SME DEFINITION UPDATED!

The net sales revenue or financial balance sheet limit, which is one of the necessary criteria for being an SME, was increased from 125 million TL to 250 million TL. The regulation change regarding the regulation was published in the Official Gazette.

Industry and Technology Minister Mustafa Varank stated that businesses have grown together with Turkey and said, “The business volumes of our businesses have expanded. Turnover and balance sheets increased. We've made this change to include more businesses in support. May this revision be beneficial and auspicious to all our SMEs.” said.

Regulation In Force

The amendment made in the Regulation on the Definition, Qualifications and Classification of Small and Medium-Sized Enterprises entered into force. The criteria used in the definition of SMEs were updated with the regulation.

Increased from 125 Million to 250 Million

According to this; Businesses that employ less than 250 people and whose annual net sales revenue or financial balance sheet does not exceed 250 million TL will be defined as SMEs. In the previous regulation, the upper limit to enter the SME class was 125 million lira.

Micro 5 Becomes Small 50 Million

With the regulation, the annual net sales revenue or financial balance sheet of micro enterprises with less than 10 employees was increased from 3 million TL to 5 million TL. Again, the limit for small businesses with less than 50 employees was increased from 25 million lira to 50 million lira. With the regulation, the upper limit for medium-sized enterprises with less than 250 employees was doubled from 125 million lira to 250 million lira.

Turnover and Balance Sheets Increased

Industry and Technology Minister Mustafa Varank made an assessment about the change in the financial criteria in the definition of SME and said, “Our businesses are growing together with Turkey. The business volumes of our businesses have expanded. Turnover and balance sheets increased. Accordingly, we received requests from our stakeholders to update the financial criteria in the definition of SME.” said.

They Will Also Benefit From KOSGEB Supports

Noting that he believes that SME businesses will produce more qualified, high-productivity, technology-oriented projects that will contribute to reducing the current account deficit with the regulation change, Minister Varank said, “We made this change to include more businesses in the scope of support. With the new SME definition arranged according to today's conditions, more enterprises will be able to benefit from other incentives of the state as well as KOSGEB supports. May this revision be beneficial and auspicious to all our SMEs.” he said.

10 Times in 10 Years

Financial constraints in the definition of SME were increased from 25 million liras to 40 million liras in 2012 and to 125 million liras in 2018. After 10 years, this upper limit has increased 10 times.

2 thousand 44 enterprises became SMEs

According to the SME statistics published by TURKSTAT in 2021, there are 3 million 427 thousand 891 enterprises in Turkey. The number of SMEs, which was 3 million 419 thousand 773, will increase to 3 million 421 thousand 817 with the regulation. In other words, 2 thousand 44 enterprises will be included in the SME class and will be able to benefit from the support and incentives provided by the state for SMEs.

The SME classification created by the new regulation is as follows: