Government Support and Incentives to Grow Your Business

KOSGEB Support Programs (Entrepreneurship, KOBİGEL, etc.)

In Türkiye, KOSGEB is one of the most frequently consulted public institutions by small and medium-sized enterprises throughout their growth journey. KOSGEB support programs provide a comprehensive framework that addresses not only entrepreneurs who aim to establish new businesses, but also SMEs that are already operating and seeking to scale their activities. In this respect, KOSGEB offers a multi-layered support structure designed to serve businesses at different stages of development.

KOSGEB’s fundamental approach is to support sustainable business growth. Therefore, the incentives provided are not limited to addressing short-term financial needs. They are also intended to strengthen the institutional structure of enterprises, enhance their competitiveness, and reinforce their market position.

Entrepreneurship support programs offer a significant starting opportunity for individuals who wish to turn their business ideas into operational ventures. Within the scope of these programs, business establishment costs, machinery and equipment purchases, software expenditures, and certain operational expenses may be supported. This structure helps alleviate financial pressure, particularly for entrepreneurs with limited initial capital.

For SMEs that are already in operation, programs such as KOBİGEL come to the forefront. These programs aim to increase production capacity, support digital transformation, improve operational efficiency, and develop export-oriented capabilities. Support is typically provided within the framework of a defined project, and businesses are expected to adopt a structured and planned development approach.

A key feature of KOSGEB supports is that they include both non-repayable grants and repayable financial instruments. This structure offers flexible solutions aligned with the financial needs of enterprises. Especially during investment periods, it enables businesses to pursue growth initiatives without placing excessive pressure on cash flow.

Another distinguishing aspect of KOSGEB programs is that supports are not allocated randomly, but are designed around specific priority areas. Digital transformation, domestic production, export-oriented growth, and value-added activities are among these priorities. This approach aims to direct public resources toward strategically significant areas.

To benefit from these supports, it is not sufficient for an enterprise to merely qualify as an SME. The company’s financial structure, field of activity, past performance, and the project or business plan submitted within the scope of the support are also evaluated. As a result, KOSGEB supports are not automatic entitlements, but resources that can be accessed through planned and well-prepared applications.

One of the common mistakes among small businesses is viewing KOSGEB supports solely as cash assistance. In reality, these programs also instill disciplined planning, reporting, and goal-setting practices. These gains continue to contribute to business growth even after the support period has ended.

KOSGEB supports create a significant leverage effect for entrepreneurs and SMEs aiming to grow their businesses. However, achieving efficiency from this leverage depends on aligning the supports with the actual needs of the enterprise. Therefore, a thorough current-state analysis should be conducted prior to application, and the program that will create real value for the business should be clearly identified.

When used correctly, KOSGEB support programs provide powerful tools that accelerate business growth, reduce financial burden, and enhance competitiveness. The effective use of these tools paves the way for controlled and sustainable development rather than unplanned expansion.

TÜBİTAK and R&D Innovation Incentives

For businesses to maintain long-term competitiveness, it is not sufficient to merely sustain existing operations; they must also develop innovative products, services, and processes. Research and development (R&D) and innovation activities represent the primary driving force of growth, particularly for businesses operating in technology-oriented sectors. Incentives provided by TÜBİTAK constitute one of the most important public mechanisms supporting investments in this field.

TÜBİTAK supports are not limited solely to large-scale or well-established technology companies. Small and medium-sized enterprises, as well as early-stage startups, can benefit from these incentives through properly structured projects. This approach ensures that R&D activities are not restricted to companies with substantial capital resources and that innovative ideas can spread across a broader base.

TÜBİTAK’s R&D and innovation incentives cover projects aimed at solving concrete problems or creating new value that can differentiate a business in the market. These projects may include product development, software initiatives, improvement of production processes, digitalization applications, and advanced technology solutions, encompassing a very broad scope of activities.

By nature, R&D projects involve uncertainty and risk. The market acceptance of a developed product or technology cannot always be predicted with certainty. TÜBİTAK incentives mitigate this uncertainty by sharing the financial burden with the enterprise, thereby encouraging innovative initiatives. This enables businesses to invest in new areas without relying solely on existing revenue models.

The support mechanism is not limited to financial contributions alone. Throughout the project lifecycle, enterprises gain a more systematic working discipline in areas such as planning, budgeting, reporting, and performance monitoring. This discipline remains a lasting capability that strengthens project management competencies even after the support period ends.

