CICA TURKEY, SMEs & KOSGEB “Conference on Interaction and Confidence SMALL AND MEDIUM ENTERPRISE DEVELOPMENT ORGANIZATION TURKEY, SMEs & KOSGEB CICA “Conference on Interaction and Confidence Building Measures in Asia” Mehmet Görkem GÜRBÜZ Tayland, Bangkok, 30.03.2011 1

KOSGEB SMALL AND MEDIUM ENTERPRISE DEVELOPMENT ORGANIZATION CONTENT AN OVERVIEW TO TURKEY SMEs IN TURKEY KOSGEB AND ITS SERVICES 2

SMALL AND MEDIUM ENTERPRISE DEVELOPMENT ORGANIZATION KOSGEB SMALL AND MEDIUM ENTERPRISE DEVELOPMENT ORGANIZATION AN OVERVIEW TO TURKEY 3

SMALL AND MEDIUM ENTERPRISE DEVELOPMENT ORGANIZATION KOSGEB SMALL AND MEDIUM ENTERPRISE DEVELOPMENT ORGANIZATION TURKEY IS LOCATED IN THE HEART OF A REGION WITH MORE THAN ONE BILLION POPULATION AND ALMOST ONE QUARTER OF WORLD OUTPUT. 4

KOSGEB SMALL AND MEDIUM ENTERPRISE DEVELOPMENT ORGANIZATION ADVANTAGES OF TURKEY STRATEGIC GEOGRAPHICAL LOCATION HUGE DOMESTIC MARKET QUALIFIED AND COST-EFFICIENT LABOUR FORCE STRONG LOCAL INDUSTRY OFFERING INVESTORS A MARKET POTENTIAL NEARBY EXTERNAL MARKETS 5

KOSGEB SMALL AND MEDIUM ENTERPRISE DEVELOPMENT ORGANIZATION BASIC STATISTICS AND SOCIAL INDICATORS OF TURKEY GEOGRAHICAL AREA (KM2) İS 780 576 POPULATION IS 72.56 MILLION, (2009) POPULATION OVER 15 YEARS OLD IS 52 MILLION, 75 % OF THE POPULATION LIVE IN CITIES , APPROXIMATELY 36% OF POPULATION LIVE IN 5 BIG CITIES, ANNUAL POPULATION INCREASE RATE IS 1.31%, AVERAGE AGE IS 28,5, COMPULSORY EDUCATION IS 8 YEARS NUMBER OF THE UNIVERSITY IS 139 (94 STATE, 45 PRIVATE ) AVERAGE UNEMPLOYMENT RATE IS 11.6 %. (2009) 49 TYPES OF MINES RESERVE AND WORLD’S 51% OF BORON RESERVE ARE IN TURKEY 6 Source: tuik-2008

KOSGEB SMALL AND MEDIUM ENTERPRISE DEVELOPMENT ORGANIZATION ANNUAL DISTRIBUTION OF LABOUR FORCE (%) (2008) AGRICULTURE 24 49 SERVICES 21 INDUSTRY 6 CONSTRUCTION Source: www.tuik.gov.tr

KOSGEB SMALL AND MEDIUM ENTERPRISE DEVELOPMENT ORGANIZATION BASIC ECONOMIC FIGURES FIGURES 2007 2008 2009 GROWTH RATE (%) 4.7 0.9 -3.3 PER CAPITA GDP (USD) 9.234 10.436 8.427 INFLATION RATE (%) 8.39 10.06 6.5 INDUSTRIAL PRODUCTION GROWTH (%) 6.9 -0.9 CAPACITY UTILIZATION RATE OF INDUSTRY (%) 81.8 78.1 69.7 RATIO OF R&D EXPENDITURES TO GDP 0,71 0,73 0,85 PRIVATE SECTOR’S PORTION AT R&D EXPENDITURES (%) 41.3 44,2 40 THE NUMBER OF R&D FULL TIME STAFF 63 377 67 244 73 500 Source: www.tuik.gov.tr

TURKEY IS RANKED AS THE; 16th BIGGEST ECONOMY IN THE WORLD, KOSGEB SMALL AND MEDIUM ENTERPRISE DEVELOPMENT ORGANIZATION TURKEY IS RANKED AS THE; 16th BIGGEST ECONOMY IN THE WORLD, 6th BIGGEST ECONOMY IN EUROPE 9

KOSGEB SMALL AND MEDIUM ENTERPRISE DEVELOPMENT ORGANIZATION BASIC ECONOMIC FIGURES (BILLION USD) FIGURES 2007 2008 2009 2010* EXPORT 107.2 132 102 113 IMPORT 170 202 140 185 EXPORT COVERAGE IMPORT 63% 65% 73% 61% TOTAL FOREIGN TRADE VOLUME 277.2 334 242 298 FOREIGN TRADE BALANCE -62,8 -70 -38 -72 10 Source: www.tuik.gov.tr *2010 estimated

KOSGEB SMALL AND MEDIUM ENTERPRISE DEVELOPMENT ORGANIZATION ANNUAL EXPORT DATA THROUGH LEADING EXPORT COUNTRIES IN TURKEY (Million USD) COUNTRIES 2007 2008 2009 USA 4.171 4.300 3225 GERMANY 11.993(1) 12.958(1) 9.800(1) U.A.E 3.241 7.975(3) 2.899 FRANCE 5.975 6.618 6.212(2) IRAQ 2.845 3.917 5.126 ENGLAND 8.627(2) 8.159(2) 5.923(3) SPAIN 4.580 4.047 2.826 SWITZERLAND 935 2.857 3.932 ITALY 7.480(3) 7.8190 5.893 RUSSIAN FEDERATION 4.727 6.483 3.203 11 Source: www.tuik.gov.tr

KOSGEB SMALL AND MEDIUM ENTERPRISE DEVELOPMENT ORGANIZATION FOREIGN INVESTMENTS IN TURKEY (billion USD) 12

SMALL AND MEDIUM ENTERPRISE DEVELOPMENT ORGANIZATION KOSGEB SMALL AND MEDIUM ENTERPRISE DEVELOPMENT ORGANIZATION SMEs IN TURKEY 13

SMALL AND MEDIUM ENTERPRISE DEVELOPMENT ORGANIZATION KOSGEB SMALL AND MEDIUM ENTERPRISE DEVELOPMENT ORGANIZATION SMEs Large share in total number of enterprises Large share in total number of employment ECONOMIC DEVELOPMENT (SMEs) play a very important role in the Turkish economy owing to their large share in the total number of enterprises and in total employment. The role they play in decreasing the unemployment rate and creating new areas of employment and rapidly adaption to the changes in the market conditions provides positive contribution to economic and social development, DRIVING FORCE 14

