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SMEs
                      &
                    KOSGEB

                             Small and Medium Enterprises
                              Development Organisation
                                    ANKARA, 2012




www.kosgeb.gov.tr
CONTENTS
         GENERAL INFORMATION ABOUT TURKEY
         SME CONCEPT
         Their Role in Economy, SME Policies, Their Strengths
         SMEs IN TURKEY
         SME Policies, Institutional Structure, Problems
         KOSGEB
         Function, Administrative Structure, Supports and Activities




www.kosgeb.gov.tr
REPUBLIC OF
        TURKEY
                     783.562 m2 area,
                     74.7 million population (TUİK 2011),
                     Young population; average age: 29.7 (TUİK 2011),
                     76% population live in urban areas, 24% in rural areas,
                     World’s 17th; Europe’s 6th largest economy (IMF, 2011),
                     According to 2011 growth rates, second in the World.




www.kosgeb.gov.tr
MAIN ECONOMIC
     INDICATORS
     TEMEL EKONOMİK
               VERİLER     2008      2009      2010      2011
     GNP (000 000 $)      742.094   616.703   734.929   766.400

     GNP per capita($)    10.438     8.559    10.067    10.363
     Export (billion $)    132        102      113       134
     Import (billion $)    201        140      185       240
     Unemployment           11        14       11,9      10,5
     Infation              10,1       6,5       6,4      7,8
     Growth                0,7        4,8      8,9       8,5

     Share of R&D
     Expenditure in GNP
                           0,73      0,85      0,84



www.kosgeb.gov.tr
WHAT IS       SME :Small & Medium Enterprises
        SME?          (EU, World Bank, UN)
                     SMB: Small & Medium Business (ABD)
                    SME DEFINITIONS
                     Different thresholds are applied for maximum number of employees in
                       different countries:
                    -In Japan 250,
                    -In the USA 500,
                    -In Turkey 150 (until 2006, according to KOSGEB)
                     In some countries SMEs are defined by only financial thresholds;
                      -In Brazil enterprises whose annual income is less than Brazil Real of 90

www.kosgeb.gov.tr
                       million.
WHAT IS           EUROPEAN UNION SME DEFINITION
      SME?              The most widespread definion in international area: EU
                       SME Definition
                        It is used for monitoring the rules for Competition Policy,
                       however every country is free in their national legislation.
                       (Financial threshold is regarded for public aids. )

                                         Number of        Annual             Annual Balance of
                    Category             Employees       Revenue                Payments

                    Medium                 < 250      ≤ € 50 million           ≤ € 43 million
                                                                       or
                    Small                   < 50      ≤ € 10 million           ≤ € 10 million

                    Micro                   < 10       ≤ € 2 million           ≤ € 2 million
www.kosgeb.gov.tr
THEIR ROLE IN
     ECONOMY         Backbone of Economy;
                    -99.8% of enterprises in EU (EUROSTAT)
                    -90% of enterprises in developing countries (Peter Pang, BIS)
                     Their most remarkable characteristic is creation of employment;
                    - In the USA 47 % of employment (OECD)
                    - In China 50 % of employment (Peter Pang, BIS)
                    - In EU countries 77 % of employment (EUROSTAT)
                    - In Brazil 62 % of employment (IBGE)




www.kosgeb.gov.tr
THEIR ROLE IN
     ECONOMY         Major source of Value Added in Economies;
                    - In EU Countries 58% of total value added (EUROSTAT),
                    -In Japan 53% of total value added (Japan Ministry of Internal Affairs),
                    - In South Korea 51% of total value added (OECD)
                     High investment potential;
                    - In Japan 40% of total investment
                    - In the USA 43% of total investment




www.kosgeb.gov.tr
STRENGTHS      Flexibility in decision making mechanisms,
                     Enthusiasm of managers for growth and entrepreneurship,
                     Eagerness for innovation,
                     Faster adaptation to changes in market and technology, compared to
                       large enterprises,
                     Better knowledge of local markets due to physical closeness to
                       customers,
                     Specialisation in products, increasing product diversification,
                     Resistance to economic fluctuations due to high share of owner’s equity




www.kosgeb.gov.tr
SME POLICIES    Between 1945-1970:
    IN THE WORLD
                        -Policies directed to large enterprises to eliminate the effects of 2nd
                       World War and ensure capital accumulation.
                     Importance of SMEs are realised by policy makers after economic
                      problems such as Oil Crisis of 70s and unemployment in 80s.
                      Because,
                       -SMEs are less affected by problems compared to large enterprises.
                       -They make important contribution to business and employment creation.
                     Not only Western but also developed Far Eastern Countries (Taiwan,
                      South Korea), owe their industrial development of today to their dynamic,
                      SME oriented industries.
                     Globalisation:
                       -Modern SME Policies: Entrepreneurship, innovation, environment,
                       energy,
                       -European Union SME Policies
www.kosgeb.gov.tr
SME POLICIES IN EU
     SME POLICIES   Objectives:
    IN THE WORLD    Drawing attention to SMEs potential in entrepreneurship and
                    employment creation,
                    Establishing entrepreneurship culture,
                    Improving business environment (technical and administrative,)
                    Providing new financial sources,
                    Encouraging innovation and R&D activities,
                    Increasing awareness and capabilities in environment and energy,
                    SME Definition: 1996 and 2003,
                    Europe Small Enterpirises Charter: 2000 (Principles),
                    EU Small Business Act: 2008 (Principles and Applications),
                    Community Programs: CIP, 7FP (Applications and Financial Support)


www.kosgeb.gov.tr
SMEs IN    Ministry of Science, Industry and Technology
         TURKEY     Regulation in Definition, Qualifications and Classification of Small
                    and Medium Sized Enterprises


                    Small and Medium Sized Enterprise (SME): Enterprises which
                    employ less than 250 employees, and whose annual net sales
                    revenue or financial balance of payments do not exceed 25 million
                    TL and classified as micro enterprise, small enterprise or medium
                    scaled enterprise according to this Regulation




www.kosgeb.gov.tr
SMEs IN
                      SME DEFINITION IN TURKEY
         TURKEY
                      has been harmonised with EU definition in 2006.


                                       Number of                         Annual Balance
                                                                    or
                    Category           Employees Annual Revenue           of Payments
                                                 ≤ 1 million TL          ≤ 1 million TL
                    Micro              1-9            ($                       ($
                                                 570.000) TL
                                                 ≤ 5 million             570.000) TL
                                                                         ≤ 5 million
                    Small              10-49           ($ 2.9                  ($ 2.9
                                                 milyon)                 million)
                                                 ≤ 25 million TL         ≤ 25 million TL
                    Medium             50-249          ($ 14.3                 ($ 14.3
                                                 million)                milyon)

                    1TL=$1,75 (2012)

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SMEs in
         TURKEY                   DISTRIBUTION OF TURKISH ENTERPRISES
                                  ON SCALE BASIS




                    (TUIK 2008)
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SMEs in      SECTORAL DISTRIBUTION OF ENTERPRISES
        TURKEY




                    (TUIK 2008)
www.kosgeb.gov.tr
IMPORTANCE
      of SMEs in                  SMEs in TURKISH ECONOMY
       TURKEY
                    Number of SMEs       2.580.075          99.9 %
                       Number of
                        Persons          7.865.403          78 %
                       Employed
                    Generated Added
                                        150 billion TL      55 %
                         Value

