World Bank, IFC highlight Türkiye's SME strength, financing gaps
World Bank and IFC officials said Türkiye's small and medium enterprises form the backbone of the national economy while accounting for over two-thirds of total employment, urging Ankara to implement comprehensive reforms that close persistent financing gaps and accelerate digital transformation for sustainable growth.
Economic backbone
World Bank Türkiye Country Director Humberto Lopez said small and medium enterprises constitute the backbone of Türkiye's economy, providing roughly 70% of total employment and requiring coordinated public-private action to unlock their full potential. Speaking to Anadolu on the occasion of UN Micro-, Small, and Medium-Sized Enterprises Day, Lopez noted that empowering SMEs represents both an economic and social priority demanding simultaneous reforms across institutions, guarantee mechanisms, and crisis response frameworks.
The UN established MSMEs Day in 2017 to recognize that small businesses comprise 90% of global companies, generate approximately 70% of worldwide employment, and contribute half of global GDP. Lopez stated that the World Bank leverages public sector tools to shape policy while the International Finance Corporation deploys private sector instruments to bolster investments and capital markets, adding that this combined approach proves essential for supporting a large and dynamic economy such as Türkiye's.
Financing gaps and resilience
Lopez noted that World Bank-backed initiatives between 2020 and 2023 injected financing into more than 87,000 MSMEs across Türkiye, preserving or creating approximately 115,000 jobs during the COVID-19 pandemic and following the February 2023 earthquakes in the nation's southeast. He stated that 77% of new hires were workers under 30 and 61% were women, adding that approximately 40,000 MSMEs in disaster-stricken zones received $450 million in post-earthquake project financing as businesses grappled with physical damage alongside disrupted supply chains.
Digital transformation
IFC Division Director Lisa Kaestner emphasized that SMEs account for over two-thirds of employment in Türkiye yet receive less than 27% of total bank loans, noting that the IFC provided a $350 million recovery package through five private banks to benefit 55,000 MSMEs in the earthquake-hit southeast. She stated that the next priorities involve mobilizing private capital through leasing firms and private equity, adding that closing the women's employment gap—which stands at 37%—could potentially drive a 25% increase in GDP, while Lopez urged SME owners to embrace digitalization and move toward higher value-added production.
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