What is SME? Definition, Classes, and Supports of SMEs in Turkey

Last Update: February 3, 2026

SME, or Small and Medium Enterprises, is one of the cornerstones of the Turkish economy. It plays a vital role in creating employment, supporting economic growth, and ensuring local development. In this guide, while providing a comprehensive answer to the question 'what is SME?', we will also cover critical topics such as SME classification, KOSGEB supports, SME loans, and application processes.

What is SME?

SME refers to enterprises that fall below certain thresholds of number of employees and annual net sales revenue or financial balance sheet size. In Turkey, SMEs constitute the backbone of the economy in the production, service, and trade sectors. SME status provides significant advantages to businesses in accessing opportunities like grants, incentives, and suitable financing.

Especially for businesses aiming for growth, SME status is a strategic leverage. Choosing the right support program is critically important for sustainable growth and competitive advantage.

What is the Definition of SME?

The definition of SME in Turkey is generally made according to two main criteria: annual number of employees and annual net sales revenue or financial balance sheet size. This standard framework allows classification of businesses into micro, small, or medium-sized categories.

The definition of SME is important for directing support programs to the right target audience, credit processes, and planning incentives. In many application processes, the business is required to document its SME eligibility.

SME Classes in Turkey (Micro - Small - Medium)

The commonly used SME classes in Turkey are as follows. Since criteria can be updated over time, it is recommended to verify the current conditions from official sources before application.

• Micro Enterprises: Businesses with fewer than 10 employees and annual net sales revenue or financial balance sheet not exceeding 5 million TL.
• Small Enterprises: Businesses with fewer than 50 employees and annual net sales revenue or financial balance sheet not exceeding 50 million TL.
• Medium-sized Enterprises: Businesses with fewer than 250 employees and annual net sales revenue or financial balance sheet not exceeding 250 million TL.

What is the SME Declaration?

The SME declaration is one of the processes that helps document the SME status by declaring information on the number of employees and financial size. In many applications for support and incentives, it is required for the declaration to be current to demonstrate the business's compliance with SME criteria.

In declaration processes, incorrect or incomplete information may cause delays in applications or issues in eligibility assessment. Therefore, it is crucial that the data is consistent with accounting records and up-to-date.

The Role of SMEs in the Turkish Economy

SMEs constitute a large portion of businesses in Turkey and have a decisive impact on employment, production, and local development. Their ability to provide flexibility in the supply chain and adapt quickly creates significant advantages in economic fluctuations.

SMEs, which are the locomotive of the economy in many areas from production to export, can also be a critical step in the growth journey of innovative ventures.

What are SME Supports?

SMEs in Turkey can be incentivized with financial and technical supports from various institutions. Support programs can be shaped in areas such as entrepreneurship, digital transformation, capacity increase, R&D, export, and marketing.

• KOSGEB Support Programs
• R&D and innovation incentives (may vary by program)
• Export and overseas market supports
• Credit Guarantee Fund (KGF) backed financing and similar mechanisms
• Local/