                      Investment
                                        51 billion TL       50 %
                    Amount Achieved
                        by SMEs
                                   55 % of TOTAL EXPORTS
                    (TUIK 2008)
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DEVELOPMENT STAGE
                    Before 1950’s:
     SME POLICIES
      in TURKEY     -SMEs were very small and established with inadequate working capital
                    ,
                    -Working with family members or craftsmanship
                    1960’s: Growing trade activities as a result of the rise in the welfare
                    of EEC countries,
                    1963: Five-Year Development Plan; approaching ‘small industries’
                    1980’s: General re-organization of economy in Turkey, liberalization ,
                    globalization
                    1990: Establishment of KOSGEB
                    1996: Customs Union
                    -Experiencing the international competitiveness,
                    -Concentration of public measures
                    2000 and beyond: EU effect
www.kosgeb.gov.tr
SME STRATEGY AND ACTION PLAN (2011-2013)

         POLICY
                       9.MULTI ANNUAL DEVELOPMENT PROGRAMME
                                       KOSGEB STRATEGIC PLAN
         MAKING
                                          (2007-2013)
                      Sinceto National Papers and institutional mission;
                     Parallel 2003
                      Produced along with EU accession
                     Objective 1 : Developing managerial and institutional
                    Essential document guidelining transitions on
                      Develops business environment sensitive to needs of SMEs
                     skills of SMEs
                    economic, cultural and social issues.
                      Main 2 : Increasing R&D and innovation driven
                    Includes; strategy areas;
                     Objective
                    -Mid-Term Programme (2010-2012) SMEs transfer them
                     -Supporting entrepreneurship that
                     activities of SMEs, and ensuring
                     into new investments,
                    -Annual Programme (2012) institutional skills of SMEs
                     -Developing managerial and
                     Objective 3 : Disseminating entrepreneurship culture to
                     -Paying attention to SMEs while developing business environment
                     help set new firms
                     -Enhancing R&D and innovation capacity of SMEs
                     Objective 4 : Providing development of the organization
                     -Helpingqualitative service
                     to offer SMEs to easier access to financial sources



www.kosgeb.gov.tr
ORGANIZATIONAL
      STRUCTURE




www.kosgeb.gov.tr
INSTITUTIONAL           INSTITUTIONS                        ACTIVITIES
       STRUCTURE          NON-GOVERMENTAL
                           ORGANIZATIONS
                    UNION OF CHAMBERS AND       Representing the private sector, providing the
                    COMMODITY EXCHANGES OF      solidarity and the association between the
                    TURKEY                      Chambers and the Commodity Exchanges

                                                Coordination and representation of craftsmen
                    CONFEDERATION OF TURKISH
                                                and artisans, vocational assessment of the
                    TRADESMEN AND CRAFTSMEN
                                                members, providing vocational trainings

                    TECHNOLOGY DEVELOPMENT
                                                Supporting technology development projects
                    FOUNDATION OF TURKEY
                    SMALL AND MEDIUM SIZED
                    ENTERPRISES SELF EMPLOYED   Declaring opinions related to the SMEs, in
                    PERSONS AND MANAGERS        varied working environment
                    FOUNDATION OF TURKEY


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PROBLEMS OF
    TURKISH SMEs    ? Finance and guarantee problems,
                    ? Lack of qualified human resources,
                    ? Inadequacy of capital formations for know-how and
                       technology investments,
                    ? Being open to the innovation but being reluctant to
                       implement asserting the high costs,
                    ? Lack in marketing skills,
                    ? Not making feasibility works or business plans even if they
                       have the entrepreneurial spirit,
                    ? Having a limited knowledge and awareness in topics such as
                       Industrial Property Rights, quality and environmental
                       protection


www.kosgeb.gov.tr
KOSGEB
                    SMALL AND MEDIUM ENTERPRISES DEVELOPMENT ORGANIZATION


                    Established in 1990,
                    Focusing only on SMEs, the unique public institution
                    -Providing services parallel to the economy policies of the country,
                    Sectors to be supported are identified by the decisions of the Council
                    of Ministers,
                    Every enterprise defined as SME is in its target beneficiary:
                    -A total of 2.580.070 enterprises (2008 TUİK)



www.kosgeb.gov.tr
VISION OF
        KOSGEB       To be a model organization in the world, which is effective in
                        determining SME and entrepreneurship policies, which
                    encourages the SMEs to undertake an important role in global
                                               market
                        Takes the National Development Plan into consideration:
                      -Prioritized sectors,
                       Takes the socio-economic roles of SMEs into consideration:
                      -Supporting mechanisms developed according to the geographic and
                         inter-regional differences,
                      -Improving the job creation and employment capacities.



www.kosgeb.gov.tr
VISION OF KOSGEB
         KOSGEB

                    Takes the necessities of globalization and the competitiveness into
                    consideration, which are:
                    -Increasing the exporting capacities of SMEs,
                    -Providing access to the valuable information and the networks,
                    -Internationalization of SMEs,
                    -Increasing the innovation levels.
                    Takes the modern SME policies in to consideration:
                    -Strong cooperation with the international institutions,
                    -Renovated supporting mechanisms based on the projects.

www.kosgeb.gov.tr
-Meeting annually
        KOSGEB                     -Setting out principles of annual
    ADMINISTRATIVE                 work plans in accordance with the
      STRUCTURE                    Development Plan and Programs
                        GENERAL
                        ASSEMBLY         Taking decisions about the budget
                                         and implementation in accordance
                                         with the principles set out in the
                               EXECUTIVE General Assembly
                                COMITEE

                                    OFFICE OF PRESIDENCY
                                      –THE PRESIDENT-

                                              MONITORING,
                     UNITS DEVELOPING
                     MODELS AND POLICY
                                             EVALUATION AND       SERVICE CENTERS
                                           COORDINATION UNITS


www.kosgeb.gov.tr
UNITS                -ENTERPRENEURSHIP DIVISION
       DEVELOPING     - REGIONAL AND LOCAL DEVELOPMENT DIVISION
       MODELS AND   -SME MARKET RESEARCH AND EXPORT PROTMOTION
         POLICY                          DIVISION
                        -SME TRAINING AND CONSULTANCY DIVISION
                             -SME FINANCE RESEARCH DIVISION
                             -PROJECT COORDINATION DIVISION
                         -TECHNOLOGY AND INNOVATION SUPPORTS
                                       DEPARTMENT
                            -Designing regional and local development models
                            -Continuous improvement of KOSGEB Support Models
                            -Developing new financial instruments
                            -Providing solutions to the training and consultancy needs
                            of enterprises
                            -Making researches on foreign markets and the legislation
                            -Designing SME-oriented projects or supporting projects
                            developed by the SME
                            -Planning supports and actions focused on Technology and
                            Innovation
www.kosgeb.gov.tr
SERVICE
          UNITS
                           -KOSGEB SERVICE CENTERS (75)
                      -TECHNOLOGY DEVELOPMENT CENTERS (28)
                        -R&D INNOVATION COOPERATIONS (45)
                    -TECHNOLOGY INCUBATORS WITHOUT WALL (8)
                            -SYNERGY FOCAL POINTS (77)

                      -Strengthening the relation between industry and public
                      -Provision of KOSGEB support mechanisms
                      -Improving the cooperation between universities and
                       industry
                           STRUCTURES WHICH ARE IN DIRECT CONTACT
                                            WITH SMEs.
www.kosgeb.gov.tr
KOSGEB
    SUPPORTS and
      SERVICES
                    WHO CAN BENEFIT FROM KOSGEB SERVICES?