SMALL AND MEDIUM ENTERPRISE DEVELOPMENT ORGANIZATION KOSGEB SMALL AND MEDIUM ENTERPRISE DEVELOPMENT ORGANIZATION SME DEFINITION ANNUAL FINANCIAL BALANCE SHEET ANNUAL NET SALES REVENUE NUMBER OF EMPLOYEES DEFINITION CRITERIA (Scale) ≤25 million TL <16,2 million $ ≤25 million TL <16,2 million $ 50-250 MEDIUM ≤5 million TL <3,25 million $ ≤5 million TL <3,25 million $ 10-49 SMALL ≤1 million TL <0,65 million $ 1-9 MICRO The required legal regulations to use a definition adopted by the EU in all practices related to the SMEs were conducted by the Ministry of Industry and Trade and Regulations on the definition,qualities and classification of SMEs come into force as of 18.may.2006 The enterprises are classified according to their scales,financial balance sheets and types 15

KOSGEB SMALL AND MEDIUM ENTERPRISE DEVELOPMENT ORGANIZATION DISTRIBUTION OF SMEs IN TURKEY SMEs CONSTITUTE; 99.9 OF TOTAL ENTERPRISES INCLUDING THOSE IN THE SERVICE SECTOR 81 OF TOTAL EMPLOYMENT 62 OF TOTAL INVESTMENTS 59 OF TOTAL VALUE ADDED 56 OF TOTAL EXPORT (2009) 16

KOSGEB SMALL AND MEDIUM ENTERPRISE DEVELOPMENT ORGANIZATION DISTRIBUTION OF SMEs (%) 95,54% 4,03% 0,35% 0,08% MICRO SMALL MEDIUM LARGE 17 Source:Tuik 2008

SMALL AND MEDIUM ENTERPRISE DEVELOPMENT ORGANIZATION KOSGEB SMALL AND MEDIUM ENTERPRISE DEVELOPMENT ORGANIZATION SECTORAL DISTRIBUTIONS OF SMEs (%) Other Manufacturing 12,3 5.4 Service 82,3 Trade 45. 2 Other services 37.1 *Other: Energy, MInIng, ConstructIon 18 Source: Tüik 2007

KOSGEB SMALL AND MEDIUM ENTERPRISE DEVELOPMENT ORGANIZATION SECTORAL DISTRIBUTION OF ENTERPRISES Sectors Number of Enterprises % Number of Employees Manufacturing 316 584 12.3 2 777 247 28.3 Transportation, Storing, Telecommunication 443 203 17.26 996 174 10.16 Hotel and Restaurants 209 231 8.15 607 345 6.19 Other Community, Social and Personal Service Activities 122 206 4.76 228 698 2.33 Real Estate, Renting and Business Activities 154 632 6.02 834 144 8.50 Construction 107 166 4.17 720 325 7.34 Health and Social Work 40 673 1.58 177 549 1.81 Education Services 8 270 0.32 154 299 1.57 Mining and Quarrying 2 245 0.09 97 906 1.00 Electricity, Gas and Water Distribution 2 842 0.11 99 302 1.01 Wholesale and retail trade; repair of motor vehicles, household goods. 1 160 592 45.20 3 114 718 31.76 Total 2 567 644 100 9 807 707 19 Source: TUIK 2007

KOSGEB SMALL AND MEDIUM ENTERPRISE DEVELOPMENT ORGANIZATION PROBLEMS OF TURKISH SMEs FINANCING HIGH QUALIFIED HUMON RESOURCE INFORMATION AND COMMUNICATION TECHNOLOGIES TECHNOLOGY, R&D AND INNOVATION MARKETING AND EXPORT ENTREPRENEURSHIP QUALITY AND STANDARDIZATION ENVIRONMENT Financing: Because of guarantee problems, SMEs’ credıt shares are low and the number of credıt baıl companıes establıshed to resolve thıs problem ıs defıcıent. Qualıfıed human resources:The dıffıcultıes arısıng from tax, compulsory employment and socıal securıty expendıtures are very ımportant cost component for the smes. If hıgh qualıty wıll be preference for the employees, the cost wıll much more ıncrease. On the other hand ın our country the number of hıgh and medıum qualıfıed employees whıch we need for the ındustry sector are defıcıent. Informatıon and communıcatıon technologıes: because of the hıgh costs of softwares, hardwares and ınfrastructure ınvestments our smes could not benefıt from ınformatıon and communıcatıon technologıes. Technology, r&d and ınnovatıon: because of not reachıng of our country to a sustaınable level of technology productıon, the ınvestment wıll be realızed for softwares whıch have advanced technology, hıgh effıcıency and low costs for maıntenance wıll be very dıffıcult for our smes. Marketıng and export: the problems of smes for marketıng and export are lack of hıgh qualıfıed managers, trade mark conscıousness and not buıldıng of advanced departments for marketıng and export ıssues. Entrepreneurshıp: entrepreneurshıp culture ıs lack ın our country. Entrepreneurs have problems about creatıng a busıness and preparıng study plans. The maın problem ıs the need of entrepreneurshıp capıtal for the entrepreneurs. Qualıty and standardızatıon:SMEs could not afford product and system certıfıcatıon condıtıons ın target foreıgn markets because of varıous reasons. furthermore, smes whıch could afford thıs condıtıon could not provıde the sustaınabılıty because of hıgh costs. the smes whıch tolerate hıgh costs to adapt the standarts start to encounter wıth unfaır competıtıon. Envıronment: there ıs a lack of envıronmentally productıon conscıousness and lack of ınformatıon about envıronment standards and waste control. 20

KOSGEB SMALL AND MEDIUM ENTERPRISE DEVELOPMENT ORGANIZATION INSTITUTIONAL STRUCTURE INSTITUTIONS ACTIVITIES PUBLIC ORGANISATIONS MINISTRY OF INDUSTRY AND TRADE (MoIT) FACILITATES DETERMINATION OF INDUSTRIAL POLICIES, PROVIDES AND ENCOURAGES RAPID AND SUSTAINABLE DEVELOPMENT OF INDUSTRY, PROMOTES OF COMPETITIVENESS OF SMEs, HOLDS RECORDS OF THE INDUSTRIAL ENTERPRISES MINISTRY OF FINANCE TAXATION, FINANCE MATTERS FOR ENTERPRISES MINISTRY OF LABOUR AND SOCIAL SECURITY RULES FOR EMPLOYMENT, REGISTRATION SMALL AND MEDIUM ENTERPRISES DEVELOPMENT ORGANISATION (KOSGEB) SUPPORT MECHANISMS FOR INCREASING COMPETIVENESS OF SMES, ENCOURAGING ENTERPRENEURSHIP AND INNOVATIVE START-UPS UNDERSECRETARIAT OF STATE PLANNING (DPT) PREPARES LONG TERM DEVELOPMENT PLANS AND ANNUAL PROGRAMMES ,DEVELOPES FUTURE ORIENTED STRATEGIES AND POLICIES IN COOPERATION WITH RELETED INSTITUTIONS THE UNDERSECRETARIAT OF TREASURY STATE AID FOR INVESTMENTS, FINANCIAL TRANSFERS TO PUBLIC ENTERPRISES THE UNDERSECRETARIAT OF FOREIGN TRADE SUPPORT MECHANISMS FOR IMPROVING EXPORT CAPACITY TURKEY SCIENTIFIC AND TECHNOLOGIC RESEARCH INSTITUTE (TÜBİTAK) SUPPORT AND POLICY MAKING FOR R&D, SCIENTIFIC RESEARCH INNOVATION ACTIVITIES KOSGEB is the unique PUBLIC AGENCY founded to provide supports and services to SMEs and entrepreneurs. 21

