MSME Development & Finance

We engage in collaborative efforts with financial institutions in developing and refining focused and innovative programs to ensure the financial inclusion of micro, small and medium-sized enterprises (MSMEs). Our work involves the establishment and operationalization of MSME finance departments with a sound strategy as a sustainable business segment. We also support the development of internal MSME lending mechanisms, risk management tools, procedures, business models, and delivery mechanisms in line with the corporate strategy. We build comprehensive data management tools, scoring and monitoring mechanisms at financial institutions for MSME lending. We foster capacity building through tailored training, on-the-job coaching and strategy development.

Since the inception of our journey in 2003, Frankfurt School Turcasia has been at the forefront of various MSME-focused technical assistance programs in the region. From 2010 to 2017, we imparted knowledge through our training services to over 3000 banking professionals, enriching their expertise in diverse domains such as MSME lending, agricultural lending, women-led SME finance and so on. Our work not only targets finance professionals but also the MSMEs – we implement programs to enhance the financial, digital and business skills of MSMEs and entrepreneurs to ensure sustainable growth in developing markets. Lastly, we establish policy dialogue with governments and civil society for the elaboration of focused programs for the improvement of entrepreneurship ecosystems for innovation and sustainability.

Donor: USAID & EU & EBRD

Beneficiary: MSMEs, farmers and partner banks

Year: November 2010 – May 2017

The Programme's overall objective was to support partner banks to launch and/or accelerate MSME lending to the least economically developed regions of Türkiye, thus increasing access to finance for Turkish MSME borrowers. The Programme specifically targeted MSMEs, farmers, and agribusinesses from rural parts of Türkiye.

Within the scope of the Programme, technical assistance in developing new products and services was provided to partner banks, besides the launch of new lending mechanisms and structures for agricultural finance and women entrepreneur finance. Thanks to these efforts, portfolios of small agricultural loans and women entrepreneurs' loans were expanded.

Another aim of the Programme was to support and train the local staff of partner banks in building up an infrastructure to ensure the smooth allocation of the EBRD's loans to MSMEs. Moreover, we supported the creation of a client pipeline via marketing and publicity campaigns, e.g., local events in cooperation with sector organisations and bank staff. Last but not least, the Programme provided hands-on mentoring and monitoring of partner banks' staff in using the EBRD credit lines and mitigating the environmental and reputational risk of the banks.

Donor: EU&KfW

Beneficiary: Small enterprises and partner banks

Year: 2007 – 2012

KfW launched the Project to provide permanent access to small enterprises for loans through on-lending to commercial banks at market conditions. We provided technical advisory services to 4 partner banks on SME and agricultural lending, as well as on new products, scoring models, and procedures development.

Between 2007 and 2012, 4 partner banks disbursed 49 provinces in Türkiye more than 17,000 loans corresponding to EUR 185 million. This on-lending created employment for more than 12,600 people and secured 61,000 jobs. We delivered financial literacy seminars to 500 local SMEs and women entrepreneurs in 12 project provinces of Türkiye.

Donor: EIB

Beneficiary: KGF and MSMES

Year: 2012 – 2014

The project, implemented between 2012-2014, aimed at facilitating MSMEs’ access to finance in developing regions of Türkiye with a combination of EUR 250 million lending by the European Investment Bank.

We developed and introduced a Portfolio Guarantee System (PGS) to fasten guarantee allocation to micro-sized MSMEs in Türkiye. A web-based application tool for PGS was developed and integrated into KGF's MIS. Nine partner banks successfully disbursed the PGS model to 1,900 SMEs who benefited within nine months. Further, we designed a concept for regional MSME seminars and delivered 11 seminars with the participation of 1,970 participants.

Donor: EBRD

Beneficiary: EBRD, innovation-oriented mid-cap businesses

Year: 2018 – 2019

Between 2018 and 2019, we provided technical assistance to EBRD in identifying potential innovation-focused engagement areas for policy dialogue building with the Turkish Government.

We defined an operational approach to streamline investments in innovation by mid-caps and large corporates across multiple sectors of the Turkish economy. We analyzed the innovation gap by conducting three sectoral workshops with middle and large-scale enterprises. We developed an innovation policy dialogue roadmap for the EBRD to support innovation and innovation policies in Türkiye.

Donor: EBRD

Beneficiary: Turkish MSMEs

Year: May 2021 – January 2022

Within the project's scope, we developed an authentic Digital Barometer for MSMEs, a web-based and Excel-form self-assessment questionnaire identifying MSMEs' digital maturity levels and comparing individual enterprise scores with regional and sectoral benchmarks.

After developing the Digital Barometer, we implemented a field survey with 600 MSMEs to test the tool and piloted its functionality by conducting 40 meetings with 20 selected MSMEs. As a result of the pilot, we developed 20 tailor-made digital road maps for selected MSMEs and provided technical recommendations to EBRD for scaling up the Digital Barometer.