                    Any SME which was established in Turkey and registered in KOSGEB
                    Data Base,
                    -Web-based system; www.kosgeb.gov.tr
                    -FOR REGISTRATION; Filling SME Information Form, Selection of
                    Service Center
                    635.000 registered SMEs in KOSGEB Data Base



www.kosgeb.gov.tr
SECTORAL DISTRIBUTION OF
         KOSGEB        FIRMS IN KOSGEB DATA BASE
    SUPPORT&SERVICES




www.kosgeb.gov.tr
KOSGEB
    SUPPORTS and
      SERVICES        MAIN
                                                                        OTHER
                    OBJECTIVES       SUPPORT
                                                      SME CREDIT
                                                     MECHANISMS        SERVICES
                                    MECHANISMS
                    -Competitive
                       SMEs                            -Alternative   -Cooperation
                                                     finance model     activities for
                                      -Project                        the benefit of
                    -Business and     Oriented       -Contribution
                                                      to National          SMEs
                     Employment     -For the needs   SME Finance       -Activities
                                    and problems        System         under EU
                      -Models          of SMEs                        membership
                                                      -Easy access
                     Parallel to                     to sources for     process
                     Economic                            SMEs           -Projects
                      Policies                                         -Laboratory
                                                                         Services


www.kosgeb.gov.tr
SUPPORT                                                    -Manufacturing,
     MECHANISMS                                           -Management Organization,
                             SME PROJECT                            -Marketing,
                               SUPPORT                            -Foreign Trade,
                             PROGRAMME                         -Human Resources,
                                                           -Financial and fiscal affairs,
                                                           -Information Management

                                                        -Promoting projects developed in
                                                         order to attain flexible solutions
                                                         to enterprise specific problems,
                    Project costs to be supported are
                     decided by KOSGEB Evaluation       -Establishment of project culture
                          and Decision Board.              and consciousness at SMEs,
                                                           -Improving project making
                                                               capacity of SMEs

www.kosgeb.gov.tr
SUPPORT
    MECHANISMS                                          Thematic Programme Based on
                             THEMATIC                  Call: KOSGEB determines the area
                              PROJECT                            for call itself.
                              SUPPORT                  Professional Organization Project
                            PROGRAMME                   Support Programme: The owner
                                                       of the project idea determines the
                                                                       area.


                                                         -Aiming the thematic areas at
                                                          macro strategy documents,
                          MAIN OBJECTIVE:
                                                       -Taking into account regional and
                    Ensure compliance of SMEs with               sectoral needs,
                       national and international
                      legislation and the priorities        - Promoting professional
                                                          organizations for developing
                                                        projects for the benefit of SMEs
www.kosgeb.gov.tr
SUPPORT
    MECHANISMS                               MAIN COOPERATION AREAS:
                        COOPERATION              -Supply, marketing,
                       COLLABORATION
                          SUPPORT              -Low capacity utilization,
                        PROGRAMME           -Weak competitiveness power,
                                                       -Finance


                                               - At least 5 business come
                                               together to enhance their
                                             capacity and competitiveness,
                    “Common solutions for   - Benefiting from economies of
                      common problems”         scale to provide resource-
                                                       conserving,
                                            -Developing cooperation culture
www.kosgeb.gov.tr
SUPPORT                                           MAIN SUPPORT ITEMS
    MECHANISMS
                         R&D, INNOVATION              -Machinery, equipment,
                          AND INDUSTRIAL              hardware, raw material,
                         IMPLEMENTATION                -Softare and services
                             SUPPORT
                           PROGRAMME                           -Staff,
                                                  -Technopark rent, Industrial and
                                                     Intellectual Property Rights

                                                       -Developing SMEs and
                                                   entrepreneurs possessing new
                    - R&D Innovation Programme     ideas and inventions based on
                     -Industrial Implementation       science and technology,
                             Programme            -Supporting innovation activities,
                                                  -Commercializing results of R&D
                                                     and Innovation Projects
www.kosgeb.gov.tr
SUPPORT                                    3 SUB PROGRAMMES:
    MECHANISMS
                                              - Applied Entrepreneurship
                     ENTREPRENEURHIP                   Trainning
                         SUPPORT              -New Entrepreneur Support
                       PROGRAMME
                                              -Business Incubator (İŞGEM)
                                                        Support


                                             -Supporting entrepreneurship
                      TARGET GROUP:
                                              -Establishing successful and
                       -General groups           sustainable businesses,
                       -Young people        -Disseminating entrepreneurship
                         -Women                         culture,
                    -Disadvantaged groups    -Promoting entrepreneurship
                                                based on local dynamics
www.kosgeb.gov.tr
SUPPORT                                                           ON;
    MECHANISMS                                          Domestic Fairs, Foreign Business
                                                         Travel, Promotion, Matching,
                               GENERAL
                                                        Qualified Personnel, Training and
                               SUPPORT
                                                         Consultancy, Energy Efficiency,
                             PROGRAMME
                                                              Design,Certification,
                                                             General Test-Analysis,
                                                                   CE Marking
                                                         - Enabling SMEs to produce high
                                                        quality and efficient goods/services,
                             Target Group:
                                                             - Encouraging the general
                     -SMEs having low capacity of        enterprise development activities
                         developing progect                        of the SMEs,
                    -SMEs in sectors just included to   - Promoting marketing activities of
                        KOSGEB target group                SMEs in order to expand their
                                                        domestic and international market
                                                                      shares
www.kosgeb.gov.tr
SUPPORT
                                                              GOING-PUBLIC PROCESS
    MECHANISMS
                               EMERGING                   -Ensuring being processed in the
                              ENTERPRISES                 Istanbul Stock Exchange Market
                              MARKET SME                    (IMKB) Emerging Enterprises
                                SUPPORT                               Market,
                              PROGRAMME
                                                          -Providing opportunity to procure
                                                             funds from capital markets

                    - Market counselor consultancy fee,
                     commission to intermediary fee,
                    -Independent auditing service fee,        For the SMEs having
                         -Capital Market Board(SPK)         development and growth
                               registration fee,
                                                                    potential
                     - Istanbul Stock Exchange (IMKB)
                        Market Emerging Enterprises
                         Market List acceptance fee
www.kosgeb.gov.tr
SPECIAL PURPOSE CREDITS
   KOSGEB CREDIT
    AND FINANCE             MAIN OBJECTIVE:                      -Employment Credit
    MECHANISMS                                                      -Export Credit
                     Find traditional and alternative
                    solutions to the financial needs of     -Machinery-Equipment Credit
                                  SMEs in                         -Emergency Credit
                                                             -Operational Capital Credit