KOSGEB SMALL AND MEDIUM ENTERPRISE DEVELOPMENT ORGANIZATION SME POLICY MAKING INSTRUMENTS ANNUAL PROGRAMME AND 3 YEARS MEDIUM TERM PROGRAMME 5 YEARS DEVELOPMENT PROGRAMME PROMOTING A BETTER INVESTMENT ENVIRONMENT COMMITTEE WITHIN EU MEMBERSHIP- ENTERPRISE AND INDUSTRY POLICIES- SME STRATEGY AND ACTION PLAN (2011 – 2013) LAW NUMBER: 5018 – PUBLIC FINANCE MANAGEMENT AND CONTROL KOSGEB STRATEGIC PLAN (2011 – 2015) 22

KOSGEB’S ORGANIZATIONAL STRUCTURE AND ITS SERVICES SMALL AND MEDIUM ENTERPRISE DEVELOPMENT ORGANIZATION KOSGEB’S ORGANIZATIONAL STRUCTURE AND ITS SERVICES 23

KOSGEB SMALL AND MEDIUM ENTERPRISE DEVELOPMENT ORGANIZATION SMALL AND MEDIUM ENTERPRISE DEVELOPMENT ORGANISATION THE ONLY PUBLIC AGENCY FOUNDED TO PROVIDE SUPPORTS TO SMEs. ESTABLISHED IN 1990. IN 2009, WITH A LEGAL ARRANGEMENT, AS WELL AS MANUFACTURING SECTORS, SERVICE AND TRADE SECTORS WERE INCLUDED TO THE KOSGEB TARGET AUDIENCE AND THE COUNCIL OF MINISTERS HAS GIVEN THE AUTHORITY TO DETERMINE THE SECTOR AND REGIONAL PRIORITIES OF SUPPORTS GIVEN BY KOSGEB FOR SMES Excluded sectors are ; Agriculture, forestry and fishing Financial and insurance activities Real estate activities Public administration and defence; compulsory social security Education Human health and social work activities Activities of households as employers; undifferentiated goods - and services - producing activities of households for own use Activities of extraterritorial organisations and bodies 24

KOSGEB SMALL AND MEDIUM ENTERPRISE DEVELOPMENT ORGANIZATION GOAL OF KOSGEB TO INCREASE SME’S SHARE AND EFFECTIVENESS, TO RAISE THEIR COMPETITIVENESS, TO REALIZE INTEGRATION WITHIN SECTORS IN LINE WITH THE ECONOMIC DEVELOPMENTS, TO INCREASE SME’S TECHNOLOGY LEVELS. 25

KOSGEB SMALL AND MEDIUM ENTERPRISE DEVELOPMENT ORGANIZATION GENERAL ACTIVITIES TO DEVELOP SUPPORT MECHANISMS FOR TURKISH SMES TO ENCOURAGE ENTREPRENEURSHIP REGARDING TO NEW TECHNOLOGY AND INNOVATION TO FOSTER R&D FOCUSED JOB CREATION TO DISSEMINATE RELEVANT INFORMATION TO SMES TO IMPROVE CAPACITY OF SMES TO STRENGTHEN UNIVERSITY/INDUSTRY COOPERATION 26

KOSGEB SMALL AND MEDIUM ENTERPRISE DEVELOPMENT ORGANIZATION MANAGEMENT BODIES GENERAL ASSEMBLY EXECUTIVE COMMITTEE The bodies under the Organisation are as follows. General assembly,executive committee and KOSGEB presidency GENERAL ASSEMBLY The General Assembly is chaired by the Prime Minister or the Minister of State to be appointed by the Prime Minister and is represented by the ministers, public and private sector representatives . The General Assembly convene at least once a year. The Responsibilities of the General Assembly Include to supervise and coordinate development and support strategies EXECUTIVE COMMITTEE Executive Committee is chaired by the Minister of Industry and Trade and is composed of the Undersecretaries of Ministries, private and universities representatives. The Executive Committee is convene every other month .The secretarial work of the Executive Committee is carried out by KOSGEB. The duties of the Executive Committee are as follows; Pursuant to objectives and policies stipulated by the General Assembly, to take decisions for the development and support enterprises and to follow up their achievement. To approve the budget, staff, number of temporary consultants and the daily amount to be paid to the staff. To examine the draft regulations concerning the duties, responsibilities and authorities of the bodies under KOSGEB, to finalize the approved regulations not later than 6 months after the acceptance of this Law. To take decisions in connection with acquisition and management of real estate and sale of such properties, when deemed necessary, upon prior approval of the General Assembly. PRESIDENCY 27

KOSGEB SMALL AND MEDIUM ENTERPRISE DEVELOPMENT ORGANIZATION KOSGEB ORGANISATIONAL STRUCTURE PRESIDENCY HEAD QUARTER UNITS SERVICE PROVIDERS Service Centers SME Research and Project Co. Unit SME Finance Unit Technology Development Centers EU & International Relations Unit Synergy Focal Points Strategy Development & Financial Services Unit Administrative Services Unit Information Systems Unit Information Management & Decision Support Coordination Unit Technology and Innovation Supports Coordination Unit Sevice Centers Coordination Unit Internal Support Unit; Legal Advisory Office Human Resources Unit and Administrative UnIt

KOSGEB SMALL AND MEDIUM ENTERPRISE DEVELOPMENT ORGANIZATION BUDGET SOURCES BUSINESS CONCERN AND PROPERTY INCOMES PRIVATE INCOMES WITH DONATIONS AND AIDS OTHER INCOMES - SECURITY , PAYMENTS IN ARREAR AND OTHER INTERESTS - SHARES OF THE PERSONS AND ORGANIZATIONS (STATE BANKS, KIT, ORGANIZED INDUSTRIAL REGIONS, THE UNION OF CHAMBERS AND COMMODITY EXCHANGES OF TURKEY,, TURKISH ARTISANS AND ARTISTS’ CONFEDERATION, CURE SHARE FROM THE EMPLOYEES) CAPITAL INCOMES REVENUES FROM THE CLAIMS

