SME Classification in Turkey

A micro enterprise has fewer than 10 employees.

A micro enterprise has annual revenue less than 3 million Turkish Lira (TL).

A small enterprise employs fewer than 50 people.

A small enterprise has annual revenue of less than 25 million Turkish Lira (TL).

A medium enterprise has fewer than 250 employees.

A medium enterprise's annual revenue is less than 125 million Turkish Lira (TL).

Small and Medium Enterprises (SMEs) are businesses in Turkey with specific employee and revenue limits.

In Turkey, SMEs comprised 99.8% of all businesses, accounting for a significant portion of employment, revenue, exports and imports in 2020.

There are approximately 3.3 million SMEs in Turkey.

An independent business that doesn't dominate its field, usually with limited employees and sales.

Generally fewer than 500 workers.

Normally fewer than 100 workers.

Government programs that reserve a portion of contracts for small businesses, offering assistance in financing government procurement.

Local initiatives offering resources and support to small start-ups, often involving SCORE counselors and SBDCs.

Investment in a small business by another company or individuals, in exchange for ownership.

Venture capital investments are often targeted at technology trends, such as digital health, digital technologies, cloud computing, cybersecurity, and life sciences.

Small businesses owned by women, who often face challenges in finding investors and accessing capital for growth.

Women & minority-owned businesses face challenges, including potentially smaller operations and difficulty in accessing capital and investors.

Small businesses produce significantly more patents per employee compared to larger firms.

Key innovations of the 20th century include the airplane, personal computer, soft contact lenses, and the zipper.

21st-century innovations include artificial intelligence, machine learning, virtual reality, autonomous vehicles, digital assistants, and cloud computing.

Only 7 out of 10 businesses survive at least two years; 50% to the five-year mark; and 70% by the 10-year mark.

Management shortcomings, insufficient financing, complying with government regulations, and taxes are common reasons why small businesses fail.

Overconfidence, poor communication, lack of financial knowledge, poor inventory/sales tracking, bad competitor/customer analysis, and poor time management are major factors behind small business failure.

Overestimating initial sales and underestimating required funding (for employees, marketing, inventory, and operating costs) commonly lead to insufficient financial resources.

Small firms, due to limited staff and resources, face immense compliance burdens which consume a significant amount of financial resources.

Taxes are a considerable financial burden for small businesses, even more significant per employee compared to larger firms.

A risk-taker in business, seeking profitable opportunities and taking risks to run a business.

Entrepreneurs focus on achieving goals with organizational resources, while managers manage existing businesses.

Identifies business opportunities and allocates resources to those opportunities.

Starts, manages, and then starts more businesses.

Uses business principles to create solutions to societal problems.

Starts a business for more flexible work hours and control over their life.

Companies sharing engines and transmissions.

A company that sells goods online.

Jobs focused on starting and running new businesses.

Motivation behind starting one's own business, often related to dissatisfaction with traditional work, financial needs, creating new goods/services or publicity from celebrity entrepreneurs.

The freedom and autonomy to make decisions related to running your own business.

Potential financial gain for entrepreneurs, especially if a new product is quickly adopted by consumers.

The lack of job security in traditional employment in comparison to the fluctuating nature of entrepreneurship.

Flexibility that can improve the quality of life for someone running their own venture, scheduling work to fit personal needs.

Globalization has significant effects on entrepreneurship, making markets increasingly interconnected and competitive.

The varying levels of entrepreneurial activity observed across different countries, categorized into Factor-Driven, Efficiency-Driven and Innovation-Driven economies.

A business owned and run by one person, where the owner and the business are not legally separate entities.

A business owned and run by two or more people, where the individuals and business are not legally separate entities.

A business that is legally separate from its owners. Owners have limited liability.

A corporation that operates in the same state where it's incorporated.

A corporation that operates in a state other than the one where it was incorporated.

A corporation that is incorporated in another country and operates in the U.S.

A type of corporation that's taxed like a partnership.

A business structure that offers limited liability to its owners, similar to a corporation, but is taxed like a partnership.

A corporation whose owners are its employees.

A corporation established for purposes other than profit.

A business with no capital requirements, simple set-up, and taxation based on profits, complete personal liability of the owner.(Turkey specific)

A business with minimum capital, limited liability for shareholders, and taxation on capital gains.(Turkey specific)

A business with minimal capital requirements (half goes into bank), limited liability for shareholders (only for managing members), and can be public.(Turkey specific)

Business structure with some shareholders having limited liability and others unlimited. (Turkey specific)