The evaluation process for TÜBİTAK supports focuses largely on the innovative aspect of the project, its feasibility, and its commercialization potential. A technically strong idea may still be deemed insufficient if a clear market transfer and commercialization strategy is not presented. Therefore, R&D projects should be approached not only from a technical perspective, but also with a strong business-oriented mindset.

For small businesses, correctly understanding the concept of R&D is critically important. R&D does not necessarily mean developing an entirely new product. Efforts aimed at improving the performance of existing products, reducing production costs through process optimization, or implementing software-based solutions may also fall within this scope.

This perspective allows a greater number of businesses to benefit from TÜBİTAK incentives. Structuring development activities that are part of daily operations within a project-based framework provides a significant advantage during the support process. Conversely, unplanned and undocumented efforts often fall outside the scope of incentive mechanisms.

R&D and innovation incentives encourage businesses to position themselves around value-added products and services rather than competing solely on price. This approach enhances both profitability and market resilience in the long term.

Businesses benefiting from TÜBİTAK supports also gain opportunities to interact with academic institutions, technology providers, and various business partners throughout the project period. These interactions expand the enterprise’s visibility within the ecosystem and broaden its collaboration potential.

Export Incentives and Grants

Exporting is not merely a means of reaching new customers for businesses; it is also a strategic growth model that strengthens financial sustainability, generates foreign-currency-based revenues, and positions brand value on an international scale. However, entering foreign markets involves significant costs, uncertainties, and operational challenges, particularly for SMEs. At this point, export incentives and grants provided by the government enable businesses to manage this process in a more controlled and structured manner.

The primary objective of export incentives is to reduce the initial barriers businesses face when entering international markets. Market entry costs, compliance with foreign regulations, logistics organization, brand promotion, and trust-building activities represent the most cost-intensive phases of exporting. Incentive mechanisms offset a substantial portion of these costs, increasing the enterprise’s risk appetite and willingness to expand abroad.

Government-supported export grants should not be viewed as one-time or limited aids. Instead, they provide a multi-layered structure distributed across different stages of the export process, with complementary support elements. When integrated into a well-designed export strategy, these incentives create a strong leverage effect that significantly accelerates business growth.

Strategic Approach to Export Incentives

Export incentives aim not only to facilitate product sales abroad, but also to establish a long-term and sustainable export structure. Therefore, support mechanisms focus on institutionalization, branding, and market diversification rather than short-term sales. This approach transforms exporting from a sporadic activity into a planned growth instrument.

The export readiness phase often requires businesses to reassess habits developed in the domestic market. Product standardization, pricing strategies, after-sales support structures, and logistics organization become far more critical in international markets. Incentive programs assist businesses in managing this transformation in a healthier and more systematic way.

Scope of Supported Cost Items

Export incentives and grants are generally structured around specific cost items. This framework is designed to cover the primary expense areas businesses encounter throughout the export process.

• Consultancy expenses related to target market analysis, country reports, and market research services
• Participation costs for international fairs, exhibitions, and trade delegation organizations
• Advertising, promotion, and marketing expenditures conducted in foreign markets
• Brand registration, brand positioning, and overseas branding-related costs
• Certification, testing, and conformity assessment expenses required for export activities
• Infrastructure and promotional expenditures related to digital export and e-export activities

Supporting these cost items encourages businesses to approach export processes from a more professional perspective. In particular, marketing and branding supports contribute to building a value-driven export model rather than competing solely on price.

Incentives for Businesses New to Exporting

For businesses new to exporting, the greatest challenge is uncertainty. Decisions regarding target markets, product positioning, and the timeline for initial sales are often unclear. Government incentives create a safer environment for experimentation and learning during this early stage.

At this stage, incentives also facilitate engagement with the export ecosystem. Fairs, trade delegations, and international organizations provide not only sales opportunities, but also valuable market knowledge and sectoral insights.

Market Expansion and Volume Growth for Existing Exporters

For businesses already engaged in exporting, incentives primarily focus on market diversification and increasing export volumes. An export structure dependent on a single country or a limited number of markets exposes the enterprise to economic and political volatility.

Export grants enable businesses to more comfortably absorb the costs associated with entering new markets. This allows enterprises to expand their export portfolios in a balanced and sustainable manner.

To benefit from export incentives, businesses must regularly monitor support programs and manage application processes in a timely manner. As incentives are often offered within specific periods and conditions, unplanned or late applications may fail to deliver the expected outcomes.

