Within the scope of the FOSTER Project, financed by the European Union, managed by KfW Development Bank, and implemented by KOSGEB, a Delegation composed of the KOSGEB Vice President, Department Head, Managers, and the Project Team Leader conducted a study visit to Madrid, Spain, on November 13-14, 2025. 

The purpose of the visit was to examine successful international models on site, further develop employment-oriented support mechanisms, and expand the project’s impact.

In line with the priority areas of the FOSTER Project, the Delegation visited key institutions in Madrid including the Public Employment Service (SEPE), FUNDAE, the International Organization for Migration (IOM) Spain, and La Nave one of the city’s leading entrepreneurship hubs. 

During the programme:

▪ Spain’s national employment policies and strategic approaches were discussed,

▪ The qualified training models provided by FUNDAE were reviewed,

▪ In-depth exchanges were held on the integration of foreigners into the labour market and on IOM’s projects and activities in Spain,

▪ Innovative practices were observed at La Nave, a central actor in Madrid’s start-up ecosystem.

The meetings and exchanges provided valuable insights and collaboration opportunities that will contribute to strengthening the FOSTER Project’s approach in the areas of employment, integration, and entrepreneurship.

Within the scope of the FOSTER Project, a Delegation led by the KOSGEB President carried out a study visit to Frankfurt, Germany, between June 15 – 17, 2025. The visit aimed to examine international financing opportunities and obtain information about SME support mechanisms. 

As part of the program, the Delegation held critical discussions in Frankfurt, as Europe’s leading financial hub, regarding SME financing, green transformation, and the entrepreneurship ecosystem.

Visit to KfW Development Bank 

The first stop of the programme was the headquarters of KfW Development Bank, where high-level meetings were held. Key topics discussed included: 

▪ SME Support and Financing Instruments: Comprehensive insights were shared on KfW’s current SME support programs and financing instruments.

▪ Focus on Women’s Empowerment in Finance: The latest trends in SME finance and opportunities for financial cooperation with a focus of empowerment of women were examined.

▪ Venture Capital and Fund-of-Funds: Detailed presentations were delivered on the structure of KfW Capital, as well as venture capital and fund-of-funds mechanisms.

▪ Innovative Solutions: Exchange of experience was made regarding innovative financial tools that support entrepreneurship and SME growth.

Visit to Frankfurt School of Finance & Management

In the second phase of the programme; the Delegation visited the campus of Frankfurt School of Finance & Management. Bringing together academic expertise and practical application, the visit included: 

• Capacity Building: The university’s thematic programs and expertise capacity development activities were examined.

• Entrepreneurship Centre: The Delegation visited the Entrepreneurship Centre and got involved in an exchange of ideas with young entrepreneurs.

Throughout the visit, expert presentations focused on SME ecosystems of Europe and Germany, support structures, and particularly Green Transformation strategies. Sustainability initiatives and executive education programs were among the significant outputs that will contribute to the future vision of KOSGEB and the project.

The German Ambassador to Türkiye, Mrs. Sybille Katharina Sorg, visited a beneficiary SME in Hatay to observe the on-the-ground implementation and success stories of the FOSTER Project.

German Ambassador Sorg was accompanied by Mr. Christian Garve, Country Director of KfW Türkiye; Mr. Johannes Drijkoningen, Deputy Head of the Economic Section at the German Embassy; and representatives of the Implementation Consultant, Frankfurt School. On November 7, 2025, the Delegation visited Setal Alüminyum, one of the exemplary SME beneficiaries of the FOSTER Project in Hatay.

During the visit, a comprehensive presentation was delivered on the overall framework and progress of the FOSTER Project. The Delegation toured Setal Alüminyum’s production facilities to closely examine its operations. Company shared firsthand how the support provided under the FOSTER project has contributed to their production capacity.

This high-level visit reaffirmed the FOSTER Project’s contribution to the local economy and employment, underlining its critical role in enhancing the resilience of SMEs.

The experiences gained during the FOSTER I Project demonstrated that integrating Environmental and Social (E&S) considerations are not merely technical requirement, but a matter of institutional mindset and approach. Rather than simply explaining “what should be done,” our approach focused on making field practices visible and collectively building environmental and social awareness across the project ecosystem.

What was achieved under FOSTER I:

• A project portfolio of approximately 7,000 SMEs was managed.

• On-site monitoring and verification activities were carried out for around 1,000 SMEs within this portfolio.

Within the established E&S framework:

• SMEs were classified according to sector-based risk categories. 

• A preliminary screening (exclusion) process was applied to ineligible activities.

• Higher-risk enterprises were subject to on-site monitoring visits. 

