses whose at least 50% of the total shares belong to women entrepreneurs as of the application date, and women's cooperatives where at least 50% of the partners are women. The Project Guarantee amount is TRY 4 billion.
The Green Transformation and Energy Efficiency Support Package focus on providing support for investment and investment-related operating expenditures of SMEs and non-SMEs aiming energy efficiency and green transformation. The project guarantee amount is TRY 7 billion.
The Technology Support Package to be used for the investment and investment-related operating expenditures of enterprises operating in technology development zones and specialized technology development zones within the scope of Law No. 4691, enterprises operating in Technology Development Centers granted the right to use the name TEKMER by KOSGEB, enterprises that have received Design Center Certificate and/or R&D Center Certificate from the Ministry of Industry and Technology within the scope of Law No. 5746, and enterprises with Patent or Technological Product Experience Certificate (TÜR). The project guarantee amount is TRY 4 billion.
The Digital Transformation Support Package provide financing support for the completion of digital transformation processes [big data, artificial intelligence (AI), industrial internet of things (IIoT), cloud computing and platform services, etc.] of SMEs operating in the manufacturing industry. The project guarantee limit is TRY 1 billion.
In March 2023, within the framework of Law No. 7438 dated 03.03.2023 between the Ministry of Treasury and Finance and KGF A.Ş., the EYT Support Package was put into practice in order to meet the financing needs of SMEs and non-SMEs that will pay severance payments to their employees due to retirement. The project guarantee limit is 50 billion TL.
In November 2023, the Ministry of Treasury and Finance and KGF A.Ş. entered into an Investment Support Package to be used for the investment and investment-related operating expenditures of SMEs and non-SMEs with Investment Incentive Certificates. The project guarantee limit is TL 9 billion.
In November 2023, the Export Support Package was launched between the Ministry of Treasury and Finance and KGF A.Ş. to be extended to SMEs and non-SMEs operating in the exporter or foreign currency earning services sector. The project guarantee limit amount is TL 9 billion.
With the Protocol signed in October 2024, Treasury Support to be provided to Kredi Garanti Fonu A.Ş., financing support provided for the investments of SMEs operating in the manufacturing sector for digital transformation under the 2024 Digital Transformation Support Package. Small and medium-sized manufacturing SMEs whose application has been approved by KOSGEB and who are entitled to receive loan interest support under the said programme will be able to benefit from the loan guarantee facility. The project guarantee limit amount is 2 billion 500 million TL.All the programmes presented above are financed in virtue of doubling of the national budget spared for Treasury Backed Credit Guarantee System from TRY 50 billion to TRY 100 billion and increasing the guarantee portfolio volume from TRY 500 billion to TRY 1 trillion by the same token.
Note: Above figures represent approved KGF equity backed and KGF Treasury backed guarantees.
Source: KGF. (KGF A.Ş.)
In addition, international financial organisations such as the World Bank, the European Commission, the European Investment Bank and the Council of Europe’s Development Bank continue to provide direct loans to SMEs, which were guaranteed by the Turkish Treasury.
In USD million
Source: Treasury of Türkiye.
İhracatı Geliştirme A.Ş. (İGE) was established on 13.10.2021 under the leadership of the Ministry of Trade of the Republic of Türkiye, by shareholders Türkiye Exporters Assembly (TİM) and Türk Eximbank, to address the issue of insufficient collateral faced by exporters, especially SMEs, in accessing finance. The shareholding structure consists of 61 Exporters’ Associations (77.30%), 20 Banks (12.62%), TİM – Türkiye Exporters Assembly (5.08%), and Türk Eximbank A.Ş (5%). The guarantee support packages provided by İGE are designed to meet the financing needs of exporters, offering support for both Turkish lira and foreign currency denominated loans. These support packages are provided depending on İGE’s strong equity base and are also backed by the Ministry of Treasury and Finance of the Republic of Türkiye. The table below shows the total loan amounts extended with the guarantee provided by İGE to exporting SMEs since March 2022, the date when İGE first began offering guarantees.