                                 PROCESS                   KOSGEB PROVIDES ALTERNATIVE
                           -Low interest rate              FINANCE SOLUTIONS FOR SMEs;
                    -Covers all the interest or a large   -Credit Guarantee Fund is established
                                proportion                  within the partnership of KOSGEB,
                        -Possibility of long-term           TOBB, 20 public and private Banks.
                                repayment                 KOSGEB is partner of KOBI AS, serving
                      -KOSGEB credit guarantee for          venture capital and IVCI (Istanbul
                                                               Venture Capital Initiative).
                               main capital
www.kosgeb.gov.tr
BUDGET
                            KOSGEB BUDGET NUMBERS
       NUMBERS


                    KOSGEB BUDGET (2012)                       253 MILLION $

                    REALIZED AMOUNT AS KOSGEB SUPPORT          168 MILLION $
                    (2011)
                    REALIZED SUPPORT RATIO IN OVERALL BUDGET            %69
                    (2011)
                    NUMBER OF APPLICANT SMEs (2010)                  12.967

                    NUMBER OF APPLICANT SMEs (2011)                  30.000


                    1$=1,75 TL
www.kosgeb.gov.tr
Number of   Number of     Realized
                                                  Number of
                       SUPPORT PROGRAM                      Approved     Projects     Support
                                                  Aplicants
     SUPPORTS IN       (1$=1,75 TL)                          Projects    Granted      Amount
      NUMBERS SME Project Support
     (2010-2011) Programme                          2,079     1,427       399       8.2 Million $
                    Thematic Project Support
                                                     59        23          3        43.3 Million $
                    Programme
                    Cooperation&Collaboration
                                                    116        90          42       5.6 Million $
                    Support Programme
                    R&D, Innovation and
                    Industrial Practice Support     2,328     1,126       1,569     23.1 Million $
                    Programme
                    Entrepreneurship Support
                                                    3,45      2,716       4,133     11.8 Million $
                    Programme
                    General Support Programme      34,881       -        18,879     36 Million $
                    Developing Enterprises
                    Market SME Support               5          1          0              0
                    Programme
                             OVERALL               42,918     5,383      25,025     85 Million $
www.kosgeb.gov.tr
KOSGEB TECHNOLOGY
       SUPPORTS      KOSGEB TECHNOLOGY
                       AND INNOVATION
            NUMBER OF APPLICANTS
                     SUPPORTS (MILLION $) 4,082
           NUMBER SUPPORTED NEW1.7
                       2003
         NUMBER OFOF SUPPORTED PROJECT 2255
                                                             881
         ENTREPRENEURS
                       2004        7.3
           COMPLETED PROJECTS
         CONTRIBUTION TO EMPLOYMENT       1,212            15257
         NUMBER OF COLLECTED
                       2005        4.6
         PATENT/UTILITY RATIO BY SUPPORTED 55%
           COMPLETION MODEL                                  312
         FIRMS         2006        2.1
         NUMBER OF SMEs MOVED TO
                                                             114
         TECHNOPARKS AFTERPROJECTSFACILITY 881
           COMMERCIALIZED KOSGEB 1.7
                       2007
           COMMERCIALIZATION RATIO
         SALE VOLUME OF SUPPORTED 2.6
                      2008        FIRMS          73%494 Million $
         EXPORT VOLUME OFOF WORKSHOPS 195
           ACTUAL NUMBER SUPPORTED FIRMS 97.5 Million $
                     2009       2.5
                  RATIO OF WORKSHOP FULLNESS     72,31%
               Numbers belong to 1992-20123.7
                             2010           term
                  Numbers belong to 1992-2012                       1$=1,75 TL
                             2011         11.2
www.kosgeb.gov.tr term
KOSGEB
        ENTREPRENEURSHIP
            SUPPORT

                                         2010   2011
                   Number of          2010 Number of         Number of
  KOSGEB NEW ENTREPRENEUR     Number of           2011
       Support      İŞGEM*                   workshops        Current
  SUPPORT ($)
       PRACTICAL ENTREPRENEUR workshops
                                  530.455 80.347.726
    Programme for                         actually occupied Employment
  NUMBER OF SUPPORTED
       TRAINING                        309        1389
      Developing
  ENTREPRENEURS                     134         3147
       Women OF PARTICIPANTS
       NUMBER                        11.534      47.480
   Entrepreneuship     3         73               42            72


   As of December, 2011 (*İŞGEM: Business Development Center)
www.kosgeb.gov.tr
Amount of
    KOSGEB CREDIT SUPPORT                                                           Contribution
                                                          Credit       Interest
        MECHANISMS                        Number of                                      to
                                                         Volume       covered by
                                          Beneficiary                               Employment
                                                        Assigned to    KOSGEB
                                             Firm                                      (Staff
                                                           firms      (Million $)
                                                                                     headcount)
           THEME OF CREDIT INSTRUMENT                   (Million $)
        SME SUPPORT CREDITS
        SME EXPORT SUPPORT CREDITS

        SME EMPLOYMENT SUPPORT CREDITS
        MACHINERY&EQUIPMENT SUPPORT
        CREDITS FOR FOOD INDUSTRY
        TRANSFER TO OIZ SUPPORT CREDITS   204.781          6.4          0.56         32.623
        FOR LEATHER SECTOR
        INFORMATICS SUPPORT CREDITS
        SME MACHINERY&EQUIPMENT
        SUPPORT CREDITS
        MANUFACTURER ARTISANS SUPPORT
        CREDITS

www.kosgeb.gov.tr
SECTORAL DISTRIBUTION
      OF KOSGEB SUPPORTS




www.kosgeb.gov.tr
DISTRIBUTION OF
       SUPPORTED FIRMS ON
           SCALE BASIS




www.kosgeb.gov.tr
PROJECT FOR IMPLEMENTATION
   OTHER SERVICES                                        OF SMALL BUSINESS ACT IN
                                                          BALKAN COUNTRIES AND
                           EU ORIENTED                           TURKEY
                         KOSGEB ACTIVITIES                -Pictures actual situation of the
                                                            country in scope of the Act,
                                                         -Puts efforts on building suitable
                                                       environment to SMEs with field actors


                                                      ENTERPRISE EUROPE NETWORK
                                                              -National Coordinator
                         EUROPEAN SME WEEK           -Manages 7 consortia of which 5 are
                     Turkey’s coordinator in context     run individually by KOSGEB,
                    of SME Week run by the EU with     -Brings 24 actors together for a
                              37 countries             common goal (public, university,
                                                                      NGOs)
www.kosgeb.gov.tr
CO-OPERATION FIELDS
         OTHER                                                -Running joint projects
        SERVICES
                           CO-OPERATION                  -Taking part in working groups
                            ACTIVITIES IN                 -Setting up KOSGEB Business-
                           FAVOR OF SMEs               Matching Centers with counterparts
                                                       -Forming and signing Collaboration
                                                                    Protocols


                             PRACTICALLY
                                                                     ACTORS
                    -Information&Experience sharing       -International, regional and
                       -Mutual use of data bases        national field bodies (i.e., OECD,
                     -Organization of joint training   Black Sea Economic Organization,
                               Sessions                     Chambers, Universities)
                     -Organization of seminars and         -Counterparts from target
                             conferences                            countries
www.kosgeb.gov.tr
PURPOSE:                Under a protocol which signed with
         OTHER      -Improve international relations   KOSGEB’s counterpart organization
        SERVICES           between SMEs                      -Sharing of information
                      -Elimination of administrative   -Identification of potential partners
                                burdens                  -Support of organizational issues
                         -development of strong             -Support of local legistation
                      relationship through a formal              -Feasibility studies
                                platform




