1 Republic of TURKEY MINISTRY OF INDUSTRY AND TRADE KOSGEB Small and Medium Industries Development Organization

2 DEFINITIONS - Enterprises employing up to 50 workers are SMALL size. - Enterprises employing between 51 and 150 workers are MEDIUM size.

3 SMALL and MEDIUM ENTERPRISES of TURKEY * Constitute % of enterprises in Industry * Employ 56 % of work force * Have a share of 27 % in value added

4 IN WHICH SECTORS are SMEs 26.1 % Metallic Goods 25.6 % Textiles, Wearing Apparels, Leather Products 24.3 % Wood Products and Furniture 12.7 % Foods and Beverages 3.9 % Paper Products 7.4 % Others

5 REGIONAL DISTRIBUTION of SMEs 38 % Marmara Region 17 % Aegean Region 16 % Mid Anatolia 11 % Southern Anatolia 9 % Black Sea Region 6 % Southeastern Anatolia 3 % East Anatolia

6 KOSGEB’s LEGAL STATUS * An affiliate of Ministry of Industry and Trade * Private sector is represented in the Executive Committee as well as high level administrators of relevant government institutions.

7 INCOME * Public sources * Other sources (State Banks, State Enterprises, Chambers and Unions, etc.) * Service fees

8 FIELDS of ACTIVITIES - Technology promotion - Finance - Information and e-business - Entrepreneurship Development - Regional Development - Export Promotion

9 SERVICES to SMEs - Consultancy - Training - Laboratory tests - Supply of information - Support to R&D activities - Support to international relations and marketing - Support for Common facility workshops & labs

10 KOSGEB SERVICE UNITS * Institutes - 3 * Small Enterprises Development Centers (KÜGEM) - 28 * Technology Development Centers (TEKMER) - 10 * Representatives - 4

11 KÜGEM SMALL ENTERPRISES DEVELOPMENT CENTERS - Located at Small Industry Estates or Industrial Zones. - Provide to SMEs: * Consultancy * Training * Laboratory services * Information

12 TEKMER TECHNOLOGY DEVELOPMENT CENTERS Support Innovative entrepreneurs and SMEs by: - Providing workspace - Providing material and equipment support - Training in management, finance and marketing - Supporting consultancy from Universities

13 COMMON FACILITY WORKSHOPS AND LABORATORIES * Soft loan up to USD * To provide modern machine tools and equipment to SMEs * Machinery is recruited by KOSGEB * Building, staff and operation is within the responsibility of SME Cooperatives, Chambers etc.

14 INSTITUTES of KOSGEB * Market Survey and Export Promotion Institute * Regional Development Institute * Enterpreneurship Promotion Institute

15 MARKET SURVEY and EXPORT PROMOTION INSTITUTE * Facilitates international relations for SMEs * Provides support to participation of SMIs at national and international fairs * Organizes business trips for SMEs * Collaboration with international organizations for cooperation between Turkish and foreign SMEs

16 REGIONAL DEVELOPMENT INSTITUTE * Organizes support services to SMIs in less developed regions * Conducts surveys to determine the problems of enterprises * Supplys information to enterpreneurs and investors * Carrys out projects to improve the capabilities of SMEs

17 ENTREPRENEUR SHIP PROMOTION INSTITUTE * Carries out surveys of new business areas * Organizes Training for Business Plan preparation * Establishes Business Incubation Centers * Provides conselling to business starts ups

18 IMPACTS of KOSGEB SERVICES on SMEs - Quality improvement - Modernization in technology and management - Improved export performance - Improved qualifications of personnel - Higher productivity - Creation of technology oriented new enterprises

19 RESEARCH AND DEVELOPMENT INCENTIVES TO SME’s KOSGEB operates TEKMER’s (TECHNOLOGY DEVELOPMENT CENTREs) together with Universities and Chambers of Industries TEKMER’s are located at the campuses of Universities

20 INCENTIVES GIVEN TO INCUBATED SME’S IN TEKMER’S USD SOFT LOAN for materials USD GRANT for training, consultancy, software, marketing, employment, industrial properties rights etc.

21 Around 200 SME’s already being incubuted in TEKMER’s and 60 SME’s are graduated from TEKMER’s.

22 INNOVATION RELAY CENTERS KOSGEB applied to Ministry of Industry and Trade for offering a project to European Commission to win the property of IRC’s at TEKMER’s and for being NATIONAL COORDINATOR in 4th SME’S MULTIANNUAL PROGRAM

23 KOSGEB MEDA PROJECTS  BUSINESS INNOVATION CENTERS (Budget: Euro)  EU-ON LINE (KOBİNET) (Budget: Euro)  SHOE MAKING TRAINING INSTITUTE (Budget: Euro)  ENVIRONMENTAL STANDARDS IN TEXTILE SECTOR (Budget: Euro)  READY TO WEAR SECTOR TRAINING LABORATORY (Budget: Euro)  AUTOMOTIVE INDUSTRY (Budget: Euro)

24 KOSGEB web sites and