The 3-year roadmap for SMEs, the driving force of the economy, has been announced. The SME Strategy and Action Plan (KSEP), covering the period 2015-2018 and outlining 5 Strategic Areas, aims to increase the international competitiveness of SMEs. The plan, which includes a section titled "Facilitating Access to Finance," points to the need to prioritize support for manufacturing industry SMEs.
The updated version of the KSEP (School Planning and Environment Improvement Plan), which was first approved in 2003 and has undergone various revisions in subsequent years, covering a 3-year period, was accepted by the High Planning Council (YPK).
The general objective of the plan, the implementation and coordination of which is under the Small and Medium-Sized Enterprises Development and Support Administration (KOSGEB), is defined as "Increasing the competitiveness of SMEs at the international level in a business environment sensitive to the needs of small businesses, and enhancing the contribution of SMEs to Turkey's economic growth."
The KSEP (Strategic Investment Plan), which will remain in effect until 2018, coinciding with the completion of the 10th Development Plan, encompasses 15 targets in 5 strategic areas and the actions and projects to be carried out by relevant institutions and organizations for SMEs within the framework of these targets. The strategic areas include SMEs in the industrial, service, and trade sectors.
THE ONLY EXCEPTION: SMES IN THE MANUFACTURING INDUSTRY
While the varying problems faced by SMEs from region to region and sector to sector were taken into account during the preparatory work, the updated KSEP (SME Development Plan) addresses SMEs holistically, and sectoral or regional actions and projects were not included in the 2015-2018 plan.
The introductory section of the plan uses the following statements as its basis: “The main objective at this point is to focus on the common problems and needs that SMEs from every sector and region may face, and to develop actions/projects to address these problems and needs. The only exception to this approach is SMEs operating in the manufacturing industry, in accordance with the emphasis in the 10th Development Plan on "the need for a strong manufacturing industry" and "increasing the share of the manufacturing industry in total added value."
5 STRATEGIC AREAS AND OBJECTIVES
When the 5 Strategic Areas (SA) and objectives in KSEP are listed one after another, the following picture emerges.
SA 1: Increasing the Competitiveness and Ensuring the Growth of SMEs
Objectives:
Ensuring the institutionalization and branding of SMEs and increasing their productivity levels.
Promoting a culture of collaborative work and project development in SMEs.
Increasing the compliance capabilities of SMEs with national and international legislation for sustainable development and growth.
Qualifying SME employers and employees to develop human capital in SMEs.
Prioritizing the support of manufacturing industry SMEs.
SA 2: Increasing the Export Capacity of SMEs and Raising Their Level of Internationalization
Objectives:
Increasing the access of SMEs wishing to export to international markets.
Ensuring continuity in exports by facilitating access to new markets for exporting SMEs and increasing their market diversification.
Increasing the share of medium-high technology domestic products in the exports of SMEs.
SA 3: Monitoring SMEs in the Process of Improving the Business and Investment Environment
Objectives:
Increasing sensitivity to the needs of SMEs in regulations affecting the business and investment environment and in the provision of public services, and bringing SME statistics into line with international standards.
Ensuring comprehensiveness in state support for SMEs.
SA 4: Development of R&D and Innovation Capacities of SMEs
Objectives:
Encouraging knowledge-based production structures in SMEs and achieving progress in patent and commercialization matters.
Prioritizing the support of innovative SMEs in terms of products, services, and business models.
Increasing collaborations between SMEs, large-scale domestic/international businesses, and universities.
SA 5: Facilitating SMEs' Access to Finance
Objectives:
Facilitating SMEs' access to bank loans.
Enabling SMEs to benefit more from alternative financing sources.
Facilitating SMEs' access to bank loans. LEADERS IN EMPLOYMENT AND ADDED VALUE
Economic units or enterprises employing fewer than 250 people annually and whose annual net sales revenue or financial balance sheet does not exceed 40 million Turkish Lira, and which are classified as micro-enterprises, small enterprises, and medium-sized enterprises, are defined as "SMEs". The 105-page Action Plan also includes statistics on SMEs in the EU and our country. The data reveals that SMEs are the backbone of the economy on both sides.
IN OUR COUNTRY
SMEs constitute 99% of all businesses in Turkey.
SMEs account for 63.3% of turnover.
According to main sector groups, 12.5% of SMEs operate in the "Industry" sector and 35.2% in the "Trade" sector.
According to the Turkish Statistical Institute (TÜİK) 2012 Annual Industry and Services Statistics, SMEs account for 65.5% of total goods and services purchases, 56.2% of production value, and 75.8% of the number of employees.
SMEs account for 59.8% of exports and 39.9% of imports.
SMEs account for 16.9% of R&D expenditures.
In the EU
In 2013, 21.5 million SMEs operated in the EU28.
Employing 88.8 million people, EU SMEs generated approximately €3.7 trillion in added value.
In other words, in 2013, European SMEs, which comprised 99 out of every 100 businesses, employed 2 out of every 3 employees and generated 58% of the added value.
This figure corresponds to 28% of the EU28's gross domestic product.
Considering the sectoral distribution of SMEs operating in the EU as of 2013; the share of SMEs in the "Industry" sector (NACE Rev. 2 B-E) among all SMEs was 10.4%, while the share of SMEs in the "Trade" sector (NACE Rev. 2 G) was 28.5%.
THE SITUATION AT THE MANUFACTURER LEVEL
Turkey: In 2013, out of 426,781 manufacturing sector businesses, 2,771 (6.5%) operated in sectors classified as high-tech. 98.4% of these businesses were SMEs. In terms of within-scale percentages, it can be said that 1.5% of medium-sized manufacturing sector SMEs operate in sectors classified as high-tech.
EU: In 2013, 2% of manufacturing SMEs in the EU operated in sectors classified as high-tech. This figure was 7% for large enterprises. High-tech SMEs generated 6% of the manufacturing sector's value added, while their share of employment was around 4%. The share of large high-tech enterprises in the manufacturing sector's value added was 13%. (Source: SME Strategy and Action Plan covering the period 2015-2018, pages 59-60)
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