                    There are two Matching Center in                MATCHING
                        Germany. (Köln, Münih)                       CENTER




www.kosgeb.gov.tr
AIM:
         OTHER                                      -Raising awareness amongst SMEs
        SERVICES                                    on energy efficiency, environment,
                              KOSGEB                  -Increasing the capacity to
                             PROJECTS               empower institutional and public
                                                       incentive infrasturucture,
                                                     -Helping to develop a market in
                                                               above areas


                     -Exchanging knowledge and
                             experience,
                    -Providing technical support,      -KOSGEB PROJECT FOR
                                                     ENVIRONMENT ROAD MAP
                              -Training,
                      -Demo/Pilot projects, and       -KOSGEB PROJECT FOR
                             aplications,           ENERGY EFFICIENCY PROJECT
                          -Analysis&Reports
                                                             IN SMEs
www.kosgeb.gov.tr
OTHER                                          -EU MEDA PROJECTS (Completed)
        SERVICES               KOSGEB                   -PRIVATIZATION SOCIAL SUPPORT
                                                             PROJECT (Completed)
                           INTERNATIONAL
                              PROJECTS                  -PROJECTS UNDER THE EU 6TH FP
                                                                 (Completed)
                                                        -STRENGHTENING ECONOMY IN
                                                         ANATOLIA PROJECT (Ongoing)


                    -Exchanging knowledge, expert,
                    -Trainings for public experts and
                             entrepreneurs,                         -EU
                      -Recovery of job losses after
                              privatization,                  -WORLD BANK
                        -Labs specified to Quality          -GIZ OF GERMANY
                    Assurance (textile, shoemaking)
www.kosgeb.gov.tr
BRIEFLY
                                  1 BILLION $
                                    KOSGEB
                                    SUPPORT


                    7.6 BILLION
                      CREDIT             280.000
                     VOLUME                SMEs



                      -50.000 EMPLOYEE
                         -3 BILLION $
                      EXPORT VOLUME


www.kosgeb.gov.tr
THANK YOU


                                www.kosgeb.gov.tr




www.kosgeb.gov.tr

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SMEs & KOSGEB Guide to Support Turkish Small Businesses