Note: The data in the table represent the actual figures related to İGE’s equity-based and Treasury-backed guarantees. Source: İGE (İGE, 2025).
Given its efforts to boost exports, İGE aims to contribute to the national economy, channel more resources into this area, and support the sustainability of exports. In addition to these activities, İGE has launched the Women in Export Support Packages, funded by its own equity, to support women-led exporting SMEs that contribute to growth and employment. By the end of 2023, the packages were implemented in co-operation with Yapı Kredi and Şekerbank. In 2024, İş Bankası, TEB, Akbank, Halkbank, Garanti BBVA, and Odeabank also joined the programme. These packages enable guarantee support for loans totaling TRY 2.9 billion. The credit limit per company, though varying by package, averages around TRY 7 million. The relevant packages are specifically tailored to meet the dynamics of the real sector, designed with longer maturities and lower costs, and are available to exporting companies owned or managed by women. In addition, applicants who hold the TSE K 645 certificate, which verifies the company as a women-owned enterprise, developed by the Turkish Standards Institution (TSE) under the leadership of TİM, are exempt from application fees.
Details on the use of İGE's Women in Export Support Package are provided in the table below.
İGE has also developed Green Transformation Guarantee Support Packages to support the green transition of exporters within the SME segment. These packages, made available to exporters through Akbank and Yapı Kredi Bankası, aim to provide guarantee support for loans totaling TRY 1.7 billion. It is possible to offer guarantee support for loans of up to TRY 18.7 million per company.
Regulation regarding fund of funds
The law regarding capital contribution of the MoTF to funds of venture capital funds (fund of funds) was enacted by the Parliament on April, 3rd 2013. A secondary legislation came into force on 14 March 2014. The purpose of the secondary legislation is to regulate the selection criteria, investment areas, auditing, the upper limits of all fees and expenses pertaining to the resources committed, and other related issues regarding received resources from the MoTF.
The fund of funds are structured to support venture capital funds and other legal persons providing financing to full-fledged taxpayer companies in Türkiye through equity injections via sub-funds formed under this fund of funds as well as co-investment funds, which provide co-financing to target companies along with angel investors.
The MoTF will commit funds to a fund of funds under several conditions:
The amount committed to the fund of funds by the MoTF shall not exceed 70% of the total amount committed to the fund of funds.
The amount committed to a venture capital fund approved by a fund of funds funded by the MoTF, shall not exceed 20% of the total amount committed to the fund of funds.
A venture capital fund requesting resources from the fund of funds is obliged to find at least twice the amount that is committed to it by the fund of funds.
The total amount of the resources committed to the fund of funds by the MoTF until the end of 2027 shall not exceed TRY 3 billion, excluding charges and fees to be paid to the fund of funds. The MoTF may pay this amount at once or in instalments.
The law aims to strengthen the financial ecosystem together with the funds of venture capital funds and the business angel programme. Moreover, as a new financial instrument, the fund of funds programme aims to improve the ecosystem via co-investments with angel investors, as co-investment funds will invest together with the angel investors into early-stage companies. In that respect, a substantial increase in the volume of venture capital and angel investments can be expected, which would eventually support early stage companies not only financially but also in terms of institutionalisation and corporate governance. These mechanisms are expected to accelerate the establishment of innovative start-ups, increase the dynamism of the economy and contribute to stronger and more sustainable economic growth. Furthermore, the fund of funds mechanism is expected to attract foreign investors, as well as ease the exit process of angel investments.
Within the framework of this legislation, the MoTF committed EUR 60 million to the Turkish Growth and Innovation Fund (a “fund of funds” that was established by European Investment Fund in May, 2016). Moreover, Development and Investment Bank of Türkiye (TKYB) Fund of Funds was also established within the fund-of-funds framework in July 2024, with a commitment of USD 35 million from MoTF.