KOSGEB SMALL AND MEDIUM ENTERPRISE DEVELOPMENT ORGANIZATION 2011 BUDGET KOSGEB BUDGET 430.000.000 TL 274.000.000 $ KOSGEB SUPPORT BUDGET 297.000.000 TL 189.000.000 $ SUPPORT BUDGET/ GENERAL BUDGET % 69 1$=1.57 TL 185.653.644

KOSGEB SMALL AND MEDIUM ENTERPRISE DEVELOPMENT ORGANIZATION KOSGEB’S EMPLOYMENT POSITION (2011) Number of Personnel PRESIDENCY 311 SERVICE CENTER 567 TOTAL 878

KOSGEB SMALL AND MEDIUM ENTERPRISE DEVELOPMENT ORGANIZATION FUNCTIONAL CYCLE OF UNITS DEPARTMENTS WHICH DEVELOP POLICIES AND MODELS EntrepreneurshIp Development Center RegIonal and Local Development Center Market Research and Export PromotIon Center TraInIng and Consultancy Center FInance Center DEPARTMENTS WHICH SUPPLY SERVICE Service Centers Technology Development Centers MONITORING, EVALUATION, COORDINATION, AUDIT DEPARTMENTS 32

KOSGEB SMALL AND MEDIUM ENTERPRISE DEVELOPMENT ORGANIZATION DEPARTMENTS WHICH DEVELOPE POLICIES AND MODELS TO CONSTITUTE REGIONAL AND LOCAL ECONOMIC DEVELOPMENT MODELS TO PREPARE REPORTS TO DEVELOP KOSGEB SUPPORT MECHANISMS, DEVELOPING OFFERS AND PREPARING LEGISLATION TO ESTABLISH NEW FINANCIAL MODELS AND TO IMPROVE FINANCIAL SUPPORT TOOLS TO COVER SMEs’ EDUCATION AND CONSULTING NEEDS TO MAKE RESEARCHS ON FOREIGN MARKETS AND LEGISLATIONS 33

KOSGEB SMALL AND MEDIUM ENTERPRISE DEVELOPMENT ORGANIZATION DEPARTMENTS WHICH IMPLEMENT THE MODELS SERVICE CENTERS TO STRENGTH THE RELATIONSHIPS BETWEEN INDUSTRY AND STATE TO PROVIDE KOSGEB SUPPORT MECHANISMS TO IMPLEMENT PROJECTS SEVERAL TEST AND ANALYSIS SERVICES REGARDING TO SMEs COORDINATION TO BUILD LABORATORIES FOR SMEs IN INDUSTRIAL ZONES INDUSTRY İGEM İGEM 34

KOSGEB SMALL AND MEDIUM ENTERPRISE DEVELOPMENT ORGANIZATION TECHNOLOGY DEVELOPMENT CENTERS TO SUPPORT R&D PROJECTS OF MICRO SIZED ENTERPRISES TO SUPPORT SMEs WHICH AIM TO DEVELOP PRODUCTS WITH HIGH ADDED VALUE AND TECHNOLOGICAL PRODUCTION SYSTEMS TRANSFERING HE RESULTS OF R&D STUDIES INTO ECONOMICAL VALUE TO DEVELOP COOPERATION BETWEEN UNIVERSITIES AND INDUSTRY UNIVERSITY TEKMER the CollaboratIon Protocols Is sIgned between KOSGEB and related UnIversItIes Potentıal Enterprıses wIshIng to establIsh theIr own technologIcally orIented enterprIse and exIstIng SMEs wIshIng to add a technologIcal dImensIon to theIr ongoIng actIvItIes contact TEKMER & fIll the user frIendly ApplIcatIon Form (BusIness Plan document)

KOSGEB SMALL AND MEDIUM ENTERPRISE DEVELOPMENT ORGANIZATION SYNERGY FOCAL POINTS MICRO SERVICE POINTS LOCATED IN CHAMBERS OF COMMERCE & INDUSTRY AND OTHER ORGANIZATIONS TO DELIVER KOSGEB SUPPORT MECHANISMS In order to enlarge KOSGEB ‘s services to the provinces where have not KOSGEB service centers, SFP is established with cooperation KOSGEB and chamber of industry and trade 36

KOSGEB SMALL AND MEDIUM ENTERPRISE DEVELOPMENT ORGANIZATION SERVICE CENTERS (1990-2009) KOSGEB Services are accessible for whole country; 55 SERVICE CENTERS (49 City) 93 SYNERGY FOCAL POINTS 37

KOSGEB SMALL AND MEDIUM ENTERPRISE DEVELOPMENT ORGANIZATION KOSGEB SUPPORTS SUPPORTS WITHIN THE FRAMEWORK OF KOSGEB SUPPORT MECHANISMS (reimbursable and non reimbursable support payment) CREDIT SUPPORTS (non reimbursable support payment) Support upper lImIts,support ratIos for developed regions (DR), normal regions (NR) and regions wIth priority In development (DPR) and support payment types has been determIned at KOSGEB support regulatIons Support mechanIsms 1 - DIrect Application by Enterprises 2 - Enterprise SituatIon Analysis 3 - Field Surveys 4 - Application in the Electronic Environment Support implementation; Enterprises are directed to strategic objectives depending on their capacity and competitiveness power Enterprises identify the route to get to their destinations with SRM Cooperation with the enterprises prepared SRM, lasts for 1-3 years Type of support is determined according to objectives in the SRM All the process is monitored

KOSGEB SMALL AND MEDIUM ENTERPRISE DEVELOPMENT ORGANIZATION SME PROJECT SUPPORT PROGRAMME THEMATIC PROJECT SUPPORT PROGRAMME COOPERATİON- COLLABORATION SUPPORT PROGRAMME GENEL KREDI PROGRAMLARI KAPSAMINDA SAĞLANAN DESTEKLER SUPPORTS UNDER KOSGEB REGULATION R&D, INNOVATION AND INDUSTRIAL PRACTICE SUPPORT PROGRAMME ENTREPRENEURSHIP SUPPORT PROGRAMME GENERAL SUPPORT PROGRAMME

KOSGEB SMALL AND MEDIUM ENTERPRISE DEVELOPMENT ORGANIZATION SME SUPPORT CREDIT EMPLOYMENT CREDIT EXPORT CREDIT INFORMATICS CREDIT SUPPORTS PROVIDED UNDER CREDIT PROGRAMMES GENEL KREDI PROGRAMLARI KAPSAMINDA SAĞLANAN DESTEKLER EQUIPMENT SECTOR AND EQUIPMENT CREDIT MANUFACTURER ARTISAN BUSINESS CREDIT EMERGENCY STATE SUPPORT CREDIT ENTERPRISES SUPPORT CREDIT

