The Definition of SMEs Has Changed

A regulation that alters the definition of Small and Medium-sized Enterprises (SMEs) was published in the Official Gazette on June 24, 2018 (Decision No. 2018/11828) and has come into effect. Among the changes in the regulation, the upper limits for “Annual net sales revenue” and “Financial balance sheet” have been raised from 40 million TL to 125 million TL, while the upper limit for the number of employees has remained at 250. The regulation also redefines the categories for micro, small, and medium-sized economic units and enterprises.

·         Micro Enterprises: Businesses that employ fewer than 10 people and have an annual net sales revenue or financial balance sheet that does not exceed 3 million TL.

·         Small Enterprises: Businesses that employ fewer than 50 people and have an annual sales revenue or financial balance sheet that does not exceed 25 million TL. Previously, the limit for sales revenue or financial balance sheet was 8 million TL, which has now been increased to 25 million TL.

·         Medium-sized Enterprises: Businesses that employ fewer than 250 people and have an annual sales revenue or financial balance sheet that does not exceed 125 million TL. Previously, the limit for sales revenue or financial balance sheet was 40 million TL, which has now been increased to 125 million TL.

From June 24, 2018, all businesses with annual net sales revenue below 125 million TL will be eligible to benefit from the support provided by KOSGEB.