Regulation regarding Direct Investment to Funds
The law regarding direct investment to venture capital funds from the MoTF was published in the Official Gazette on 5 December 2017, and the secondary legislation came into force on 5 June 2018. The purpose of secondary legislation is to regulate the selection criteria, investment areas, auditing, the upper limits of all fees and expenses pertaining to the resources committed, and other related issues regarding received resources from the MoTF.
As a result, it is expected that foreign investment funds will be encouraged to invest in Türkiye. Additionally, a new fund is planned to be established with participating banks, with the aim to encourage the access to alternative financing instruments. For the purpose of funding early stage companies which exist in the structure of Technology Transfer Offices (TTO), Incubator Centres and Accelerators located in the Universities, the government will support the establishment of a seed fund. In this system, the seed fund will be put into place by universities, while the MoTF and other public institutions will commit to provide resources.
These funds will have to fulfil specific conditions:
The amount committed to the funds by the MoTF shall not exceed 30% of the total amount.
For new funds, the amount committed by the MoTF shall not exceed 50% of the total amount committed. The Minister may increase these ratios by at most 50%.
The total amount of the resources committed to the funds by the MoTF until 12/31/2023, shall not exceed TRY 2 billion, excluding charges and fees to be paid to the funds.
The law aims to strengthen the financial ecosystem together with the fund of venture capital funds and the business angel programme. Moreover, as a new financial instrument, the Direct Investment to Funds programme aims to improve the ecosystem via Banks, Chambers of Commerce, Participation Banks and the Government institution: the Scientific and Technological Research Council of Türkiye (TÜBİTAK).
Turkish Investment Initiative (TII)
Venture capital/private equity funds create significant opportunities for startups, especially those with early-stage projects related to the realization of new technologies and ideas. In Türkiye, the number of venture capital funds providing support to startups developing products in these areas is increasing, especially as technological developments in the world accelerate and artificial intelligence, computer and consumer electronics sectors are becoming more profitable sectors. Within the venture capital fund structure, it has been observed that the establishment of funds of funds structures, especially in public-private partnership, increases confidence in the investment environment and achieves very successful results in company exits. The first fund of funds structure established in Türkiye with the participation of the public and private sectors and EIF was the Turkish Investment Initiative (TII).
TII operates with two separate sub-funds: Istanbul Venture Capital Initiative (iVCi) and Turkish Growth and Innovation Fund (TGIF) (TII).
Having total fund size of EUR 160 million iVCi successfully completed the investment period with nine primary investments and one co-investment. The number of portfolio companies invested in by the 10 portfolio funds is 79 companies including one that has achieved the status of unicorn. iVCi-backed portfolio funds invested a total of EUR 1.58 billion. This represent a net leverage of 9.86x on the iVCi aggregate contribution to these funds. Out of these 79 companies, 59 are in Türkiye and have received 88% of the total investment, totaling EUR 1.42 billion.
TGIF which held its first closing in May 13, 2016 is the second sub-fund of TII. As public institutions, Ministry of Treasury and Finance and KOSGEB played a leading role to improve venture capital and private equity ecosystem in Türkiye and they have backed this mission with EUR 120 million committed in TGIF. With Industrial Development Bank of Türkiye (TSKB)'s participation of EUR 20 million, fund’s total size reached EUR 200 million. TGIF has made commitments to 11 funds which are actively investing into the market. The number of portfolio companies invested by TGIF is now 145 companies, receiving EUR 1.22 billion of investment from TGIF supported portfolio funds, which represent a net leverage of 7.5x on the TGIF aggregate contribution to these funds. Out of these 145 companies, 101 are in Türkiye and have received EUR 1.00 billion 84% of the total investment.