Export incentives and grants represent not only financial support, but also a framework that encourages businesses to act more consciously, systematically, and institutionally when entering foreign markets. This framework transforms exporting from a temporary sales channel into an integral component of the enterprise’s long-term growth strategy.

Tax Reductions and Social Security Incentives (Employment Supports)

One of the most significant cost components businesses face during their growth journey is taxation and personnel-related expenses. For SMEs in particular, these costs place direct pressure on cash flow. Tax reductions and social security incentives provided by the state help alleviate this pressure, enabling businesses to establish a more sustainable financial structure.

The primary objective of tax and social security incentives is to strengthen businesses’ motivation to create employment, operate within the formal economy, and increase investments. Although these incentives are not direct grants, they offer regular and long-term savings effects that can generate substantial financial relief over time.

Tax reductions may include advantages applied to corporate income tax, personal income tax, withholding tax, and certain statutory fees. These reductions vary depending on the enterprise’s sector, geographic location, or the type of investment undertaken. In particular, investment- and employment-oriented activities may benefit from significant reductions in tax burdens.

Social security incentives, on the other hand, focus on reducing employment-related costs. New hires, youth employment, female workforce participation, employment of long-term unemployed individuals, or recruitment in designated regions are among the most common areas benefiting from social security premium supports. Through these incentives, businesses can maintain personnel costs at a more predictable level.

One common issue among small businesses is the perception that tax and social security incentives are overly complex and difficult to follow. As a result, many enterprises continue operations without being aware of incentives they are entitled to. However, with regular monitoring and correct implementation, these incentives can provide significant budgetary relief.

A fundamental prerequisite for benefiting from tax and social security incentives is operating within a registered and compliant business structure. Timely tax declarations, regular premium payments, and accurate reporting of employee information are critical to maintaining the sustainability of these incentives.

Another important contribution of these incentives is enabling businesses to make growth decisions more confidently. Personnel recruitment or investment plans that might otherwise be postponed due to cost concerns can be implemented earlier thanks to incentive advantages. This supports the expansion of market share and operational capacity.

Tax and social security incentives also play a role in discouraging informal practices. Registered employment and regular declarations reduce legal risks while strengthening the enterprise’s long-term financial credibility.

Effective utilization of these incentives requires close monitoring of financial and administrative processes. Accounting and human resources operations must be conducted in compliance with current regulations to prevent loss of incentives. In addition, since these supports are time-bound, expiration dates and regulatory changes should be reviewed regularly.

Tax reductions and social security incentives function as a hidden yet continuously operating support mechanism for businesses. When used correctly, this mechanism enhances financial resilience and makes the growth process more controlled and manageable.

Regional and Sectoral Support Programs

Regional and sectoral support programs constitute one of the most strategic components of the public incentive system. The primary objective of these programs is to ensure balanced development across the country, make regions with underutilized economic potential more attractive, and strengthen sectors of strategic importance. Accordingly, supports are structured not only based on company size, but also by considering geographic location and field of activity.

The regional incentive system implemented in Türkiye offers varying support rates depending on the socio-economic development level of provinces. While the same investment may receive limited support in a developed region, it can benefit from significantly higher incentives in a priority development region. This situation requires investment decisions to be evaluated not only according to market and logistics criteria, but also by taking incentive advantages into account.

Another important function of regional supports is reducing migration and increasing local employment. By making certain regions more attractive to investors, the establishment of new businesses, capacity expansion of existing enterprises, and retention of qualified workforce within the region are encouraged. This approach reflects a long-term policy perspective aimed at spreading economic development rather than concentrating it in a single center.

Advantages of Regional Supports for Businesses

Regional support programs offer significant cost advantages to businesses, particularly in sectors with high investment costs. These advantages shorten the return-on-investment period and reduce financial risks.

• Corporate tax reductions and tax exemptions applied at varying rates depending on the investment region
• Coverage of the employer’s share of social security premiums by the state for specified periods
• Interest or profit share supports for long-term investments
• Allocation of public land as investment sites
• Project-based grant supports provided through regional development agencies

These advantages are particularly evident in production- and employment-intensive investments. Regional supports ease the initial financial burden of investments, enabling businesses to establish a stronger foundation.

Logic Behind Sectoral Support Programs

Sectoral support programs focus on areas identified in line with the country’s economic and strategic objectives. The aim of these supports is to increase value added, accelerate technological transformation, and enhance international competitiveness in selected sectors.

