The Turkish Statistical Institute announced on Tuesday that 3.713 million enterprises operating in the industry and service sectors are classified as Small and Medium-sized Enterprises (SMEs).

These SMEs constituted a significant 99.7% of the total number of enterprises in 2023.

SMEs were responsible for 70.5% of employment, 47.9% of personnel costs, 47.4% of turnover, 41.6% of production value, and 40.1% of value added at factor costs. The majority of SMEs operated in the trade sector, with 36.1% in wholesale and retail trade, repair of motor vehicles and motorcycles, 15.2% in transportation and storage, and 12.3% in manufacturing.

In 2023, SMEs in wholesale and retail trade, repair of motor vehicles and motorcycles accounted for 26.5% of total SME employment, 22.9% of personnel costs, 53.2% of turnover, 24.8% of value added at factor cost, and 15.6% of production value.

The average value added per employee for SME initiatives increased significantly from 15,000 TL in 2009 to 296,000 TL in 2023. Medium-sized enterprises led with a value added per employee of 615,000 TL in 2023, while the average personnel cost per employee rose from 8,000 TL in 2009 to 149,000 TL in 2023.

Among SMEs in the manufacturing industry, 55.6% operated in the low technology class. When broken down by size, 56.7% of micro-scale enterprises, 50.3% of small-scale enterprises, and 49.6% of medium-scale enterprises operated in the low technology class.

In 2023, the birth rate of SMEs was 15.3%, with micro-scale enterprises having the highest birth rate at 16.3%. SMEs accounted for 35.0% of total exports and 20.0% of imports, with significant contributions from the trade and industrial sectors.

SMEs were responsible for 30.0% of total R&D expenditures, amounting to 72.763 billion TL. In terms of Full Time Equivalent (FTE), 46.3% of R&D personnel in financial and non-financial companies were employed by SMEs.

In 2023, SMEs filed 1,503 patent applications, with 445 patents registered. Medium-sized enterprises led with 582 patent applications and 180 patent registrations. (ILKHA)