Türkiye Development Fund (TDF)
TDF, founded in 2019 by the Development and Investment Bank of Türkiye (TKYB), aims to invest in companies and funds which support Türkiye’s sustainable development. TDF has 9 sub-funds with a total committed capital of around TRY 5,5 billion (2024YE: TRY 5,1 billion) or approximately USD 140 million as of June 2025. The funds are:
Technology and Innovation Fund
Regional Development Fund
Innovative and Advanced Technologies Participation Venture Capital Investment Fund
Development Participation Venture Capital Investment Fund
DIBT Capital Fund
Invest101
TÜBİTAK BiGG Fund
DIBT Fund of Funds
TÜBİTAK BiGG+ Venture Capital Investment Fund
Through these sub-funds, TDF supports the development of strategically important economic sectors as well as the nascent VC ecosystem of Türkiye. As of June 2025, USD 23,4 million (2024YE: USD 11,5 million) has been committed to seven (2024YE: five) pioneer venture capital and private equity funds through TDF’s sub-funds. Also, TDF’s sub-funds (excluding TÜBİTAK BiGG Fund) have directly invested total amount of USD 26,2 million (2024 YE: USD 19,2 million) in 37 startups (2024 YE: 27 startups). TÜBİTAK BiGG Funds alone has invested USD 9,7 million (2024YE: USD 9,4 million) in 355 (2024 YE: 345) newly established startups.
*Invest101 and Technology and Innovation Fund became separate investors in same two startups.
Source: (Türkiye Development Fund)
TÜBİTAK BiGG Fund
The fund was established by TDF and TÜBİTAK to contribute to Türkiye’s technological development and value-added growth strategy, by investing in newly established startups that have received the seal of excellence under TÜBİTAK 1812 programme at pre-seed stage. The only LP of this fund is TÜBİTAK and the current total commitment is USD 9.7 million. The target size of the fund is USD 25 million
DIBT Fund of Funds
The fund commits only in VC & PE funds that will invest in startups/SMEs which would benefit Türkiye's development and technological competence. The fund size is USD 50 million and main LPs of the fund are Republic of Türkiye Ministry of Treasury and Finance and TKYB.
The aim of this Fund is to support sectors that will contribute to Türkiye's technological development and value-added growth strategy. The duration of the Fund is planned to be 12 years. Additionally, individual and institutional investors, as well as international investment institutions, will be able to participate as investors in the Fund.
Currently, the efforts have been continuing to build the Fund’s portfolio. At this stage, investment decisions have been made for two funds.
1. KOBI Venture Capital Investment Trust Inc. Co. (KOBI VCIT)
KOBI VCIT is a venture capital company which was jointly established with the commitments of TOBB, Halkbank, KOSGEB, TESK and 16 Chambers of Commerce and Industry to orderly meet the financing and management needs of innovative SMEs. KOBI VCIT is subject to the provisions set by the Capital Markets Board, namely the Communique Serial III No. 48-1. and operatings within the regulations of this Communique, KOBI VCIT tries to invest in innovative SMEs with promising market potential. Companies who possess an advantageous and creative position and also an upwards potential when compared to their market peers may receive an investment from KOBI VCIT in terms of capital and managerial support.
To this day, with the support of its shareholders, KOBI VCIT has successfully made several investments in Turkish SMEs. It has built a top performing track record and has proven that the Turkish SMEs market has lot to offer and is very investable. (KOBİ GSYO A.Ş.) Along with increasing the sales and profit margins of some of its SME subsidiaries, KOBI VCIT has also made profitable exits from other investments. KOBI VCIT, along with its public and private partners, has made considerable contribution to the establishment of rules and regulations set forth within the venture capital market. As a result, the SME and investment ecosystem of Türkiye has prospered accordingly. KOBI VCIT has proven to other funds and sector players that investing in the Turkish SMEs market is profitable with distinguished results.
With its local and foreign partners, KOBI VCIT is consistently seeking to invest in new promising Turkish SMEs with the intention of adding value and increasing the size of the related company and as a result contributing to the growth of the Turkish economy. KOBI VCIT is looking to invest in a range of 0.5 – 5 million USD by obtaining a minority share in the related companies. During the partnership, which might last for an average of 5 years, KOBI VCIT plans to grow the investment companies faster, stronger and also in a much more efficient and transparent fashion.