KOSGEB SMALL AND MEDIUM ENTERPRISE DEVELOPMENT ORGANIZATION STRATEGIES OF CREDIT SUPPORT SYSTEMS OF KOSGEB THE BUDGET SOURCES OF KOSGEB HAS BEEN ALLOCATED TO REAL SECTOR INTERMEDIARY STATE-OWNED BANKS COVER THE RİSK BANKS PROVIDES CREDIT KOSGEB COVERS INTEREST EXPENSE (mostly zero interest rate) THE LESS PAPER WORKS VIA WEB-BASED ON-LINE SYSTEM EASY/QUICK APPLICATION FOR SMES ON-LINE IMPLEMENTING & MONITORING

KOSGEB SMALL AND MEDIUM ENTERPRISE DEVELOPMENT ORGANIZATION SME DATABASE NUMBER OF ENTERPRISES REGISTERED SME DATABASE SUPPORT MODEL SYSTEM BASED ON DEMAND 4000 1990-2002 10.000 SME ANALYSIS 2003-2004 SCANNING + STRATEGIC ROAD MAP + CREDIT SUPPORTS 2005-2008 10.000 123.800 Enterprises, entrepreneur, operating organization, career organizations and sectoral organizations that want to benefit from the KOSGEB supports, have to be registered in the KOSGEB database. SCANNING + STRATEGIC ROAD MAP + CREDIT SUPPORTS + SERVICE SECTOR 52.000 490.000 2011-

KOSGEB SMALL AND MEDIUM ENTERPRISE DEVELOPMENT ORGANIZATION KOSGEB SUPPORTS (2003- 2010) 260.000 SMEs 600 MILLION $ SUPPORT 6,4 BILLION $ ALLOCATED CREDIT VOLUME 3 BILLION $ EXPORT 50.000 EMPLOYMENT

KOSGEB SMALL AND MEDIUM ENTERPRISE DEVELOPMENT ORGANIZATION CREATED VALUE ADDED THROUGH KOSGEB TECHNOLOGY SUPPORTS (1992-2009) NUMBER OF APPLICANT PROJECTS 3.311 NUMBER OF PROJECTS SUPPORTED 1800 NUMBER OF PROJECTS COMPLETED 1.174 COMPLETED PROJECT RATE (%) 65.22 NUMBER OF INDUSTRIALIZED PROJECTS 853 INDUSTRIALIZATION RATE (%) %73 NUMBER OF EXISTENT WORKSHOPS 195 WORKSHOP OCCUPANCY RATE %72,31

KOSGEB SMALL AND MEDIUM ENTERPRISE DEVELOPMENT ORGANIZATION NEW SUPPORTED ENTREPRENEUR 660 QUALIFIED EMPLOYMENT 15093 PATENT/ UTILITY MODEL 312 SMEs MOVED TO TECHNOPARKS 104 REALIZED SALE AMOUNT 569.691.86 $ REALIZED EXPORT AMOUNT 112.914.77 $

KOSGEB SMALL AND MEDIUM ENTERPRISE DEVELOPMENT ORGANIZATION SECTORAL DISTRIBUTION OF PROJECTS SUPPORTED IN TEKMERs

KOSGEB SMALL AND MEDIUM ENTERPRISE DEVELOPMENT ORGANIZATION ACTIVITIES IN INTERNATIONAL RELATIONS

KOSGEB SMALL AND MEDIUM ENTERPRISE DEVELOPMENT ORGANIZATION “RELATED DEPARTMENT” IN 3 CAPTIONS WITHIN TURKEY- EU MEMBERSHIP NEGOTIATIONS ESPECIALLY UNDER THE CAPTION OF “ENTERPRISES AND INDUSTRY” COORDINATION OF “SME STRATEGY AND ACTION PLAN” WHICH CAPTION IS TURKEY’S TASK; “ENTERPRISES AND INDUSTRY” MANAGEMENT OF NATIONAL COORDINATION OF “ENTERPRISE EUROPE NETWORK” WHICH IS A PROJECT UNDER COMPETITIVENESS AND INNOVATION PROGRAMME (CIP) NATIONAL CONTACT POINT OF THE PROJECT CIP “EUROPE SME WEEK” INTERNAL AND EXTERNAL INFORMATIVE ACTIVITIES REGARDING TO 7. FRAMEWORK, MATRA, IPA AND LEONARDO PROGRAMMES

KOSGEB SMALL AND MEDIUM ENTERPRISE DEVELOPMENT ORGANIZATION PARTICIPATION TO THE ALL SME ACTIVITIES IN MULTILATERAL ORGANIZATIONS EXCEPT EU ON BEHALF ON OUR COUNTRY OECD SME WORKING GROUP BSEC SME WORKING GROUP ECO SME ORIENTATION COMMITTEE OIC SME TASK FORCE (MEETINGS ENDED) MANAGEMENT OF BILATERAL RELATIONS WITH EQUIVALENT ORGANIZATIONS YOIKK (THE COORDINATION COUNCIL FOR THE IMPROVEMENT OF INVESTMENT ENVIRONMENT) SME TECHNICAL COMMITTEE SECRETERIAT ACTIVITIES PARTICIPATION TO THE PROJECTS AND PROVIDING INFORMATIVE ACTIVITIES REGARDING TO SMES ON THE ENVIRONMENT AND CLIMATE ISSUES TO ARRANGE PROGRAMMES TO FOREIGN PROFESSIONALS AND SHARING EXPERIENCES ABOUT TURKEY SME SUPPORT AND ENTREPRENEURSHIP

KOSGEB SMALL AND MEDIUM ENTERPRISE DEVELOPMENT ORGANIZATION BILATERAL ACTIVITIES WITH COUNTRIES INFORMING EACH OTHER ABOUT FAIRS AND EXHIBITIONS ORGANIZED IN THEIR COUNTRIES AND SUPPORT THE PARTICIPATION OF SMES WITHIN THE FRAMEWORK OF INCENTIVES SHARING INFORMATION AND EXPERIENCE ON SMES EFFORTS TO IMPROVE THE INSTITUTIONAL INFRASTRUCTURE AND SUPPORT MECHANISMS FOR SMES PROVIDING REQUIRED INFORMATION TO SME'S ON TECHNOLOGY, INNOVATION COOPERATION ON TRAINING OF SMES DEVELOPING MECHANISMS TO INFORM EACH OTHER ON TRADE OPPORTUNITIES AND EVENTS REGARDING SMES ORGANISING BUSINESS TRIPS. EFFORTS TO IMPLEMENT MATCHING CENTER MODEL

