Small and medium-sized enterprises (SMEs) underpin the economies of the Western Balkans and Türkiye, accounting for the majority of employment and value added. Their competitiveness and resilience are therefore central to sustainable growth and economic convergence with the European Union.
Yet SMEs operate in an increasingly demanding environment shaped by global uncertainty, the digital and green transitions, and demographic change. While these shifts create opportunities, they also expose persistent weaknesses—including fragmented policy frameworks, limited greening, uneven digital adoption and skills gaps—that constrain firm-level resilience and adaptability. Addressing these challenges requires policies that not only support growth, but strengthen enterprises’ capacity to anticipate shocks, adapt to changing market conditions and sustain performance over time.
The seventh edition of the SME Policy Index for the Western Balkans and Türkiye provides a comprehensive assessment of SME policy progress since 2022, based on the OECD’s established methodology and aligned with OECD and EU good practices. It identifies achievements, remaining gaps and actionable recommendations to strengthen policy effectiveness.
This economy profile assesses performance across 13 policy dimensions and examine progress through four thematic policy clusters. A companion regional profile synthesises shared trends, common challenges and cross-cutting priorities across the seven participating economies.
