KOSGEB

KOSGEB
Name	KOSGEB
Native name	Küçük ve Orta Ölçekli İşletmeleri Geliştirme ve Destekleme İdaresi Başkanlığı
Formed	1990
Headquarters	Ankara, Turkey
Area served	Turkey

KOSGEB is the Turkish agency responsible for supporting small and medium-sized enterprises. It provides development programs, financial assistance, training, and research aimed at enhancing competitiveness for micro, small, and medium firms across sectors. The agency interfaces with ministries, regional administrations, trade associations, chambers of commerce, and international partners to deliver enterprise development initiatives.

Overview

KOSGEB operates as a national institution linking Ankara policy coordination with regional implementation through provincial offices and technology centers, collaborating with Ministry of Industry and Technology (Turkey), Presidency of the Republic of Turkey, Council of Ministers (Turkey), Turkish Grand National Assembly, and local bodies such as Union of Chambers and Commodity Exchanges of Turkey and Small and Medium Enterprises Development Organizations in other countries. It targets beneficiaries including firms registered with Turkish Trade Registry Gazette, members of Istanbul Chamber of Commerce, Izmir Chamber of Commerce, Ankara Chamber of Commerce, and sectoral unions like Turkish Exporters Assembly, Turkish Industry and Business Association and Confederation of Turkish Trade Unions affiliates. The agency coordinates with research institutions such as Middle East Technical University, Boğaziçi University, Istanbul Technical University, Hacettepe University, and Bilkent University for capacity building and innovation projects.

History

Founded in 1990 under legislative frameworks involving the Turkish Constitution and statutes enacted by the Grand National Assembly of Turkey, the agency evolved through reforms associated with administrations of presidents like Turgut Özal and cabinets including Süleyman Demirel. Its development intersected with economic policy shifts under Anwar Sadat-era liberalization analogies and with regional initiatives influenced by the European Union accession process, Organisation for Economic Co-operation and Development dialogues, and bilateral agreements with countries such as Germany, Japan, United States, China, South Korea, and Qatar. Major milestones included the establishment of entrepreneurship support in coordination with the World Bank, participation in European Bank for Reconstruction and Development programs, and legal amendments following consultations with the Ministry of Finance (Turkey) and the Court of Accounts (Turkey).

Organization and Governance

Governance structures align with statutory boards, executive directors, and advisory councils comprising representatives from Ministry of Industry and Technology (Turkey), Union of Chambers and Commodity Exchanges of Turkey, Turkish Confederation of Employer Associations, and academic partners such as Sabancı University and Koç University. Operational leadership includes regional directors in provinces like Istanbul, Izmir, Bursa, Antalya, and Gaziantep, with governance informed by oversight from bodies including the Presidency of Strategy and Budget and auditing by the Court of Accounts (Turkey). The agency maintains technical committees convening experts from Turkish Standards Institution, Turkish Patent and Trademark Office, Scientific and Technological Research Council of Turkey, and representatives from sectoral federations such as the Turkish Automotive Manufacturers Association, Turkish Textile Employers Association, Turkish Food Industry Employers Confederation, and Turkish Pharmaceutical Manufacturers Association.

Programs and Services

KOSGEB implements grant schemes, training workshops, technology transfer programs, incubation services, and consultancy supports engaging stakeholders like European Commission initiatives, United Nations Development Programme, United Nations Industrial Development Organization, European Investment Bank, Asian Development Bank, and bilateral partners from Germany, France, Italy, Spain, Netherlands, Sweden, Norway, Denmark, Belgium, Poland, Czech Republic, Slovakia, Greece, Bulgaria, Romania, Serbia, Croatia, Hungary, Portugal, Ireland, Austria, Switzerland, Luxembourg, Liechtenstein, Iceland, Estonia, Latvia, Lithuania, Malta, Cyprus, Morocco, Egypt, Tunisia, Algeria, Saudi Arabia, United Arab Emirates, Kuwait, Oman, Bahrain, Lebanon, Jordan, Iraq, Iran, Pakistan, India, Bangladesh, Vietnam, Thailand, Malaysia, Singapore, Indonesia, Philippines, South Africa, Nigeria, Kenya, Ethiopia, and Brazil. Service lines include research and development incentives similar to programs run by Horizon 2020, skills training aligned with OECD recommendations, and export acceleration coordinated with Turkish Exporters Assembly and Turkish International Cooperation and Development Agency (TIKA).

Funding and Financial Support

Financial instruments include direct grants, low-interest loans mediated through state banks such as Ziraat Bankası, Türkiye İş Bankası, and Halkbank, credit guarantees coordinated with the Credit Guarantee Fund (Turkey), and co-financing with multilateral lenders like the World Bank, European Bank for Reconstruction and Development, and International Finance Corporation. Budget allocations are influenced by fiscal policy from the Ministry of Treasury and Finance (Turkey) and strategic planning by the Presidency of Strategy and Budget. The agency also channels funds from European funds administered by the European Union and bilateral development aid from partners including Germany, Japan, United States Agency for International Development, and Qatar Fund for Development.

Impact and Criticism

Support programs have been credited with enabling growth in regions such as Southeastern Anatolia, Central Anatolia, and the Aegean Region, contributing to successes among firms associated with TOBB University of Economics and Technology partnerships and clusters like the Ankara Technology Development Zone. Critics have pointed to issues raised by watchdogs including Transparency International affiliates, inquiries by the Court of Accounts (Turkey), and debates in the Turkish Grand National Assembly regarding efficiency, allocation transparency, and overlaps with initiatives run by Ministry of Industry and Technology (Turkey), Small and Medium Enterprises Development Bank (TSKB), and regional development agencies. Academic studies from institutions like Bilkent University, Middle East Technical University, and Istanbul University have evaluated program effectiveness, while think tanks such as the Economic Policy Research Foundation of Turkey and international evaluators from OECD and World Bank have recommended reforms.

International Cooperation and Projects

The agency engages in bilateral and multilateral cooperation with entities including the European Commission, United Nations Industrial Development Organization, World Bank, European Investment Bank, African Development Bank, Asian Development Bank, and national counterparts like Small and Medium Enterprise Agency (Japan), Small and Medium Business Administration (South Korea), Small Business Administration (United States), Federal Ministry for Economic Affairs and Climate Action (Germany), Department for Business and Trade (United Kingdom), Ministry of Trade (China), Ministry of Commerce (India), Ministry of Trade (Vietnam), and Ministry of Economy (France). Joint projects include cluster development, technology transfer, entrepreneurship exchange programs, and participation in regional initiatives linked to Black Sea Economic Cooperation, Central Asia Regional Economic Cooperation Program, and Belt and Road Initiative partners. Collaborative research and capacity-building have involved universities and institutes such as University of Cambridge, Massachusetts Institute of Technology, Stanford University, London School of Economics, INSEAD, HEC Paris, Technical University of Munich, and ETH Zurich alongside local Turkish universities.

Category:Turkish government agencies Category:Business support organizations