2. TUBITAK’s (The Scientific and Technological Research Council) Research, Technology Development, Innovation (RDI) and Entrepreneurship Supports to SMEs.
TÜBİTAK’s entrepreneurship programmes and related venture funding mechanisms help transform business ideas into technology-based startups. Entrepreneurs have benefited from accelerator services in our entrepreneurship programmes delivered by 149 organisations, including banks, venture capital funds, private sector organisations, universities, TTOs and TDZs. We have shifted the BİGG pre-seed scheme to an investment-based model, launched the BİGG Fund, and in December 2024 created the BİGG+ Venture Capital Investment Fund to co-invest alongside institutional investors and provide seed finance for scaling up. TÜBİTAK BİGG Funds has invested TRY 474 million in 379 newly established startups over the last two years. (TÜBİTAK)
Beyond entrepreneurship support, TÜBİTAK also provides R&D funding instruments for SMEs at different stages of innovation capacity and maturity. Over the last five years, first-time applicants accounted for 45% of entries to the 1507 SME R&D Entry Programme and more than 20% of entries to the 1501 Industry R&D Programme, pointing to a steadily broadening participation base. While both programmes serve SMEs, 1507 is specifically designed for firms that are newly initiating RDI activities, supporting their first five projects, including partnership-based ones, and helping them build an initial R&D and innovation track record. In terms of results of an analysis performed in 2025, firms supported under 1501 recorded net sales growth 140.5% higher than comparable non-supported firms, while the impact was even stronger under 1507, where net sales growth reached 255.2% above the control group. For these programmes, 3.957 projects of 2.844 SMEs have been supported over the last two years.
In addition, TÜBİTAK also supports demand-driven innovation and solution development through more targeted SME-focused mechanisms. Under the SME Support Call for Order-Based R&D Projects, R&D activities carried out by SMEs in response to customer needs are supported with the aim of accelerating the market entry of innovative products and services. TÜBİTAK also supports SME participation in mission-oriented AI development through a dedicated AI Ecosystem Support Mechanism, which brings together customer organisations, SME technology providers, research institutions, and the TÜBİTAK AI Institute to translate concrete demand into deployable AI solutions. For these programmes, 213 projects of 208 SMEs have been supported over the last two years.
For the internationalisation of SMEs , various support programmes are carried out by TÜBİTAK in order to increase the participation of Turkish SMEs in international R&D collaborations. innovative SMEs in Türkiye are encouraged to take part in international R&D projects through the EUREKA and EUROSTARS programmes. EUREKA is an international co-operation platform established with the participation of 47 member countries and aims to support market-oriented R&D projects. Thanks to this platform, Turkish SMEs establish international partnerships and develop innovative products, processes and services. EUROSTARS is a programme that provides support to international R&D projects, especially those led by SMEs, carried out in partnership with EUREKA and the European Commission with the aim to increase the R&D capacities of SMEs and facilitate their access to global markets.
Angel investments regulations
In order to develop the angel investment ecosystem, activities have been carried out since 2013 within the framework of the Individual Participation Capital (IPC) system, implemented by the Ministry of Treasury and Finance (MoTF) in accordance with the relevant legislation. These activities aim to create new financing methods for startups facing difficulties in accessing funding and to encourage individual participation investors through government support.
This legal framework provides a mechanism for licensing business angels, which will ease access to finance for entrepreneurs, increase professionalism and improve business culture and ethics in the angel investment market. In this respect, the licensing mechanism provides a new instrument for those enterprises, which have funding difficulties with conventional financing in their early stages. Furthermore, it makes business angel investments an institutionalised and trustworthy financial market and eligible for state support. Angel investor licenses issued by the MoTF are valid for five years.Licensed business angel investors can deduct from their annual income tax base 75% of the capital they invest in innovative and high growth SMEs whose shares are not traded at the stock market. For Licensed business angel investors who invested in projects supported by the Ministry of Industry and Technology, the Scientific and Technological Research Council of Türkiye (TÜBİTAK) and the Small and Medium Enterprises Development and Support Organisation (KOSGEB) in the last five years, the 75% discount rate is applied as 100%.