KOSGEB SMALL AND MEDIUM ENTERPRISE DEVELOPMENT ORGANIZATION INTERNATIONAL PROJECTS AND ACTIVITIES STUDIES REALIZED DURING EU INTEGRATION PROCESS EU COMPETITIVENESS AND INNOVATION PROGRAMME (CIP) FOR THE PURPOSE OF; PROVIDING INFORMATION ABOUT EU ISSUES, FEEDBACK FROM ENTERPRISES THROUGH EUROPEAN COMMISSION, CONSULTING SERVICES FOR THE NEEDS OF ENTERPRISES, BUSINESS COOPERATION AND FORMING DATABASE, PROVIDING SERVICES BY TRANSFERRING INFORMATION AND TECHNOLOGY ABOUT INNOVATION KOSGEB INVOLVED IN 100 EUROPEAN ENTERPRISE NETWORK BY COMPOSING OF 7 TURKISH EEN CONSORSIUMS WITH BUSINESS REPRESENTATIVES AND UNIVERSITIES IN 2009. 51

KOSGEB SMALL AND MEDIUM ENTERPRISE DEVELOPMENT ORGANIZATION EU/IPA REGIONAL COMPETITIVENESS OPERATIONAL PROGRAMME (2009-2013) I. PROJECT PACK: IN 3 CITIES IT IS GOING TO BE BUILT BUSINESS DEVELOPMENT CENTERS AND A NETWORK WILL BE CREATED BETWEEN BUSINESS DEVELOPMENT CENTERS IN TURKEY. 2. PROJECT PACK : FOR PROVIDING EDUCATION AND CONSULTING SERVICE REGARDING TO THE PRODUCTION DESIGN, DEVELOPMENT AND IMPROVEMENT NEEDS OF SMEs AND ENTREPRENEURSHIPS AT THE REGION. GAZIANTEP REGIONAL, INDUSTRIAL DESIGN AND MODELLING CENTER (GETAM) WILL BE BUILT. MARAŞ PEPPER (KNOWN AS RED PEPPER) BUSINESS CLUSTER WILL BE CREATED TO INCREASE ITS COMPETITIVENESS IN INTERNATIONAL MARKET. 3. PROJECT PACK : FOR CREATING PROCUREMENT OF CAPITAL FUNDS INCLUDING RISK CAPITAL FUNDS LIKE CREDIT GUARANTEE FUNDS, MICRO CREDIT FUNDS, START- UP CAPITAL AND OTHER FINANCIAL INSTRUMENTS IT IS GOING TO BE BUILT SOUTHEAST ANATOLIA SME RISK CAPITAL FUND. 52

KOSGEB SMALL AND MEDIUM ENTERPRISE DEVELOPMENT ORGANIZATION NETHERLANDS, MATRA PRE-ACCESSION PROJECTS PROGRAMME KOSGEB HAS JOINED AS SHAREHOLDER TO THE MATRA PROJECT REGARDING TO BUILD REGIONAL INDUSTRY HELP DESKS WHERE THE SECTOR IS CONSISTENT AND TO INCREASE AWARENESS REGARDING TO OUR EXPORTERS ABOUT CLASSIFICATION, LABELLING AND PACKAGING OF HAZARDOUS SUBSTANCES AND MIXES REGULATIONS AND NEW EU CHEMICALS POLICY OF UNDERSECRETERIAT OF FOREIGN TRADE. EU/ TURKEY RESEARCH AND BUSINESS WORLD ORGANIZATIONS STATE-PRIVATE COOPERATION (Turbo) (1993): THE FOUNDATION WHICH WAS BUILT BY KOSGEB WITH STATE AND BUSINESS WORLD ORGANIZATIONS (TUBITAK, TOBB,TESK) AND WHICH HAS AN OFFICE IN BRUSSEL HAS BEEN SUPPORTED FOR THE SHARE HOLDERS’ STUDIES UNDER EU HARMONISATION PROCESS 53

KOSGEB SMALL AND MEDIUM ENTERPRISE DEVELOPMENT ORGANIZATION EU- SMALL BUSINESS ACT (2008) AN AMBITIOUS NEW POLICY TOWARDS SMES IN THE GLOBAL CRISIS CONSIDERS THE SMALL BUSINESS AS A KEY ELEMENT FOR EUROPEAN ECONOMY IMPROVES THE OVERALL POLICY APPROACH TO ENTREPRENEURSHIP STRENGTHENS POTENTIAL TO CREATE JOBS IN THE EU INCLUDES A PACKAGE OF TOOLS (Pave the way for a better regulatory environment for SMEs) SUPPORTED AND MONITORED OFFICIALLY BY THE EU ITSELF 54

KOSGEB SMALL AND MEDIUM ENTERPRISE DEVELOPMENT ORGANIZATION KOSGEB’S ROLE AS A CANDIDATE COUNTRY TOWARDS FULL ACCESSION; TURKEY SHOULD ALIGN ITS IMPLEMENTATIONS AND SHARE ITS EXPERIENCES WITH THE EU KOSGEB, WHICH IS THE UNIQUE ORGANIZATION PROVIDING SERVİCES TO SMES AND ENTREPRENEURS; MANAGE THE WHOLE SBA PROCESS EXCHANGE THE GOOD PRACTICES WITH THE EU. 55

KOSGEB SMALL AND MEDIUM ENTERPRISE DEVELOPMENT ORGANIZATION COMPLETED PROJECTS WITHIN THE CONTEXT OF EU, WORLDBANK SHOEMAKING TRAINING INSTITUTE PROJECT EU MEDA KOSGEB VOCATIONAL TRAINING IN THE CLOTHING SECTOR IN TURKEY PROJECT ENVIRONMENTAL STANDARDS IN TEXTILE SECTOR IN TURKEY PROJECT SUPPORT FOR THE CREATION OF AN INDUSTRY ZONE FOR SMALL SUBCONTRACTORS IN AUTOMOBILE SECTOR IN TURKEY (TAYSAD-TOSB-GEBZE) PROJECT KOBINET-EU ONLINE PROJECT FASHION NET PROJECT FASHION TO FUTURE PROJECT EU INNOVATION TRANSFER PROJECT COMPLIANCE PROJECT TO THE EU ENVIRONMENT ACQUIS FOR THE TURKISH SMEs SUPPORTING FEMALE ENTREPRENEURSHIP PROJECT 56