  • 1. SMEs & KOSGEB Small and Medium Enterprises Development Organisation ANKARA, 2012 www.kosgeb.gov.tr
  • 2. CONTENTS GENERAL INFORMATION ABOUT TURKEY SME CONCEPT Their Role in Economy, SME Policies, Their Strengths SMEs IN TURKEY SME Policies, Institutional Structure, Problems KOSGEB Function, Administrative Structure, Supports and Activities www.kosgeb.gov.tr
  • 3. REPUBLIC OF TURKEY  783.562 m2 area,  74.7 million population (TUİK 2011),  Young population; average age: 29.7 (TUİK 2011),  76% population live in urban areas, 24% in rural areas,  World’s 17th; Europe’s 6th largest economy (IMF, 2011),  According to 2011 growth rates, second in the World. www.kosgeb.gov.tr
  • 4. MAIN ECONOMIC INDICATORS TEMEL EKONOMİK VERİLER 2008 2009 2010 2011 GNP (000 000 $) 742.094 616.703 734.929 766.400 GNP per capita($) 10.438 8.559 10.067 10.363 Export (billion $) 132 102 113 134 Import (billion $) 201 140 185 240 Unemployment 11 14 11,9 10,5 Infation 10,1 6,5 6,4 7,8 Growth 0,7 4,8 8,9 8,5 Share of R&D Expenditure in GNP 0,73 0,85 0,84 www.kosgeb.gov.tr
  • 5. WHAT IS  SME :Small & Medium Enterprises SME? (EU, World Bank, UN)  SMB: Small & Medium Business (ABD) SME DEFINITIONS  Different thresholds are applied for maximum number of employees in different countries: -In Japan 250, -In the USA 500, -In Turkey 150 (until 2006, according to KOSGEB)  In some countries SMEs are defined by only financial thresholds; -In Brazil enterprises whose annual income is less than Brazil Real of 90 www.kosgeb.gov.tr million.
  • 6. WHAT IS EUROPEAN UNION SME DEFINITION SME?  The most widespread definion in international area: EU SME Definition  It is used for monitoring the rules for Competition Policy, however every country is free in their national legislation. (Financial threshold is regarded for public aids. ) Number of Annual Annual Balance of Category Employees Revenue Payments Medium < 250 ≤ € 50 million ≤ € 43 million or Small < 50 ≤ € 10 million ≤ € 10 million Micro < 10 ≤ € 2 million ≤ € 2 million www.kosgeb.gov.tr
  • 7. THEIR ROLE IN ECONOMY  Backbone of Economy; -99.8% of enterprises in EU (EUROSTAT) -90% of enterprises in developing countries (Peter Pang, BIS)  Their most remarkable characteristic is creation of employment; - In the USA 47 % of employment (OECD) - In China 50 % of employment (Peter Pang, BIS) - In EU countries 77 % of employment (EUROSTAT) - In Brazil 62 % of employment (IBGE) www.kosgeb.gov.tr
  • 8. THEIR ROLE IN ECONOMY  Major source of Value Added in Economies; - In EU Countries 58% of total value added (EUROSTAT), -In Japan 53% of total value added (Japan Ministry of Internal Affairs), - In South Korea 51% of total value added (OECD)  High investment potential; - In Japan 40% of total investment - In the USA 43% of total investment www.kosgeb.gov.tr
  • 9. STRENGTHS  Flexibility in decision making mechanisms,  Enthusiasm of managers for growth and entrepreneurship,  Eagerness for innovation,  Faster adaptation to changes in market and technology, compared to large enterprises,  Better knowledge of local markets due to physical closeness to customers,  Specialisation in products, increasing product diversification,  Resistance to economic fluctuations due to high share of owner’s equity www.kosgeb.gov.tr
  • 10. SME POLICIES  Between 1945-1970: IN THE WORLD -Policies directed to large enterprises to eliminate the effects of 2nd World War and ensure capital accumulation.  Importance of SMEs are realised by policy makers after economic problems such as Oil Crisis of 70s and unemployment in 80s. Because, -SMEs are less affected by problems compared to large enterprises. -They make important contribution to business and employment creation.  Not only Western but also developed Far Eastern Countries (Taiwan, South Korea), owe their industrial development of today to their dynamic, SME oriented industries.  Globalisation: -Modern SME Policies: Entrepreneurship, innovation, environment, energy, -European Union SME Policies www.kosgeb.gov.tr
  • 11. SME POLICIES IN EU SME POLICIES Objectives: IN THE WORLD Drawing attention to SMEs potential in entrepreneurship and employment creation, Establishing entrepreneurship culture, Improving business environment (technical and administrative,) Providing new financial sources, Encouraging innovation and R&D activities, Increasing awareness and capabilities in environment and energy, SME Definition: 1996 and 2003, Europe Small Enterpirises Charter: 2000 (Principles), EU Small Business Act: 2008 (Principles and Applications), Community Programs: CIP, 7FP (Applications and Financial Support) www.kosgeb.gov.tr
  • 12. SMEs IN Ministry of Science, Industry and Technology TURKEY Regulation in Definition, Qualifications and Classification of Small and Medium Sized Enterprises Small and Medium Sized Enterprise (SME): Enterprises which employ less than 250 employees, and whose annual net sales revenue or financial balance of payments do not exceed 25 million TL and classified as micro enterprise, small enterprise or medium scaled enterprise according to this Regulation www.kosgeb.gov.tr
  • 13. SMEs IN SME DEFINITION IN TURKEY TURKEY has been harmonised with EU definition in 2006. Number of Annual Balance or Category Employees Annual Revenue of Payments ≤ 1 million TL ≤ 1 million TL Micro 1-9 ($ ($ 570.000) TL ≤ 5 million 570.000) TL ≤ 5 million Small 10-49 ($ 2.9 ($ 2.9 milyon) million) ≤ 25 million TL ≤ 25 million TL Medium 50-249 ($ 14.3 ($ 14.3 million) milyon) 1TL=$1,75 (2012) www.kosgeb.gov.tr
  • 14. SMEs in TURKEY DISTRIBUTION OF TURKISH ENTERPRISES ON SCALE BASIS (TUIK 2008) www.kosgeb.gov.tr
  • 15. SMEs in SECTORAL DISTRIBUTION OF ENTERPRISES TURKEY (TUIK 2008) www.kosgeb.gov.tr
  • 16. IMPORTANCE of SMEs in SMEs in TURKISH ECONOMY TURKEY Number of SMEs 2.580.075 99.9 % Number of Persons 7.865.403 78 % Employed Generated Added 150 billion TL 55 % Value Investment 51 billion TL 50 % Amount Achieved by SMEs 55 % of TOTAL EXPORTS (TUIK 2008) www.kosgeb.gov.tr
  • 17. DEVELOPMENT STAGE Before 1950’s: SME POLICIES in TURKEY -SMEs were very small and established with inadequate working capital , -Working with family members or craftsmanship 1960’s: Growing trade activities as a result of the rise in the welfare of EEC countries, 1963: Five-Year Development Plan; approaching ‘small industries’ 1980’s: General re-organization of economy in Turkey, liberalization , globalization 1990: Establishment of KOSGEB 1996: Customs Union -Experiencing the international competitiveness, -Concentration of public measures 2000 and beyond: EU effect www.kosgeb.gov.tr
  • 18. SME STRATEGY AND ACTION PLAN (2011-2013) POLICY 9.MULTI ANNUAL DEVELOPMENT PROGRAMME KOSGEB STRATEGIC PLAN MAKING (2007-2013)  Sinceto National Papers and institutional mission; Parallel 2003  Produced along with EU accession Objective 1 : Developing managerial and institutional Essential document guidelining transitions on  Develops business environment sensitive to needs of SMEs skills of SMEs economic, cultural and social issues.  Main 2 : Increasing R&D and innovation driven Includes; strategy areas; Objective -Mid-Term Programme (2010-2012) SMEs transfer them -Supporting entrepreneurship that activities of SMEs, and ensuring into new investments, -Annual Programme (2012) institutional skills of SMEs -Developing managerial and Objective 3 : Disseminating entrepreneurship culture to -Paying attention to SMEs while developing business environment help set new firms -Enhancing R&D and innovation capacity of SMEs Objective 4 : Providing development of the organization -Helpingqualitative service to offer SMEs to easier access to financial sources www.kosgeb.gov.tr
