Turkish SMEs boost global supply chain integration: OECD

The Organization for Economic Co-operation and Development said in a new report that Turkish small- and medium-sized enterprises are deepening their integration into global value chains and strengthening supply ties with multinational corporations. SMEs in Türkiye account for 68.5% of employment and generate 41.2% of the country's total value added, according to the report, as accelerating digital and green transformations reshape the operational landscape alongside rising geopolitical uncertainty.

Strategic manufacturing hub

The report showed that Türkiye has emerged as a major exporter and a key hub in regional and global manufacturing networks despite shifting geopolitical dynamics. Ankara reinforced strategic infrastructure to encourage supplier development and match local SMEs with global partners. The initiative aims to link supplier growth with technological advancement, sustainability targets, and foreign investment attraction through digital tracking tools and published reports.

Green financing expansion

The OECD noted that Türkiye’s Green Industry Program allocated $250 million in funding to support eco-friendly investments through 2030, assisting 866 SMEs in its first year and 1,743 enterprises in 2025. A comprehensive campaign raised awareness among more than 8,000 firms regarding green transformation initiatives. The Credit Guarantee Fund launched in May 2025 provided an additional €3.1 billion ($3.5 billion) in guarantees alongside tax breaks and interest subsidies to facilitate access to green financing.

Structural barriers remain

The organization noted that persistent structural challenges continue to limit Türkiye’s ability to fully realize its massive SME potential and convert current momentum into sustained long-term productivity gains. These constraints prevent the sector from achieving a stronger global competitive edge despite its significant contributions to employment and value creation.