KOSGEB SMALL AND MEDIUM ENTERPRISE DEVELOPMENT ORGANIZATION EU-KOSGEB SHOE MAKING TRAINING INSTITUTE PROJECT (2007) AIM: TO INCREASE THE QUALIFICATIONS AND SKILLS OF WORKERS EMPLOYED BY SMES IN THE SHOE MAKING SECTOR AND TO ASSIST SHOEMAKERS TO IMPROVE THE QUALITY OF THEIR PRODUCTS. OUTCOMES: A TRAINING CENTER WAS ESTABLISHED TOTALLY 353 PEOPLE HAVE BEEN TRAINED 88 PEOPLE WERE EMPLOYED IN THE SECTOR. IT’S BEEN REALIZED 703 TESTS FOR 68 COMPANIES. ------------------------------------------------------------------------------------------------------- EU MEDA KOSGEB VOCATIONAL TRAINING IN THE CLOTHING SECTOR IN TURKEY PROJECT (2005) TO STRENGTH THE CLOTHING SECTOR BY IMPROVING THE QUALIFICATION LEVEL OF EMPLOYEES AND QUALITY LEVEL OF PRODUCTS. 3 TRAINING CENTERS WAS ESTABLISHED 2 QUALITY CONTROL LABORATORY WHICH COULD MAKE 46 DIFFERENT CHEMICAL AND PHYSICAL TESTS WAS ESTABLISHED AND ACCREDITED. 165 LOCAL TRAINERS WERE TRAINED BY EU EXPERTS. 14,876 PEOPLE HAVE BEEN TRAINED 2364 PEOPLE WERE EMPLOYED IN THE SECTOR. 57

KOSGEB SMALL AND MEDIUM ENTERPRISE DEVELOPMENT ORGANIZATION EU-ENVIRONMENTAL STANDARDS IN TEXTILE SECTOR IN TURKEY PROJECT (2006) AIM: TO MAKE THE TURKISH TEXTILE INDUSTRY CONFORM TO THE INTERNATIONAL ENVIRONMENTAL STANDARDS. OUTCOMES: A LABORATORY WAS ESTABLISHED AND ACREDITED ON 44 DIFFERENT TYPES TESTS AND ANALYSIS A TOTAL OF 849 TESTS HAVE BEEN CONDUCTED. ------------------------------------------------------------------------------------------------ EU-KOBINET EU ONLINE PROJECT (2004) TO CREATE A SYNERGY BY INTEGRATING GOVERNMENT’S E-COMMERCE AND E-TURKEY STRATEGIES USING INFORMATION SYSTEMS INSTRUMENTS AND AIMS SMES TO DEVELOP IN COMPETITIVENESS AND INNOVATION. 56 INTERNET COFFEES HAS ESTABLISHED TO FACILITATE THE PROCESS OF KOBINET MEMBERSHIP AND TO INCREASE ITS USE BY SMES. KOBINET SERVERS PROVIDE 24 HOURS SERVICE THROUGH TR- NET, WHICH UNDERTAKE HOSTING AND MAINTENANCE SERVICES. TOTALLY 23.044 COMPANIES ARE REGISTERED TO KOBINET DATABASE, AND 90 OF THEM ARE FOREIGN COMPANIES. 58

KOSGEB SMALL AND MEDIUM ENTERPRISE DEVELOPMENT ORGANIZATION EU-SUPPORT FOR THE CREATION OF AN INDUSTRY ZONE FOR SMALL SUBCONTRACTORS IN AUTOMOBILE SECTOR IN TURKEY (TAYSAD-TOSB-GEBZE) PROJECT (2004) AIM: TO ENHANCE THE EXPORT AND TOTAL SALES POTENTIAL OF THE TURKISH AUTOMOTIVE SUPPLY INDUSTRY CARRIED OR TO BE CARRIED TO THE TAYSAD ORGANIZED INDUSTRY ZONE, BY DOING A COMPREHENSIVE MARKET RESEARCH, TO CONDUCT FEASIBILITY STUDIES FOR THE TECHNOLOGY INNOVATION STUDIES,, TO PREPARE AND CARRY OUT BUSINESS PLANS FOR THE FIRMS IN THE SECTOR, AND PROVIDE TRAININGS OUTCOMES: “BUSINESS TRIP TO TURKEY BY GERMAN BUSINESSMEN” ACTIVITY WAS ORGANIZED 110 ENTERPRISES THAT ARE MEMBERS OF TAYSAD WERE CONSUCTED A QUESTIONNAIRE TO DETERMINE THE SECTOR PROBLEMS AND DEMANDS, THE RESULTS WERE COLLECTED, 815 PEOPLE IN 63 FIRMS HAVE BEEN PROVIDED TRAINING STUDY TOURS TO ITALY AND GERMANY HAVE BEEN ORGANIZED. A TOTAL OF 10 COMPANIES WERE PROVIDED “BUSINESS PLAN” CONSULTANCY 59

KOSGEB SMALL AND MEDIUM ENTERPRISE DEVELOPMENT ORGANIZATION EU-FASHION NET PROJECT (2006) AIM: TO FACILITATE THE ACCESS OF SMES IN THE FASHION SECTOR TO INNOVATIVE PROCESSES, AND BRING THEM CLOSER TO TECHNOLOGY AND RESEARCH. OUTCOMES: TWO INNOVATION WORKSHOPS WERE ORGANIZED ,94 SMES WERE INFORMED 6TH FRAMEWORK PROGRAMME TRAININGS WERE ORGANIZED IN 2 CITIES. 97 SMES ATTENDED THESE TRAININGS. AFTER THE TRAININGS, 15 PROJECT PROPOSALS WERE PREPARED BY THE SMES AND 2 OF THEM WERE PUBLISHED ON THE CORDIS WEBSITE. TWINNING SEMINAR HELD WHERE TURKISH AND SPANISH SMES COULD DISCUSS BUSINESS OPPORTUNITIES. --------------------------------------------------------------------------------------------------- EU-FASHION TO FUTURE PROJECT (2008) AIM : TO COLLECT NEW INPUTS (FOR INSTANCE, ADDING UNIVERSITIES DEPARTMENT AND RESEARCHERS AND THIRD COUNTRIES INSTITUTIONS AND EXPERTS) AND TO STIMULATE COMPETITIVENESS OF SMES PART OF THE ENLARGED EU- MED FASHION SYSTEM. KOSGEB CONTRIBUTED WITH 4 STORIES TO THE FP6 SUCCESS STORY COLLECTIONS. 2 IDEA GENERATION EVENTS FOR TEXTILE AND SHOE SECTORS WERE REALIZED. 7TH FRAMEWORK PROGRAMME SEMINAR WAS REALIZED FOR THE SAME SECTOR IT WAS COLLECTED TOTALLY 565 DATA AND DATA ANALYSIS WAS MADE. 60