  • 19. ORGANIZATIONAL STRUCTURE www.kosgeb.gov.tr
  • 20. INSTITUTIONAL INSTITUTIONS ACTIVITIES STRUCTURE NON-GOVERMENTAL ORGANIZATIONS UNION OF CHAMBERS AND Representing the private sector, providing the COMMODITY EXCHANGES OF solidarity and the association between the TURKEY Chambers and the Commodity Exchanges Coordination and representation of craftsmen CONFEDERATION OF TURKISH and artisans, vocational assessment of the TRADESMEN AND CRAFTSMEN members, providing vocational trainings TECHNOLOGY DEVELOPMENT Supporting technology development projects FOUNDATION OF TURKEY SMALL AND MEDIUM SIZED ENTERPRISES SELF EMPLOYED Declaring opinions related to the SMEs, in PERSONS AND MANAGERS varied working environment FOUNDATION OF TURKEY www.kosgeb.gov.tr
  • 21. PROBLEMS OF TURKISH SMEs ? Finance and guarantee problems, ? Lack of qualified human resources, ? Inadequacy of capital formations for know-how and technology investments, ? Being open to the innovation but being reluctant to implement asserting the high costs, ? Lack in marketing skills, ? Not making feasibility works or business plans even if they have the entrepreneurial spirit, ? Having a limited knowledge and awareness in topics such as Industrial Property Rights, quality and environmental protection www.kosgeb.gov.tr
  • 22. KOSGEB SMALL AND MEDIUM ENTERPRISES DEVELOPMENT ORGANIZATION Established in 1990, Focusing only on SMEs, the unique public institution -Providing services parallel to the economy policies of the country, Sectors to be supported are identified by the decisions of the Council of Ministers, Every enterprise defined as SME is in its target beneficiary: -A total of 2.580.070 enterprises (2008 TUİK) www.kosgeb.gov.tr
  • 23. VISION OF KOSGEB To be a model organization in the world, which is effective in determining SME and entrepreneurship policies, which encourages the SMEs to undertake an important role in global market  Takes the National Development Plan into consideration: -Prioritized sectors,  Takes the socio-economic roles of SMEs into consideration: -Supporting mechanisms developed according to the geographic and inter-regional differences, -Improving the job creation and employment capacities. www.kosgeb.gov.tr
  • 24. VISION OF KOSGEB KOSGEB Takes the necessities of globalization and the competitiveness into consideration, which are: -Increasing the exporting capacities of SMEs, -Providing access to the valuable information and the networks, -Internationalization of SMEs, -Increasing the innovation levels. Takes the modern SME policies in to consideration: -Strong cooperation with the international institutions, -Renovated supporting mechanisms based on the projects. www.kosgeb.gov.tr
  • 25. -Meeting annually KOSGEB -Setting out principles of annual ADMINISTRATIVE work plans in accordance with the STRUCTURE Development Plan and Programs GENERAL ASSEMBLY Taking decisions about the budget and implementation in accordance with the principles set out in the EXECUTIVE General Assembly COMITEE OFFICE OF PRESIDENCY –THE PRESIDENT- MONITORING, UNITS DEVELOPING MODELS AND POLICY EVALUATION AND SERVICE CENTERS COORDINATION UNITS www.kosgeb.gov.tr
  • 26. UNITS -ENTERPRENEURSHIP DIVISION DEVELOPING - REGIONAL AND LOCAL DEVELOPMENT DIVISION MODELS AND -SME MARKET RESEARCH AND EXPORT PROTMOTION POLICY DIVISION -SME TRAINING AND CONSULTANCY DIVISION -SME FINANCE RESEARCH DIVISION -PROJECT COORDINATION DIVISION -TECHNOLOGY AND INNOVATION SUPPORTS DEPARTMENT -Designing regional and local development models -Continuous improvement of KOSGEB Support Models -Developing new financial instruments -Providing solutions to the training and consultancy needs of enterprises -Making researches on foreign markets and the legislation -Designing SME-oriented projects or supporting projects developed by the SME -Planning supports and actions focused on Technology and Innovation www.kosgeb.gov.tr
  • 27. SERVICE UNITS -KOSGEB SERVICE CENTERS (75) -TECHNOLOGY DEVELOPMENT CENTERS (28) -R&D INNOVATION COOPERATIONS (45) -TECHNOLOGY INCUBATORS WITHOUT WALL (8) -SYNERGY FOCAL POINTS (77) -Strengthening the relation between industry and public -Provision of KOSGEB support mechanisms -Improving the cooperation between universities and industry STRUCTURES WHICH ARE IN DIRECT CONTACT WITH SMEs. www.kosgeb.gov.tr
  • 28. KOSGEB SUPPORTS and SERVICES WHO CAN BENEFIT FROM KOSGEB SERVICES? Any SME which was established in Turkey and registered in KOSGEB Data Base, -Web-based system; www.kosgeb.gov.tr -FOR REGISTRATION; Filling SME Information Form, Selection of Service Center 635.000 registered SMEs in KOSGEB Data Base www.kosgeb.gov.tr
  • 29. SECTORAL DISTRIBUTION OF KOSGEB FIRMS IN KOSGEB DATA BASE SUPPORT&SERVICES www.kosgeb.gov.tr
  • 30. KOSGEB SUPPORTS and SERVICES MAIN OTHER OBJECTIVES SUPPORT SME CREDIT MECHANISMS SERVICES MECHANISMS -Competitive SMEs -Alternative -Cooperation finance model activities for -Project the benefit of -Business and Oriented -Contribution to National SMEs Employment -For the needs SME Finance -Activities and problems System under EU -Models of SMEs membership -Easy access Parallel to to sources for process Economic SMEs -Projects Policies -Laboratory Services www.kosgeb.gov.tr
  • 31. SUPPORT -Manufacturing, MECHANISMS -Management Organization, SME PROJECT -Marketing, SUPPORT -Foreign Trade, PROGRAMME -Human Resources, -Financial and fiscal affairs, -Information Management -Promoting projects developed in order to attain flexible solutions to enterprise specific problems, Project costs to be supported are decided by KOSGEB Evaluation -Establishment of project culture and Decision Board. and consciousness at SMEs, -Improving project making capacity of SMEs www.kosgeb.gov.tr
  • 32. SUPPORT MECHANISMS Thematic Programme Based on THEMATIC Call: KOSGEB determines the area PROJECT for call itself. SUPPORT Professional Organization Project PROGRAMME Support Programme: The owner of the project idea determines the area. -Aiming the thematic areas at macro strategy documents, MAIN OBJECTIVE: -Taking into account regional and Ensure compliance of SMEs with sectoral needs, national and international legislation and the priorities - Promoting professional organizations for developing projects for the benefit of SMEs www.kosgeb.gov.tr
  • 33. SUPPORT MECHANISMS MAIN COOPERATION AREAS: COOPERATION -Supply, marketing, COLLABORATION SUPPORT -Low capacity utilization, PROGRAMME -Weak competitiveness power, -Finance - At least 5 business come together to enhance their capacity and competitiveness, “Common solutions for - Benefiting from economies of common problems” scale to provide resource- conserving, -Developing cooperation culture www.kosgeb.gov.tr
  • 34. SUPPORT MAIN SUPPORT ITEMS MECHANISMS R&D, INNOVATION -Machinery, equipment, AND INDUSTRIAL hardware, raw material, IMPLEMENTATION -Softare and services SUPPORT PROGRAMME -Staff, -Technopark rent, Industrial and Intellectual Property Rights -Developing SMEs and entrepreneurs possessing new - R&D Innovation Programme ideas and inventions based on -Industrial Implementation science and technology, Programme -Supporting innovation activities, -Commercializing results of R&D and Innovation Projects www.kosgeb.gov.tr
  • 35. SUPPORT 3 SUB PROGRAMMES: MECHANISMS - Applied Entrepreneurship ENTREPRENEURHIP Trainning SUPPORT -New Entrepreneur Support PROGRAMME -Business Incubator (İŞGEM) Support -Supporting entrepreneurship TARGET GROUP: -Establishing successful and -General groups sustainable businesses, -Young people -Disseminating entrepreneurship -Women culture, -Disadvantaged groups -Promoting entrepreneurship based on local dynamics www.kosgeb.gov.tr
