In 2023, the Trade Sector Boasted the Highest Share of Employment in SMEs

According to the statement made by the Turkish Statistical Institute (TÜİK), SMEs accounted for 99.7% of the total number of enterprises in 2023. In contrast, they represented 70.5% of employment, 47.9% of personnel costs, 47.4% of turnover, 41.6% of production value, and 40.1% of the factor cost and value added.

SMEs operated mainly in the trade sector. According to the statistical classification of economic activities (NACE Rev.2), in 2023, 36.1% of SMEs operated in the wholesale and retail trade, repair of motor vehicles and motorcycles sector, while 15.2% were in transportation and storage, and 12.3% were in the manufacturing industry.

The highest ratio of employment among SMEs was in the trade sector. In 2023, the share of employment in the wholesale and retail trade, repair of motor vehicles and motorcycles sector within total SME employment was 26.5%, while this ratio was 22.9% for personnel costs, 53.2% for turnover, 24.8% for factor cost and value added, and 15.6% for production value.

The value added per employee in medium-sized enterprises was 615,000 TL in 2023. In 2009, the average value added per employee for SME ventures was 15,000 TL, while it rose to 296,000 TL in 2023. Among SME groups, the highest value added per employee for the years 2009 and 2023 occurred in medium-sized enterprises with 29,000 TL and 615,000 TL, respectively. For small enterprises, these figures were 19,000 TL and 341,000 TL, while for micro enterprises, they were 8,000 TL and 111,000 TL.

Personnel cost per employee in SMEs was 149,000 TL in 2023. In 2009, the average personnel cost per employee for SME ventures was 8,000 TL, which increased to 149,000 TL in 2023. Among SME groups, the highest personnel cost per employee for the years 2009 and 2023 was recorded in medium-sized enterprises at 15,000 TL and 255,000 TL, respectively. For small enterprises, these values were 11,000 TL and 185,000 TL, while for micro enterprises, they were 4,000 TL and 75,000 TL.

3,475 SMEs in the manufacturing industry produced in the high technology class. When classified by technology levels, 55.6% of SMEs in the manufacturing industry operated at a low technology level, while this rate was 43.6% in large enterprises. Examining according to SME size categories, 56.7% of micro enterprises produced in the low technology class, 31.9% in the medium-low technology, 10.7% in the medium-high technology, and 0.7% in the high technology class. In contrast, the ratios for small enterprises were 50.3%, 30.9%, 17.7%, and 1.1%, respectively, while in medium-sized enterprises they were 49.6%, 29.8%, 19.1%, and 1.5%.

In 2023, the birth rate of SMEs was 15.3%. The ratio of newly established SMEs in 2022 to the total number of active SMEs in 2022 (enterprise birth rate) was 16.2%. The share of employment in newly established SMEs in 2022 in total employment of active SMEs was 7.5%, while in 2023 these rates were 15.3% for enterprise birth rate and 6.9% for employment share. In 2023, the highest birth rate among SMEs was 16.3% for micro enterprises, followed by 5.4% for small enterprises and 3.8% for medium-sized enterprises. Similarly, in the share of employment among newly established enterprises, the highest was 11.7% for micro enterprises, followed by 3.0% for small enterprises and 2.0% for medium-sized enterprises.

SMEs accounted for 35.0% of total exports. In 2023, 35.0% of total exports and 20.0% of imports were conducted by SMEs. In total exports for 2023, the share of micro enterprises was 3.4%, the share of small enterprises was 13.2%, and the share of medium-sized enterprises was 18.4%. The share of large enterprises was 65.0%.

Of the total exports by SMEs, 58.1% occurred in the trade sector, while 36.7% occurred in the industrial sector.

The share of SMEs in imports was 20.0%. In total imports for 2023, the share of micro enterprises was 1.4%, small enterprises was 7.2%, and medium-sized enterprises was 11.3%. The share of large enterprises was 80.0%.

In 2023, the export value of SMEs increased from 57 billion dollars in 2013 to 87 billion dollars, while the import value rose from 48 billion dollars in 2013 to 68 billion dollars in 2023.

49.3% of the total exports by SMEs were made to European countries. In 2023, 49.3% of SME exports were to European countries, and 33.4% were to Asian countries. SMEs sourced 48.2% of their imports from European countries and 42.6% from Asian countries.

91.1% of SME exports consisted of manufactured goods. In 2023, other unclassified machinery and equipment accounted for 11.5% of SME exports, clothing sector for 10.9%, while textiles and food products accounted for 7.5%. In the 2023 imports of SMEs, the prominent products were basic metals at 26.2%, other unclassified machinery and equipment at 14.0%, and chemicals and chemical products at 12.5%.

SMEs accounted for 30.0% of R&D expenditures. Of the total gross domestic R&D expenditures by financial and non-financial companies in 2023, SMEs accounted for 72 billion 763 million TL, which constitutes 30.0% of R&D expenditures by financial and non-financial companies. A total of 186,993 individuals worked in R&D as full-time equivalents (FTE) in financial and non-financial companies, with 46.3% of that personnel employed within SMEs.

445 patents were registered by SMEs. In 2023, the total number of patent applications by SMEs was 1,503, and 445 patents were registered in the same year. Among SME scales, medium-sized enterprises ranked first with 582 patent applications and 180 patent registrations.

In our country, enterprises employing fewer than 250 employees annually and having a net sales revenue or a balance sheet not exceeding 500 million Turkish Liras are defined as Small and Medium-sized Enterprises (SMEs) under relevant legislation. The press release includes statistics related to the Annual Industry and Service Statistics Research conducted by the Turkish Statistical Institute, such as the number of enterprises, number of employees, turnover, technology usage, as well as Foreign Trade Statistics, Entrepreneurship and Business Demography Statistics, Research and Development Activities Research, and patent application and registration statistics from the Turkish Patent and Trademark Office.