Moreover, the acquired shares must be held by investors for at least two years in order to benefit from the tax incentive. The maximum annual amount which can be deducted from the income tax base is TRY 2.5 million.
Within this scope, from the date the legislation came into effect until December 31, 2024, a total of 1,123 angel investors have been granted licenses, and 237 angel investors have provided funding amounting to TRY 45.4 million to 81 companies.
As a general problem of the global entrepreneurship ecosystem, insufficient data regarding business angel investment is a critical issue at both the national and international level. Licensing will improve data collection regarding business angel operations due to the fact that the MoTF has a database which aggregates the data.
Borsa Istanbul’s Private Market is a web-based platform initiated in November 2014, which brings together companies and investors in order to buy or sell shares without going public. It offers liquidity for companies intending to sell their shares and offers investors the chance to find buyers to liquidate their investments. It also informs and offers access to third party events and organises B2B events for start-ups. Since its establishment in 2014, Borsa Istanbul’s Private Market has so far mediated 16 deals between start-ups and investors, be it individual or institutional investors such as Venture Capital Funds or Private Equity’s. The deal size so far is USD 11 million. (Borsa Istanbul)
Borsa Istanbul’s Private Market currently has 373 members, 220 of them are start-ups (156) and pre-IPO (64) companies. 116 of them are investors, both individual (82) and institutional (34). In addition to companies and investors Borsa Istanbul’s Private Market has also 37 intermediary and service providing members such as Law firms that can provide due diligence services and can assist on agreements between start-up companies and investors. Another aim of Borsa Istanbul’s Private Market is to introduce start-ups to the capital market ecosystem and prepare them for IPO’s. An example for that is Smartiks Yazilim A.Ş. who became a member of Borsa Istanbul’s Private Market in 2016 and went public in 2019, which is the outcome and main goal that Borsa Istanbul’s Private Market is aiming to achieve.
Borsa İstanbul’s Venture Capital Market (VCM) was established in September 2023, in order to ensure that companies that demand equity financing for growth, can obtain funds by issuing shares only to qualified and institutional investors through capital increase and to enable shares to be traded on the Equity Market. Companies that want to obtain financing through capital markets, will sell their issued shares to qualified and institutional investors through intermediary institutions. These shares will only be traded among qualified and institutional investors on VCM, if they meet the necessary conditions of the Listing Directive and if their prospectus prepared within the framework of the “Communiqué on Principles Regarding Corporations Whose Shares Will Be Traded On VCM” is approved by the Capital Markets Board (CMB).
Companies will be considered public and will be subject to CMB’s regulations, when they start to be traded on VCM. Thus, being traded on VCM will contribute to the institutionalisation of companies with the support of institutional investors. Companies that have completed the necessary institutionalisation steps and grown by making investments will be ready for public offering and will be able to apply to offer their shares to the public. In this way, companies will find financing opportunities earlier and will achieve their growth and institutionalisation in a healthier way.
26 Development Agencies (DAs) operating under the co-ordination of Ministry of Industry and Technology (MoIT), are designed as co-ordinating, organising and catalyst bodies that support regional development, ensure its sustainability and help reduce intra- as well as interregional development disparities in accordance with the principles and policies set out in the National Development Plans and Programmes.
The total amount of grants for SMEs provided by Development Agencies has reached over TRY 2.04 billion during the 2008–24 period, through 6 424 projects. As shown in Table 8, the total volume of resources devoted to regions has exceeded TRY 4.61 billion, including co-financing. By the end of 2025, the support figures have increased to TRY 90 billion, and to TRY 150 billion including co-financing, both at constant prices.