  • 36. SUPPORT ON; MECHANISMS Domestic Fairs, Foreign Business Travel, Promotion, Matching, GENERAL Qualified Personnel, Training and SUPPORT Consultancy, Energy Efficiency, PROGRAMME Design,Certification, General Test-Analysis, CE Marking - Enabling SMEs to produce high quality and efficient goods/services, Target Group: - Encouraging the general -SMEs having low capacity of enterprise development activities developing progect of the SMEs, -SMEs in sectors just included to - Promoting marketing activities of KOSGEB target group SMEs in order to expand their domestic and international market shares www.kosgeb.gov.tr
  • 37. SUPPORT GOING-PUBLIC PROCESS MECHANISMS EMERGING -Ensuring being processed in the ENTERPRISES Istanbul Stock Exchange Market MARKET SME (IMKB) Emerging Enterprises SUPPORT Market, PROGRAMME -Providing opportunity to procure funds from capital markets - Market counselor consultancy fee, commission to intermediary fee, -Independent auditing service fee, For the SMEs having -Capital Market Board(SPK) development and growth registration fee, potential - Istanbul Stock Exchange (IMKB) Market Emerging Enterprises Market List acceptance fee www.kosgeb.gov.tr
  • 38. SPECIAL PURPOSE CREDITS KOSGEB CREDIT AND FINANCE MAIN OBJECTIVE: -Employment Credit MECHANISMS -Export Credit Find traditional and alternative solutions to the financial needs of -Machinery-Equipment Credit SMEs in -Emergency Credit -Operational Capital Credit PROCESS KOSGEB PROVIDES ALTERNATIVE -Low interest rate FINANCE SOLUTIONS FOR SMEs; -Covers all the interest or a large -Credit Guarantee Fund is established proportion within the partnership of KOSGEB, -Possibility of long-term TOBB, 20 public and private Banks. repayment KOSGEB is partner of KOBI AS, serving -KOSGEB credit guarantee for venture capital and IVCI (Istanbul Venture Capital Initiative). main capital www.kosgeb.gov.tr
  • 39. BUDGET KOSGEB BUDGET NUMBERS NUMBERS KOSGEB BUDGET (2012) 253 MILLION $ REALIZED AMOUNT AS KOSGEB SUPPORT 168 MILLION $ (2011) REALIZED SUPPORT RATIO IN OVERALL BUDGET %69 (2011) NUMBER OF APPLICANT SMEs (2010) 12.967 NUMBER OF APPLICANT SMEs (2011) 30.000 1$=1,75 TL www.kosgeb.gov.tr
  • 40. Number of Number of Realized Number of SUPPORT PROGRAM Approved Projects Support Aplicants SUPPORTS IN (1$=1,75 TL) Projects Granted Amount NUMBERS SME Project Support (2010-2011) Programme 2,079 1,427 399 8.2 Million $ Thematic Project Support 59 23 3 43.3 Million $ Programme Cooperation&Collaboration 116 90 42 5.6 Million $ Support Programme R&D, Innovation and Industrial Practice Support 2,328 1,126 1,569 23.1 Million $ Programme Entrepreneurship Support 3,45 2,716 4,133 11.8 Million $ Programme General Support Programme 34,881 - 18,879 36 Million $ Developing Enterprises Market SME Support 5 1 0 0 Programme OVERALL 42,918 5,383 25,025 85 Million $ www.kosgeb.gov.tr
  • 41. KOSGEB TECHNOLOGY SUPPORTS KOSGEB TECHNOLOGY AND INNOVATION NUMBER OF APPLICANTS SUPPORTS (MILLION $) 4,082 NUMBER SUPPORTED NEW1.7 2003 NUMBER OFOF SUPPORTED PROJECT 2255 881 ENTREPRENEURS 2004 7.3 COMPLETED PROJECTS CONTRIBUTION TO EMPLOYMENT 1,212 15257 NUMBER OF COLLECTED 2005 4.6 PATENT/UTILITY RATIO BY SUPPORTED 55% COMPLETION MODEL 312 FIRMS 2006 2.1 NUMBER OF SMEs MOVED TO 114 TECHNOPARKS AFTERPROJECTSFACILITY 881 COMMERCIALIZED KOSGEB 1.7 2007 COMMERCIALIZATION RATIO SALE VOLUME OF SUPPORTED 2.6 2008 FIRMS 73%494 Million $ EXPORT VOLUME OFOF WORKSHOPS 195 ACTUAL NUMBER SUPPORTED FIRMS 97.5 Million $ 2009 2.5 RATIO OF WORKSHOP FULLNESS 72,31% Numbers belong to 1992-20123.7 2010 term Numbers belong to 1992-2012 1$=1,75 TL 2011 11.2 www.kosgeb.gov.tr term
  • 42. KOSGEB ENTREPRENEURSHIP SUPPORT 2010 2011 Number of 2010 Number of Number of KOSGEB NEW ENTREPRENEUR Number of 2011 Support İŞGEM* workshops Current SUPPORT ($) PRACTICAL ENTREPRENEUR workshops 530.455 80.347.726 Programme for actually occupied Employment NUMBER OF SUPPORTED TRAINING 309 1389 Developing ENTREPRENEURS 134 3147 Women OF PARTICIPANTS NUMBER 11.534 47.480 Entrepreneuship 3 73 42 72 As of December, 2011 (*İŞGEM: Business Development Center) www.kosgeb.gov.tr
  • 43. Amount of KOSGEB CREDIT SUPPORT Contribution Credit Interest MECHANISMS Number of to Volume covered by Beneficiary Employment Assigned to KOSGEB Firm (Staff firms (Million $) headcount) THEME OF CREDIT INSTRUMENT (Million $) SME SUPPORT CREDITS SME EXPORT SUPPORT CREDITS SME EMPLOYMENT SUPPORT CREDITS MACHINERY&EQUIPMENT SUPPORT CREDITS FOR FOOD INDUSTRY TRANSFER TO OIZ SUPPORT CREDITS 204.781 6.4 0.56 32.623 FOR LEATHER SECTOR INFORMATICS SUPPORT CREDITS SME MACHINERY&EQUIPMENT SUPPORT CREDITS MANUFACTURER ARTISANS SUPPORT CREDITS www.kosgeb.gov.tr
  • 44. SECTORAL DISTRIBUTION OF KOSGEB SUPPORTS www.kosgeb.gov.tr
  • 45. DISTRIBUTION OF SUPPORTED FIRMS ON SCALE BASIS www.kosgeb.gov.tr
  • 46. PROJECT FOR IMPLEMENTATION OTHER SERVICES OF SMALL BUSINESS ACT IN BALKAN COUNTRIES AND EU ORIENTED TURKEY KOSGEB ACTIVITIES -Pictures actual situation of the country in scope of the Act, -Puts efforts on building suitable environment to SMEs with field actors ENTERPRISE EUROPE NETWORK -National Coordinator EUROPEAN SME WEEK -Manages 7 consortia of which 5 are Turkey’s coordinator in context run individually by KOSGEB, of SME Week run by the EU with -Brings 24 actors together for a 37 countries common goal (public, university, NGOs) www.kosgeb.gov.tr
  • 47. CO-OPERATION FIELDS OTHER -Running joint projects SERVICES CO-OPERATION -Taking part in working groups ACTIVITIES IN -Setting up KOSGEB Business- FAVOR OF SMEs Matching Centers with counterparts -Forming and signing Collaboration Protocols PRACTICALLY ACTORS -Information&Experience sharing -International, regional and -Mutual use of data bases national field bodies (i.e., OECD, -Organization of joint training Black Sea Economic Organization, Sessions Chambers, Universities) -Organization of seminars and -Counterparts from target conferences countries www.kosgeb.gov.tr
  • 48. PURPOSE: Under a protocol which signed with OTHER -Improve international relations KOSGEB’s counterpart organization SERVICES between SMEs -Sharing of information -Elimination of administrative -Identification of potential partners burdens -Support of organizational issues -development of strong -Support of local legistation relationship through a formal -Feasibility studies platform There are two Matching Center in MATCHING Germany. (Köln, Münih) CENTER www.kosgeb.gov.tr
  • 49. AIM: OTHER -Raising awareness amongst SMEs SERVICES on energy efficiency, environment, KOSGEB -Increasing the capacity to PROJECTS empower institutional and public incentive infrasturucture, -Helping to develop a market in above areas -Exchanging knowledge and experience, -Providing technical support, -KOSGEB PROJECT FOR ENVIRONMENT ROAD MAP -Training, -Demo/Pilot projects, and -KOSGEB PROJECT FOR aplications, ENERGY EFFICIENCY PROJECT -Analysis&Reports IN SMEs www.kosgeb.gov.tr
  • 50. OTHER -EU MEDA PROJECTS (Completed) SERVICES KOSGEB -PRIVATIZATION SOCIAL SUPPORT PROJECT (Completed) INTERNATIONAL PROJECTS -PROJECTS UNDER THE EU 6TH FP (Completed) -STRENGHTENING ECONOMY IN ANATOLIA PROJECT (Ongoing) -Exchanging knowledge, expert, -Trainings for public experts and entrepreneurs, -EU -Recovery of job losses after privatization, -WORLD BANK -Labs specified to Quality -GIZ OF GERMANY Assurance (textile, shoemaking) www.kosgeb.gov.tr
  • 51. BRIEFLY 1 BILLION $ KOSGEB SUPPORT 7.6 BILLION CREDIT 280.000 VOLUME SMEs -50.000 EMPLOYEE -3 BILLION $ EXPORT VOLUME www.kosgeb.gov.tr
  • 52. THANK YOU www.kosgeb.gov.tr www.kosgeb.gov.tr