A Guide to Government Support Programs for SMEs in Türkiye

SMEs in Türkiye can benefit from a wide range of support programs run by public institutions. Programs offered by bodies such as KOSGEB, TÜBİTAK, TKDK and the regional development agencies give businesses access to grants, tax reductions, interest support and technical consulting. The breadth of these programs makes it easier for SMEs of different sizes and sectors to find support mechanisms that match their needs.

Türkiye's investment incentive system includes regional incentive schemes that vary according to each province's level of development. This structure provides higher support rates to SMEs investing in less developed or developing regions; corporate tax reductions, social security (SGK) employer premium support and land allocation are among the main tools offered under regional incentives. The regional incentive class of the province where the investment is made directly determines the support rate that applies.

Sector diversity is an important feature of SME support. Dedicated programs exist in many areas, from manufacturing to agriculture and food processing, and from information technology to healthcare. Software and R&D companies operating in Technology Development Zones (Teknokent) can also benefit from additional advantages such as corporate tax exemption and income tax support for personnel.

For R&D and innovation projects, TÜBİTAK's grant programs stand out because they provide non-repayable support. KOSGEB's digital transformation and capacity development programs, meanwhile, provide a broad support framework for SMEs looking to invest in technology. Because different programs complement one another, the same project can receive support from more than one source — which can significantly reduce an SME's investment costs.

KOSGEB (Small and Medium Enterprises Development Organization of Türkiye) is the institution offering the most comprehensive support framework for SMEs in Türkiye. To benefit from KOSGEB support, a company must meet the SME definition: businesses that employ fewer than 250 people annually and whose annual net sales revenue or balance sheet total stays below the specified thresholds are considered SMEs. Current threshold values are published on KOSGEB's official website.

KOSGEB's main support programs include:

• Entrepreneur Support Program: Aimed at newly established or soon-to-be-established businesses, this program covers part of the costs incurred when starting a business. It offers start-up support, operating expense support and additional performance-based support. Completing an entrepreneurship training course is one of the key prerequisites for applying.
• SME Capacity Development Program: Designed to strengthen the competitiveness of existing businesses, this program supports cost items such as machinery and equipment, software, certification, industrial property, testing and analysis, and training. The business must be registered and active in the KOSGEB database.
• Digital Transformation Support: Aimed at raising the digital maturity of SMEs — particularly in manufacturing — this support covers investments such as software licenses, cloud computing services, automation systems, ERP and CRM. Creating a digitalization roadmap is also part of the program.

Current support limits, application periods and program conditions are updated periodically. The most accurate information is available on KOSGEB's official website. KOSGEB's provincial directorates across Türkiye provide on-site support with pre-application assessments and information.

TÜBİTAK (Scientific and Technological Research Council of Türkiye) is one of the country's leading institutions providing grant-based (non-repayable) support for the R&D and innovation projects of industrial companies. Two programs are particularly important for SMEs:

• 1507 SME R&D Start-Up Support Program: This program provides grant support for R&D projects of SME-scale companies and is designed for firms that have not received TÜBİTAK support before or have run only a limited number of projects. Projects aimed at developing products, processes or services can apply. Project personnel, materials, consulting, travel and equipment costs are covered. The program encourages SMEs to build an R&D culture and start innovative activities.
• 1501 Industrial R&D Support Program: Aimed at more extensive R&D projects, this program is open to both SMEs and large companies. Projects are expected to involve technological innovation or improvement, have the potential to create commercial value and be carried out using a systematic R&D approach. Project budgets and durations can be larger than under 1507.

In both programs, the support is a grant, meaning there is no repayment obligation. Eligible cost items include personnel, travel, equipment, materials and consumables, software, consulting and service procurement. Support rates and ceilings vary by program and current call period; details should be checked on the official TÜBİTAK TEYDEB (Technology and Innovation Funding Programs Directorate) website.

For more information, see our TÜBİTAK 1507 Application Guide. It covers the application steps, required documents and proposal-writing tips in detail.

Universities and technoparks across Türkiye are a valuable resource for strengthening project teams and reinforcing a project's technical foundation in TÜBİTAK evaluations.

TKDK (Agriculture and Rural Development Support Institution) is the body responsible for managing the European Union's IPARD (Instrument for Pre-accession Assistance – Rural Development) funds in Türkiye. The IPARD program provides grant contributions to investments in the agriculture and food sectors to support rural development.

The main investment areas supported under IPARD are:

• Milk and dairy processing: Establishing or modernizing milk collection, processing and packaging facilities.
• Meat and meat product processing: Investments in slaughterhouses, cutting and processing facilities.
• Fruit and vegetable processing: Drying, freezing, canning and juice production facilities.
• Aquaculture: Fish farms and processing facilities.
• Diversification of farm activities: Rural tourism, handicrafts and local product processing.

