Supports provided for young entrepreneurs include various programs and resources aimed at assisting them on their entrepreneurial journey. These supports typically encompass financial, educational, and mentoring elements.
- What are the Criteria for Young Entrepreneur Support?
There are several advantages to being a young entrepreneur in Turkey, and government incentives lead this category. To benefit from Young Entrepreneur Support, the following conditions are required:
Age Limit: Entrepreneurs must be over 18 years old and not have reached 29 years old to be eligible for the support.
Income Tax Exemption: Those included in the young entrepreneur exemption under Article 20 of the Income Tax Law can benefit from the support.
Bağkur (Social Security) Insurance: Entrepreneurs who have become insured under Bağkur for the first time after June 1, 2018, can benefit from the support.
Tax Registration: Young entrepreneurs who have registered as taxpayers for the first time due to commercial or freelance activities can benefit from the support.
Company Establishment: Young entrepreneurs who have established a general partnership or a sole proprietorship can also benefit from the support.
Young entrepreneurs who meet these criteria receive Bağkur premium support for 12 months. This support aims to facilitate the payment of social security premiums for young entrepreneurs. Applications for the support should be made according to the specified period and methods determined by the relevant institutions. It is crucial to complete this stage without any omissions as it may have a significant impact on the process. For any problems during this stage, our consultancy firm is just a phone call away.
- Government Supports
In Turkey, various institutions and programs provide government support to young entrepreneurs. Here are some government support programs for young entrepreneurs:
Small and Medium Enterprises Development Organization (KOSGEB) Young Entrepreneur Support: KOSGEB offers several programs that provide financial support to young entrepreneurs. These supports include grants, interest-free loans, training, and consultancy services. Young entrepreneurs can benefit from these supports by applying to KOSGEB with a business plan and fulfilling other requirements.
Rural Development Support Institution Young Farmer Project: It provides support to young entrepreneurs in the field of agriculture and rural development. Young farmers can receive grants or grant credit support. With these supports, young entrepreneurs can establish new agricultural businesses, modernize existing ones, or improve their current enterprises.
Credit Guarantee Fund: The Credit Guarantee Fund provides collateral for young entrepreneurs to help them meet their financing needs for their businesses. With KGF guarantee, young entrepreneurs can obtain loans from banks under more favorable conditions.
Young Entrepreneur Exemption: According to Article 20 of the Income Tax Law, young entrepreneurs can benefit from a certain percentage of income tax exemption. This exemption aims to reduce the tax burden on young entrepreneurs and support the development of their businesses.
Support Programs for Youth: Some ministries offer special programs to encourage young entrepreneurs. For example, the Ministry of Agriculture and Forestry, Ministry of Industry and Technology, Ministry of Development, and other institutions provide sector-specific support for young entrepreneurs.
To apply for these support programs, young entrepreneurs must meet specific criteria. Each program has its own requirements and application processes.
- Credit Supports
In Turkey, various institutions and programs offer credit support for young entrepreneurs. Here are some credit supports specifically designed for them:
KOSGEB Young Entrepreneur Credit: The Small and Medium Enterprises Development Organization (KOSGEB) provides interest-free or low-interest loans to young entrepreneurs. KOSGEB evaluates applications within the scope of young entrepreneur support programs and grants credit to eligible entrepreneurs.
Credit Guarantee Fund (KGF) Loans: The Credit Guarantee Fund provides guarantees for young entrepreneurs to obtain loans from banks. With KGF guarantees, young entrepreneurs can access credit from banks under more favorable conditions and with lower collateral requirements.
Agriculture and Rural Development Support Institution (TKDK) Loans: TKDK offers grant and credit opportunities for young entrepreneurs operating in agriculture and rural development. Young entrepreneurs can benefit from TKDK’s support to establish, modernize, or develop agricultural enterprises.
Young Farmer Projects: As part of the projects conducted by the Ministry of Agriculture and Forestry, young farmers receive low-interest loans. These loans aim to increase agricultural production and support young farmers in establishing their businesses.
- EU Supports for Entrepreneurs
In Turkey, there are various projects funded by the EU for young entrepreneurs, which greatly contribute to their entry into the market from the perspective of developed countries.
Horizon 2020: Horizon 2020 is the EU’s research and innovation program. Within this program, young entrepreneurs can receive grants and financial support to develop their innovative ideas. Horizon 2020 provides funding for R&D activities and offers collaboration opportunities for young entrepreneurs.
COSME: COSME is the EU’s program for small and medium-sized enterprises (SMEs). Young entrepreneurs can benefit from financial support, training, consultancy services, and collaboration opportunities through the COSME program. COSME aims to assist young entrepreneurs in expanding their businesses and entering international markets.
Erasmus+ for Young Entrepreneurs Program: The Erasmus+ for Young Entrepreneurs Program offers young entrepreneurs the opportunity to gain experience and establish new business connections in another EU country. The program allows young entrepreneurs to develop their international business networks and experience different cultures.
EIT Innovative Entrepreneurship Program: The European Institute of Innovation and Technology (EIT) provides support to young entrepreneurs in implementing their innovative business ideas. The program offers education, funding, and mentoring services to help young entrepreneurs grow their businesses and create innovation-focused business models.
These programs and support are offered by the EU to empower young entrepreneurs to enhance their businesses, establish international collaborations, and promote innovation. Young entrepreneurs can find more information and follow the application processes on the respective websites of these programs.