SMALL AND MEDIUM-SIZED ENTERPRISES
SMALL AND MEDIUM-SIZED ENTERPRISES
SMEs, which hold a significant place in the business world, also account for a significant percentage of employment and entrepreneurship. SMEs contribute significantly to the economy. They contribute to the country's economic development in terms of production, employment, and entrepreneurship.
So, what is an SME, which holds a significant share of the Turkish economy? How is an SME established? How are the legal processes for SMEs handled? How is an SME established? If you're looking for answers to questions like, "What is an SME?", you can find all the detailed information and answers in the rest of this article.
What is an SME?
Small and medium-sized enterprises, or SMEs in short, refer to businesses with a certain number of employees and a commercial size. These businesses generally have less capital and commercial activity structure than large-scale enterprises. SMEs constitute the most fundamental building block of the economy. You can find details on the classification of SMEs and the requirements for SMEs in the rest of this article.
How are SME Types Classified?
SMEs are classified according to the number of employees and their annual net sales revenue or financial balance sheet total. SMEs are classified into three categories as follows:
1. MICRO ENTERPRISES
Micro-sized enterprises are those with 1-9 employees and annual net sales revenues of up to 20 million TL.
2. SMALL ENTERPRISES
Small-sized enterprises are those with 10-49 employees and annual net sales revenues of 20-125 million TL.
3. MEDIUM-SIZED ENTERPRISES
Medium-sized enterprises are those with 50-249 employees and annual net sales revenues of 125-500 million TL.
WHAT ARE THE TYPES OF SMEs?
SMEs are classified by both their size and their field of activity. Here are the SMEs classified according to their activities:
1-COMMERCIAL SMEs
Those that buy and sell goods and services
2-INDUSTRIAL SMEs
Manufacturing businesses
3-SERVICE SMEs
Those that provide services.
4-AGRICULTURAL SMEs
Those that engage in agricultural production and are involved in the agricultural sector.
HOW CAN I ESTABLISH AN SME?
Establishing a small or medium-sized business is simple and easy, just like the standard company establishment process. There are certain requirements for qualifying as an SME; the number of employees and turnover are determined. In other words, the company is first established, and then its status as an SME is determined.
For detailed information about how to establish a company, the procedures, and documents required for establishing a company, please contact us.
The documents you need to obtain for the SME certificate are as follows: Your business registration certificate, business layout plan, business architectural project petition, and the necessary permits for your field of activity. With these documents, you can submit your application to the relevant directorates.
WHAT IS AN SME DECLARATION AND HOW DO I OBTAIN IT?
An SME declaration is the document that officially certifies whether a business is an SME. To be classified as an SME, a business must demonstrate its status as an SME in order to benefit from KOSGEB support, incentives, and loans. This is where the SME declaration comes in, certifying the business's status as an SME. The SME declaration includes information such as the business's number of employees, financial statements, and field of activity. By filing an SME declaration, businesses officially document their SME classification, thus benefiting from the same taxes and advantages as SMEs.
SME declarations can be filed through KOSGEB's official website or through their affiliated chambers of commerce and industry. The return must be prepared based on factual information, otherwise penalties may apply. The SME return must be updated annually.
Your business benefits from the advantages, tax deductions, and other benefits offered by SMEs by being classified as an SME. The advantages of being classified as an SME are exemplified below.
Advantages of Being an SME
-Low costs
-Fast decision-making and flexibility
-High employment rate
-Contribute to the economy of their country
-High export rate
-Less affected by crises
SMEs offer the opportunity to start small and grow. SMEs offer the opportunity to grow by starting small. SMEs provide economic support to both the entrepreneur and the country they are located in. SMEs adapt quickly to market changes. Because SMEs are small businesses, they can establish direct dialogue with customers. They provide better service and confidence to customers.