Türkiye's agricultural production capacity and diversity make the IPARD program attractive to companies in many different regions. For projects that add value in agriculture, follow TKDK's official announcements for current call conditions and regional priorities.

IPARD applications open in call periods. For each call period, TKDK separately announces which measures and sectors will be supported, as well as the support rates and ceilings. Current calls and application conditions should be tracked on TKDK's official website.

Applicants are expected to have financial statements for the last three years, a title deed or lease agreement, environmental compliance documents and a technical project file. Preparing a complete application file that fits the program plays a critical role in the evaluation process.

An investment incentive certificate is an official document that allows investors in Türkiye to use the support and exemptions the government provides for investments of a certain size and type. Issued by the Ministry of Industry and Technology, the certificate offers investors a range of tax and financial advantages.

Türkiye's investment incentive system consists of four main categories:

• General incentive scheme: Basic support applied to all investments that meet the minimum investment amount.
• Regional incentive scheme: Schemes that vary according to provinces' levels of development and provide higher support rates to less developed regions.
• Strategic investment incentives: Special support for investments with the potential to reduce the current account deficit and lower import dependency.
• Project-based investment incentives: Comprehensive support packages for large-scale projects specifically designated under the economic transformation program.

The main tools available under an investment incentive certificate are:

• Corporate tax reduction: A tax reduction is applied through an investment contribution rate linked to the investment amount.
• SGK employer premium support: The government covers the employer's share of social security (SGK) premiums during the investment period and for a set period afterward.
• VAT exemption: VAT exemption on domestic or imported machinery and equipment purchased under the investment incentive certificate.
• Customs duty exemption: No customs duty on imported machinery and equipment.
• Interest or profit-share support: The government covers part of the interest expense on investment loans.

Support rates vary depending on the regional classification, the investment subject and the investment amount. Current rates and conditions should be checked on the website of the Ministry of Industry and Technology's General Directorate of Incentive Implementation and Foreign Investment.

Türkiye has 26 regional development agencies, each running financial and technical support programs to contribute to the economic and social development of the provinces in its region. The agencies operate under the coordination of the Ministry of Development and set their priorities in line with regional development plans.

Financial support programs consist of project-based grants. Each agency opens thematic calls targeting the priority areas of its region. These calls typically focus on the following areas:

• Increasing competitiveness in manufacturing
• Value-adding projects in agriculture and food
• Developing tourism infrastructure
• Renewable energy and energy efficiency
• Social development and employment-focused projects
• Digitalization and technology transfer

Financial support programs require project owners to provide co-financing. Support rates and ceilings are set for each call period and explained in detail in each call's guidelines.

Technical support programs cover short-term consulting and training services designed to strengthen the institutional capacity of organizations in the region. Under technical support, expert assistance is available on topics such as strategic planning, project cycle management, quality management systems, marketing strategy and export consulting.

SMEs, cooperatives, non-governmental organizations, universities and public institutions can apply for development agency support. Current calls, application timelines and supported priority areas are announced on each agency's official website. Application preparation should start with a careful reading of the call guidelines.

The key steps for SMEs looking to benefit from government support are summarized below. Although the application process varies by program, the general framework is largely the same:

• 1. Assess your eligibility: Identify which support programs your company qualifies for based on its sector, size, financial structure and project idea. You can apply to more than one program at the same time; however, you cannot receive duplicate support for the same cost item.
• 2. Clarify your project idea: Define the scope, objectives and expected outputs of the investment or R&D activity you want funded. Express the project's innovative aspect, commercialization potential and regional contribution with concrete data.
• 3. Prepare the required documents: The basic documents typically requested in applications include:
  • Company incorporation documents (trade registry gazette, tax certificate, signature circular)
  • Financial statements for the last three years (balance sheet, income statement)
  • Certificates showing no outstanding SGK or tax debt
  • Project proposal form or business plan
  • Technical specifications and quotes/proforma invoices, if applicable
• 4. Build your application file: Upload the project details, budget items and supporting documents through the relevant institution's application portal. Make sure the budget items match the cost categories the program supports.
• 5. Follow up on the process: Actively track the post-application evaluation, revision requests and contract stages. Responding to requests for missing documents or information on time is critical to avoid rejection.

Getting professional support in this process saves significant time and cost. Preparing the application file to fit the program, structuring the budget items correctly and developing the technical content in sufficient depth all directly affect the acceptance rate. An experienced consulting team identifies the best program combination for your company and guides you through every stage of the application process.

Learn more about our incentive consulting services and let's identify the best support programs for your company together.