KOSGEB SMALL AND MEDIUM ENTERPRISE DEVELOPMENT ORGANIZATION EU-SME MULTU ANNUAL PROGRAMME – EUROPEAN INFORMATION CENTERS PROJECT (2007) AIM: SPREADING OF EUROPEAN INFORMATION CENTERS WHICH IS AN INFORMATION NET OF EU FOR SMES. OUTCOMES: 490 EVENTS WERE HELD IN THE 8 EUROPEAN INFORMATION CENTERS TO MORE THAN 35.000 PARTICIPANTS IT’S BEEN ANSWERED MORE THAN 25.000 INFORMATION DEMANDS. ------------------------------------------------------------------------------------------------------ EU FINANCIAL AID 2005 PROGRAMME – SUPPORTING FEMALE ENTREPRENEURSHIP PROJECT (2008) TO HELP FEMALE ENTREPRENEURS WITHIN BUSINESS CREATING PROCESS AND TO SUPPORT ENTERPRISES FOR ITS FIRST YEARS. BUSINESS INCUBATORS WERE ESTABLISHED IN 4 CITIES WHERE FEMALE ENTREPRENEURS INVOLVED IN 56 ENTERPRISES BENEFITED FROM THESE INCUBATORS ( LOCATION ASSURANCE, COMMON EQUIPMENT USAGE, SECRETARY SERVICES, ENTERPRISE DEVELOPMENT EDUCATION AND CONSULTING ETC. ) 61

KOSGEB SMALL AND MEDIUM ENTERPRISE DEVELOPMENT ORGANIZATION EU- ESTABLISHMENT OF AN INFORMATION SYSTEM FOR TURKISH SMES ON EU ENVIRONMENTAL APPROXIMATION (2006)   AIM: TO PROVIDE THE INFORMATION AND DATA IN ELECTRONIC FORMAT AND THROUGH SEARCH ENGINE ANALYSED FOR INDUSTRIALISTS IN ORDER TO FACILITATE AND ACCELERATE THE IMPLEMENTATION OF ENVIRONMENTAL LEGISLATION BY GENERALIZING THE ASSISTANCE ON ENVIRONMENTAL MANAGEMENT AND LEGISLATION FOR SMES. OUTCOMES: A WEB ADDRESS AS “CEVRE.KOSGEB.GOV.TR” IS ESTABLISHED AND OUR SMES STILL BENEFIT FROM THE PORTAL. ------------------------------------------------------------------------------------------------ WORLD BANK- ESTABLISHMENT OF BUSINESS INCUBATORS AND SMALL SIZED BUSINESS CREATION CONSULTING SUPPORT (2009) TO HELP UNEMPLOYEES TO BUILD UP A SMALL SIZED BUSINESS BY DEVELOPING THEIR BUSINESS PLANS, FINDING AN OFFICE AND ITS SUCCESSFULLY SUSTAINABILITY. 438 NEW ENTERPRISES WERE ESTABLISHED BY BUILDING UP BUSINESS INCUBATORS IN 12 CITIES. (%30 OF THEM ARE FEMALE ENTREPRENEURS) EDUCATION AND CONSULTING SERVICE WERE PROVIDED TO 4900 PARTICIPANTS WITH 53 PROGRAMMES. 62

KOSGEB SMALL AND MEDIUM ENTERPRISE DEVELOPMENT ORGANIZATION EU- ESTABLISHMENT AND IMPLEMENTATION OF ECO-MANAGEMENT AND AUDIT SCHEME (EMAS ) IN TURKEY (2009) AIM: TO ESTABLISH THE BASIS FOR EMAS IMPLEMENTATİON IN TURKEY AS COMPLİANCE WİTH THE EU-ACQUİS. OUTCOMES: CURRENT SITUATION HAS ANALYSED STRATEGY AND IMPLEMENTATION PLAN FOR EMAS HAS PREPARED AWERANESS TRAININGS FOR TURKİSH STAKEHOLDERS HAS REALIZED ----------------------------------------------------------------------------------------------- EU- ECO-INDUSTRIAL PARK ENVIRONMENTAL SUPPORT SYSTEM (EPESUS) PROJECT (2010) TO SERVE SMES WITHIN AN INDUSTRIAL PARK, IN IMPROVING THEIR ENVIRONMENTAL REQUIREMENTS, MANAGING THEIR RESOURCE USE AND WASTE TREATMENT AND IMPROVING THEIR ENERGY EFFICIENCY. ANALYTICAL ANALYSIS OF POTENTIAL OF ENERGY SAVING WILL BE DONE SISTEM PROPOSALS FOR ENVIRONMENTAL FRIENDLY BUILDINGS WILL BE PREPARED DATA BASES DETERMINING ENVIRONMENTAL EFFECTS ON MATERIAL AND WASTE WILL BE CONSTITUTED 63

KOSGEB SMALL AND MEDIUM ENTERPRISE DEVELOPMENT ORGANIZATION BUSINESS MATCHING MODEL AIM TO DEVELOP INTERNATIONAL RELATIONSHIPS BETWEEN SMEs TO ELIMINATE ADMINISTRATIVE DIFFICULTIES TO DEVELOP STRONG RELATIONSHIPS WITH THE HELP OF A FORMAL PLATFORM BASIC SERVICES SHARING INFORMATION ABOUT FAIRS, COUNTRY REPORTS ETC. TO DETERMINE POTENTIAL PARTNERS CONSULTING SERVICES ON BANK/INSURANCE/ SECURITY ISSUES ORGANIZATIONAL SERVICES LIKE RENTING THE HALLS AGREEMENT CONTROL/ PREPARING AN AGREEMENT, DOMESTIC LEGISLATION STUDIES FEASIBILITY STUDIES OPERATION OF DATABASE The Business Matching Model iIs SME-oriented and aware of the capabilities and problems of SMEs. SMEs have difficulty in finding a partner in the foreign country. Also they need to employ experts for issues like foreign trade, law, insurance, etc. They can not do planning properly and follow a correct foreign trade management.

KOSGEB SMALL AND MEDIUM ENTERPRISE DEVELOPMENT ORGANIZATION STRUCTURE OF BMM KOSGEB KOSGEB’S COUNTERPART Business Matching Agreement Business Matching Agreement Approval Approval BUSINESS MATCHING CENTER OPERATOR (BMCO) This Schema shows the components of Business Matching Model. KOSGEB and its counterpart in the foreign country sign a protocol to facilitate the establishment of BMM ad proper implementation of BMM. A third organisation called as Business Matching Center Operator act as a binding component between SMEs of the two countries.The BMCO which has approval of both KOSGEB and its counterpart realize the basic services and manage the database of SMEs. The activities is carried by an application software. The sofware is supplied by KOSGEB. The software is accessible via internet. KOSGEB units prepare Market Survey Reports (UPAR) on the target country. These reports cover Sectors Analysis and SWOT Analysis on that country .These reports assist Business Matching. DATABASE of selected SMEs of both countries

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