Expanded definition of SME, revenue limit increased
Updated SME Criteria in Turkey Broadens Support for Growing Businesses
As of August 2025, the criteria for small and medium-sized enterprises (SMEs) in Turkey have been revised to better reflect the current economic landscape. The key changes include an increased financial threshold and a more comprehensive definition of SMEs.
Under the new regulations, enterprises must employ fewer than 250 persons annually. The annual net sales revenue or financial balance sheet total for medium-sized enterprises must not exceed one billion Turkish Lira, a significant increase from the previous 500 million Turkish Lira.
For small enterprises, the updated definition includes companies employing fewer than 50 people, with annual net sales revenue not exceeding 100 million Turkish Lira. This change allows more enterprises to benefit from SME-related supports, such as grants, tax exemptions, R&D supports, investment incentives, and low-interest loans backed by government guarantees.
The adjustments aim to align SME criteria with Turkey’s current economy and expand access to benefits tied to SME status. The revised regulation is expected to directly impact a wide range of businesses, particularly those experiencing strong growth and improved financial performance.
The new SME framework in Turkey may contribute to the overall growth and development of the economy, particularly in fast-growing sectors such as technology, manufacturing, and services. This change may foster innovation and entrepreneurship, creating a more conducive business environment for firms in these sectors.
The updated SME criteria in Turkey will allow a greater number of companies to benefit from support programs. The adjustment in SME criteria may open up opportunities for more businesses in these sectors to access resources that can help them grow and thrive.
In addition, the updated SME framework in Turkey defines a microenterprise as a business with fewer than 10 employees and an annual net sales revenue or financial balance sheet not exceeding 10 million liras. An intermediate-sized enterprise in Turkey is defined as a company with fewer than 250 employees and annual net sales revenue not exceeding 1 billion liras.
The change in SME classification criteria in Turkey was published in the Official Gazette, signaling its official implementation. This revised framework is expected to have a significant impact on the business landscape in Turkey, particularly in fast-growing sectors like technology, manufacturing, and services.
- The new SME framework in Turkey, with its expanded definition and financial threshold, may offer more businesses in the technology, manufacturing, and services sectors access to support programs such as grants, tax exemptions, R&D supports, investment incentives, and low-interest loans.
- The updated SME criteria in Turkey, including the introduction of the microenterprise and intermediate-sized enterprise classifications, may foster growth and innovation in various business sectors by providing a wider range of companies with opportunities to access resources that can aid in their development.