Note: * There was no Financial Support Programme for SMEs in 2017
Source: Ministry of Industry and Technology (Kalkınma Ajansları)
Development Agencies Support Entrepreneurship
DAs in Türkiye provide financial and technical support to develop entrepreneurship infrastructure and ecosystem. This includes establishing and strengthening entrepreneurship centres, incubators, and accelerators, as well as providing training and consultation services to entrepreneurs on various issues such as business plans, internationalisation, marketing, and finance. DAs also offer entrepreneurship training to primary and secondary school students to cultivate entrepreneurial talent from a young age. DAs are currently focusing on assisting angel investment and networks through awareness-raising, capacity-building activities, and the promotion of existing and new networks.
Istanbul Development Agency Entrepreneurship Programme
The Ministry of Industry and Technology (MoIT) has identified strengthening the entrepreneurship ecosystem as a key priority. Istanbul has been recognised as a global hub for innovation and technology-based startups, and efforts are being made to provide suitable conditions for their growth and international expansion. The National Technology Entrepreneurship Strategy and Turcorn 100 Programmeme have set targets for technology entrepreneurship, including special measures for Istanbul and international collaborations with EU countries. The 2024-2028 Istanbul Regional Plan has identified entrepreneurship as one of its five strategic priorities, aiming to establish Istanbul as a leading global entrepreneurship centre. The Istanbul Development Agency (İSTKA) implements the Entrepreneurship Result Oriented Programmeme to strengthen the city's entrepreneurship ecosystem, with a focus on technology, innovation, and creativity.
Ankara Development Agency Regional Venture Capital Programmeme for Impact Investing
The Ankara Development Agency is implementing the "Regional Venture Capital Financial Support Programmeme for Impact Investing" in Ankara and the provinces affected by the 2023 earthquake. This programmeme aims to provide financial support to initiatives with the potential for rapid growth and positive social and environmental impact. The venture capital fund focuses on social and environmental impact, in addition to financial returns, and aims to strengthen the entrepreneurship and innovation ecosystem in this area. It is designed as a "Fund of Funds" and is the first of its kind in Türkiye. The programmeme has received 26 applications and has garnered great interest from funds. A total commitment of 250 million TL has been made with the selected funds, aiming to create a total impact investment of 1 billion TL.
Bursa Eskişehir Bilecik Development Agency (BEBKA) Regional Venture Capital Programme
BEBKA launched Regional Venture Capital Programme to provide financial support to start-ups having high growth potential and creating high value added in the region. With this programme venture capital funds will be supported with a total of TRY 100 million budget. Through these funds, it is aimed to strengthen the entrepreneurship ecosystem in this region by increasing access of companies and start-ups to finance. The programme is under implementation phase and attracted high interest from various venture capital funds and private equity funds. A total of 23 fund applications were made to the programme, and as a result of the evaluation and negotiation process, investment agreements were signed with 6 funds.
ISTKA Regional Venture Capital Programme
ISTKA launched Regional Venture Capital Programmeto provide financial support to start-ups having high growth potential and creating high value added in İstanbul. Venture capital funds are supported with a total of TRY 400 million budget in the scope of this programmeme. Through these VC funds, it is aimed to increase the access of startups to finance and strengthen the entrepreneurship ecosystem by ensuring investments in technology-based startups that produce high added value. A total of 28 fund applications were made to theprogramme, and as a result of the evaluation and negotiation process, investment agreements were signed with 9 funds.
97. The parliament enacted the Leasing, Factoring and Financing Companies Law in November 2012 which streamlines previous leasing, factoring and financing company regulation. This law is expected to help the non-banking financial sector growth and improve SMEs’ access to finance, especially by expanding the variety and size of the leasing instruments available to them.
Claims from leasing transactions increased over the last two years. Leasing companies’ claims from leasing transactions reached TRY 234 billion from TRY 189.7 billion, with a 23% increase in the 2023-2024 period. On the other hand, in the same period factoring companies’ claims from factoring transactions increased from TRY 196.9 billion to TRY 287.9 billion, with a 46% increase in the 2023-2024 period.
Source: See Table 12.
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