Economic Role and Performance
In Türkiye, enterprises employing fewer than 250 employees and with either annual net sales revenue or total assets not exceeding TRY 500 million are defined as Small and Medium-Sized Enterprises (SMEs). There are approximately 4 million SMEs falling under this definition. As of 2024, SMEs account for 99.6% of all enterprises, contributing 68.5% of total employment and 43.5% of personnel costs. However, their share in turnover (44.1%), production value (39.8%), and value added at factor cost (41.2%) remains comparatively lower. In 2024, SMEs realized USD 76 billion in exports and USD 51 billion in imports, corresponding to 29.6% of total exports and 15.9% of total imports. A total of 3,790 SMEs operating in the manufacturing sector are engaged in high-technology production. SMEs account for 28.8% of total R&D expenditures and 29.7% of patent registrations (615 out of 2,071 patents). Despite their widespread presence in the economic system, this outlook indicates that SMEs face scale-related constraints in value creation and productivity.
Structural Vulnerabilities and Areas of Transformation
While 60% of SMEs established in the 2014–2016 period ceased their activities within five years, 35% of those established in the 2016–2020 period closed within their first two years. Participation of SMEs in innovation activities decreases as firm size becomes smaller; in terms of research and development (R&D) expenditures, they remain behind large enterprises. In addition, it is observed that SMEs’ shares in high-technology and medium-high technology categories in manufacturing industry exports have declined compared to 2013. This situation reveals that the need for structural transformation of SMEs is at a critical level in terms of sustainable growth and competitiveness. For SMEs; increasing productivity, accelerating the transition to high value-added goods and services, developing alternative financing instruments, adapting to digitalization and green production processes, increasing cooperation among stakeholders (other SMEs, large enterprises, and universities), and strengthening resilience capacity are targeted. In this context, expanding the entrepreneurship pool and transforming entrepreneurship education are among the priority areas. It is excpected that supporting techno-entrepreneurship and expanding knowledge- and experience-based consultancy services will come to the forefront. In terms of the role of the public sector within the entrepreneurship ecosystem, it is envisaged to strengthen the guiding role beyond direct financing, increase inter-institutional coordination, and enhance the effectiveness of public supports by identifying and supporting priority SME and entrepreneur groups with high value-added potential in a targeted manner.
Access to Finance and Financial Outlook
As of February 2026, 5.04 million SMEs used TRY 6.6 billion in cash loans, while 4.3 million SMEs used TRY 3.6 billion in non-cash loans. The share of SME loans within cash loans is 20.8%. While the non-performing loan ratio is 2.59% for total loans, this ratio is 4.5% for SME loans. This indicates shows that SMEs have a higher risk profile within the financial system and face structural constraints in accessing finance.
When evaluated in terms of access to finance, it is observed that there has been no significant change in SMEs’ share of total loans at the level of 20.8% since 2012. However, SMEs’ contribution to the economy is higher than the share they receive from loans.
As a matter of fact, SMEs contributed to the economy by generating a USD 25 billion foreign trade surplus in 2024, in addition to widespread employment. This situation indicates a structural mismatch between SMEs’ role in the economic system and their level of access to finance.
Improving access to finance will significantly strengthen the role of SMEs in economic development and the distribution of welfare. Constraints in the current financing structure cause financing providers to use stricter and more data-driven criteria when evaluating firms.
Changing Criteria and Evaluation Approaches
Considering the economic conditions and level of digitalization in 2026, SMEs’ access to finance has gained a more strategic nature beyond traditional banking transactions. In this context, access to finance includes multi-dimensional elements such as financial transparency, data quality, use of digital tools, public supports, and alternative financing methods.
When evaluation criteria of financing providers are examined, it is seen that not only turnover size but also the accuracy and quality of the financial data presented are decisive. In this framework, transparency in financial statements and financial discipline stand out as critical elements. Practices aimed at underreporting profitability increasingly have a negative impact on access to finance.
In credit evaluation processes, it is observed that enterprises that cannot generate operating profit (EBITDA) and have weak equity structures have limited access to finance. However, it is considered that a significant portion of the financial difficulties faced by enterprises arises from liquidity management rather than profitability. For this reason, regular monitoring of liquidity ratios and evaluating the financial health of the enterprise through periodic financial analyses are important. In addition, monitoring key financial ratios, especially debt repayment capacity, stands out as a critical factor in access to finance. In the current environment where access to financial information has accelerated, credit registry systems and credit score indicators should be monitored regularly. In this context, it should be taken into account that negative developments regarding payment performance may directly affect financing opportunities. This situation shows that access to finance has become directly related not only to financial size but also to data quality and management capacity.
Financing Instruments and Support Mechanisms
State supports and incentive programs have an important place in SME financing. In this context, KOSGEB provides various support programs under the headings of Entrepreneurship, Capacity Development, Global Competitiveness, Digital Transformation, and Employment Protection. For SMEs operating in the manufacturing sector, there are financing opportunities reaching up to TRY 50 million, with a 6-month grace period and relatively low cost. In addition, investments carried out within the scope of compliance with the European Green Deal (such as energy efficiency, renewable energy applications, etc.) as well as digitalization projects (such as artificial intelligence integration) are evaluated among the priority areas in terms of access to finance. For exporting SMEs, access to export credits can be provided by reducing collateral requirements through the guarantee of İhracatı Geliştirme A.Ş. (IGE). However, despite the diversity of existing support and incentive mechanisms, it is considered that SMEs’ level of awareness of these opportunities and their effective utilization rates are limited; this is considered to be an area that needs to be improved.
Traditional bank loans are not the only option for SMEs in accessing finance; alternative financing sources, particularly state supports and incentives, also offer significant opportunities. In this context, it is possible to accelerate cash flow by converting receivables arising from commercial activities into financing; since such methods are not recorded as debt on the balance sheet, they do not create additional pressure on credit limits. In addition, preferring financial leasing instead of equity in machinery and equipment investments provides longer maturities and tax advantages. Capital market instruments also constitute an alternative source of financing for SMEs, and it is possible to raise capital through equity-based crowdfunding, particularly for technology-oriented ventures. This structure indicates that access to finance for SMEs requires a multi-dimensional financing strategy rather than being dependent on a single source.
Financial institutions increasingly attach importance to the management structure of the enterprise and its data management capability. In this framework, the level of institutionalization and digitalization are among the determining factors in the risk assessment of SMEs. It is observed that enterprises that can prepare cash flow projections and optimize inventory management through data-driven methods are evaluated in a lower risk group. The ability of company management to analyze financial statements and to develop a common language with financial managers strengthens the element of trust in financing processes. However, eliminating the dependency of business processes and decision mechanisms on individuals; structuring job descriptions, revenue and cost structures, and strategic planning processes and implementing them in a manner specific to the enterprise stand out as fundamental requirements in terms of sustainability.
In this framework, access to finance will be possible not only through the diversity of resources but also through the joint development of financial transparency, data quality, and the level of institutionalization. Accordingly, proper structuring and guidance in SMEs’ access to finance processes have become critical.
“Bosphorus Advisory”, with its local and global experience, serves our entrepreneurs—primarily SMEs—that generate economic value and employment, by establishing a common language to facilitate access to finance. It provides services in many areas such as Financial Check-Up, Restructuring, Financial Matching, Company Valuation, Finding Foreign Funds and/or Partners, Creating Alternative Funding Sources, Institutionalization, and Strategic Planning.