Sectoral incentives encourage not only the continuation of existing production, but also efficiency improvements, quality enhancement, innovative product development, and export capacity building. For this reason, most sectoral supports are offered through a project-based approach.

• Special investment and project incentives for R&D- and technology-intensive sectors
• Modernization, traceability, and sustainability- focused supports in the agriculture and food sector
• Programs promoting renewable and efficient production in the energy and environmental fields
• Supports aimed at increasing domestic production in defense, healthcare, and strategic industries
• Personnel and infrastructure incentives for software and digital services sectors

Through these supports, businesses are guided toward investments that create long-term competitive advantages rather than focusing solely on short-term profitability. Sectoral incentives serve as an important leverage for deepening activities and specialization.

To benefit from regional and sectoral supports, businesses must correctly classify their activities and investment plans. Incorrect or incomplete definitions may result in reduced support rates or complete rejection of applications.

These support programs should be regarded not only as financial advantages but also as strategic guidance mechanisms. Businesses positioned in the right region and sector can manage their growth processes in a more controlled and sustainable manner by leveraging public incentives.

Low-Interest Loans and Financing Opportunities

One of the most fundamental needs businesses face during their growth journey is sustainable and accessible financing. Especially for SMEs, high interest rates and short-term borrowing models may cause investment decisions to be postponed or completely abandoned. At this point, state-supported low-interest loan and financing opportunities play a critical role in enabling businesses to implement their growth plans.

Low-interest loan mechanisms are subsidized through public supports, unlike conventional bank loans. This allows businesses to access financing with more favorable interest rates, longer maturities, and more flexible repayment terms compared to market conditions. This structure helps preserve cash flow, particularly during investment and capacity expansion periods.

Low-interest financing opportunities are not limited to investment loans alone. Working capital needs, machinery and equipment purchases, digital transformation investments, and financing models for export activities can also be evaluated within this scope. This diversity supports not only growth but also operational continuity requirements.

One significant advantage of publicly supported financing models is the risk-sharing approach. By assuming a portion of the interest burden, the state reduces the cost of borrowing for businesses. This makes the return on investment more predictable and facilitates financial planning. Especially in periods of uncertainty, this predictability provides substantial value for enterprises.

Another important contribution of low-interest loan opportunities for small businesses is lowering the threshold for access to finance. Enterprises that would normally struggle to obtain financing due to insufficient collateral or limited credit history can gain a stronger position in the eyes of banks through publicly supported models. This helps create a more inclusive financing ecosystem.

Effective use of financing supports is not limited to obtaining the loan itself. It is essential to clearly plan where the funds will be used, how the investment will generate added value, and how the repayment process will be managed. Poorly planned use of financing may place pressure on the business, despite the advantage of low interest rates.

Low-interest loans should be regarded not as tools for short-term debt settlement, but as strategic resources that support growth and transformation investments. This perspective strengthens financial discipline and ensures sustainable credit utilization.

State-supported financing models are often linked to specific conditions and performance criteria. Completion of investments, preservation of employment, or achievement of defined targets may be required to maintain these loans. This structure encourages businesses to adopt more planned and measurable growth models.

Low-interest loan and financing opportunities are not merely instruments that finance the present. When used correctly, these resources create a long-term structure that enhances future competitiveness, investment capacity, and financial resilience.

Application Process and Required Documents

Benefiting from government incentives and support programs is not limited to simply applying for an eligible program. The decisive factor is how systematically, accurately, and consistently the application process is managed. Many businesses that are eligible in terms of activity scope and scale miss these opportunities due to mistakes made during the application phase. Therefore, the application process should be considered an integral part of the business’s growth strategy.

Most support and incentive programs are implemented within specific rules to ensure effective and purpose- driven use of public resources. These rules cover a broad range of requirements, from application calendars and document formats to reporting obligations and monitoring processes. Businesses’ familiarity with these rules is critical for a healthy and successful progression of the process.

Application procedures are often carried out through digital platforms. However, this does not mean the process is simple. While electronic applications reduce physical paperwork, they place responsibility for content accuracy and declarations directly on the business. Incorrect or incomplete declarations may result not only in rejection, but also in legal and financial sanctions at later stages.

Pre-Application Preparation Phase

A successful application process begins long before filling out the application form. Pre-application preparation requires the business to correctly analyze both itself and the support program it intends to apply for. Proper preparation at this stage largely determines the outcome of the application.

Businesses must first clearly identify which support or incentive program aligns with their needs. Each program serves different objectives and includes distinct conditions. Applying to an unsuitable program results in wasted time and resources. Therefore, support guidelines, implementation principles, and previous call results should be carefully reviewed prior to application.

• Objective analysis of the business’s current financial, operational, and institutional status
• Evaluation of alignment between business goals and the purpose and scope of the selected support program
• Clarification of the investment or project concept to be submitted within the support framework
• Advance planning of application calendars and submission deadlines

One of the most common mistakes at this stage is assuming that supports are “easy to obtain.” In reality, many programs involve competitive evaluation processes and are implemented with limited budgets, meaning applications compete with each other in terms of quality.

Preparation of Required Documents

The most intensive and detail-oriented stage of the application process is the preparation of required documents. These documents demonstrate the legal existence, financial condition, and feasibility of the proposed investment or project. Consistency among documents is as important as completeness in the evaluation process.

• Official documents proving the legal entity and scope of activities of the business
• Up-to-date financial statements, balance sheets, and income-expense declarations
• Documents explaining the investment, project, or business plan in detail
• Quotations and cost breakdowns related to planned expenditures within the support framework
• Supporting documents for employment, export, or R&D activities

Documents must comply with standard formats and present information in a clear and readable manner. Complex, inconsistent, or incomplete documentation may weaken the application during evaluation, even if the project content itself is strong.

Evaluation, Approval, and Monitoring Process

Submission of the application does not conclude the process. During the evaluation phase, applications are reviewed based on technical and financial criteria. Requests for additional information or documentation are common at this stage. Timely and accurate responses to such requests are critical for a positive outcome.

For businesses approved for support, a monitoring and reporting phase begins. Expenses must be documented, activities carried out as planned, and periodic reports submitted. These obligations require a disciplined management approach throughout the support period.

The monitoring process should be viewed not only as a control mechanism but also as a structure that tracks business development. When managed correctly, it creates valuable references for future applications to other support programs.

The application process and required documents clearly demonstrate that government supports are designed for planned and informed businesses rather than random beneficiaries. Enterprises that master and manage this process effectively can benefit not only from a single support, but also from multiple incentive and financing instruments over the long term.

Frequently Asked Questions

What are the requirements to benefit from KOSGEB supports?

To benefit from KOSGEB supports, a business must first be registered in the KOSGEB database and fall within the SME definition. In addition, the company’s field of activity must be compatible with the scope of the support program applied for. Each support program includes different conditions based on sector, company size, duration of operation, and project content.

In general, the business is expected to be actively operating, fulfill its legal obligations, and present a feasible plan for the proposed investment or project within the support framework. Some supports may also require completion of entrepreneurship training or achievement of specific performance indicators as prerequisites.

Where can I apply for government incentives?

Applications for government incentives are submitted through the official digital platforms of the institutions providing the support. KOSGEB, TÜBİTAK, development agencies, and relevant ministries accept applications electronically and manage processes via these platforms.

Before applying, application guides, call texts, and implementation manuals published by the relevant institution should be reviewed carefully. These documents clearly outline required documents, application timelines, and evaluation criteria. Applications submitted through incorrect platforms or with incomplete information are not evaluated.

Which is more suitable for my business: a grant or a loan?

Grants and loan supports offer different advantages depending on the business’s needs and growth stage. Grants are often attractive for early-stage investments due to the absence of repayment obligations. However, they are usually project- based and require expenditures to comply with specific conditions.

Loan supports provide broader flexibility and help maintain cash flow. Low-interest or publicly supported loans, when planned correctly, can accelerate growth investments. Therefore, the choice should be made by considering the company’s financial structure, investment objectives, and repayment capacity.

Are government supports one-time or continuous?

Government supports are generally offered within specific programs and calls. Although individual supports may appear one-time in nature, a well-managed support process can open new opportunities over the long term. Businesses that successfully complete one program gain reference advantages when applying for future supports.

The key is to view supports not as permanent financing sources, but as strategic tools that accelerate specific development phases. This perspective enables more efficient and sustainable use of incentives.

If my application is rejected, can I apply again?

Rejection of an application does not mean that the business will never benefit from future supports. When rejection reasons are reviewed carefully, they often involve correctable issues such as missing documents, insufficient project content, or misalignment with program criteria.

Feedback obtained from rejected applications provides valuable insight to strengthen future submissions. Therefore, rejection decisions should be seen not as the end of the process, but as learning and improvement opportunities.