This structured system ensured that:

The frequency, scope, and focus areas of monitoring for each SME were clearly defined in advance.

The Role of KOSGEB:

 With the support of the Implementation Consultant, KOSGEB:

• Acted as the main institution monitoring the reflection of E&S practices in the field.

• Conducted on-site monitoring visits through project field officers.

• Maintained direct contact with SMEs.  

• Ensured that identified issues were recorded.

What did These Efforts Achieve?

• A common working language was established for KOSGEB and field teams.

• A significant number of the SMEs began for the first time, to systematically address topics such as environmental management, occupational health and safety, and workers’ rights.

Challenges Encountered

• Workload imbalances occurred across different project provinces.

• Due to the early start of monitoring, there was a loss of effort for SMEs that later dropped out of the project.

• Data stored across multiple locations made tracking difficult.

• The voluntary nature of actions plans limited progress in some SMEs.

These provided valuable guidance for designing a stronger and more efficient structure for the new phase.

What Changes under (FOSTER II):

In the new phase, our objective is clear:

To carry out the same core activities in a more streamlined, structured, and sustainable manner. To ensure the effective implementation of this system, training regarding E&S monitorings was provided to KOSGEB SME Experts and Local Project Coordinators to encourage active E&S participation inthe field.

Key Improvements:

1- Revised Monitoring timeline

Monitoring activities will begin after SMEs receive their initial support.

2- Simplified Data management 

E&S information will be managed through a single and centralised system

3- Stronger Training and guidance 

SMEs will be supported with: 

• Short guidelines,

• Visual checklists,

• Sector specific handbooks 

4- Incentivizing Compliance

Good practices will not only be recommended, but also supported through incentive mechanisms 

Environmentally and socially responsible practices enhance project quality, strengthen institutional credibility and generate long-term benefits for all stakeholders.

Under the project “Empowering the Private Sector to Foster Social and Economic Cohesion II – FOSTER II Project” funded by the European Union, managed by KfW Development Bank, and implemented by KOSGEB, we organised 23 Information Meetings across 20 provinces to introduce the SME Finance and SME Support Mechanisms.

The meetings were held in Ankara, Adana, Adıyaman, Batman, Bursa, Diyarbakır, Gaziantep, Hatay, Istanbul, İzmir, Kahramanmaraş, Kayseri, Kilis, Kocaeli, Konya, Mardin, Malatya, Mersin, Osmaniye, and Şanlıurfa, bringing together SMEs to learn more about the programmes.

During the Information Meetings, participants were informed about; 

▪ Two main components of the project,

▪ Application steps,                                                                                                                              

▪ Key aspects of the support mechanisms.

Over 1,500 people attended the meetings, which attracted significant interest from SMEs that show up with more than 1,180 SME representatives.

In addition, information was shared to raise awareness on work permit process, regulatory requirements and the integration of foreign labor in employment, along with the project components. According to the post event survey results, more than 90% of the participants reported increase in awareness. 

Satisfaction levels were also high. Evaluations for all measurements regarding venue, content and overall organization indicated a satisfaction rate exceeding 94% while 96,9% of participants stated that they gained detailed information about the FOSTER II Project and the role of the European Union in the project.

At the end of each meeting, questions regarding support processes and work permits were answered by KOSGEB SME Experts and officials from Presidency of Migration Management, and feedback was collected to improve implementation processes.

Through FOSTER II Project, we support SMEs to manage their human resources in the best possible way and play an effective role both in the domestic market and in cross-border markets with international labor force.

Applications for the FOSTER II Project’s SME Finance Support Programme were launched on July 1, 2025. Loan disbursements will continue until March 31, 2026.

Within the Programme;

• More than 1,050 SMEs have accessed loans,

• EUR 420,000 support payment has been provided to 170 SMEs

Under the programme, loans disbursed through Ziraat Bankası, Ziraat Participation Bank, TEB, and VakıfBank are backed by a Credit Guarantee Fund (KGF) guarantee of up to 80%. In addition, SMEs may receive up to EUR 15,000 in support, payable in six equal instalments.  

The programme also promotes women’s and youth employment, with the objective of:

• Supporting at least 1,200 enterprises, and

• Contributing to the employment of approximately 2,400 Turkish and foreigners.

Through FOSTER II Project, we facilitate access to finance under favourable conditions, reduce the financial burden on SMEs through KGF guarantees, and promote employment with a strong focus on social cohesion – supporting sustainable growth for the long term.

Applications to FOSTER II SME Support Programme were completed between December 1 and 31, 2025, with intense interest from SMEs. 

Winning SMEs will receive up to EUR 18,000 support for the employment of two personnel including one Turkish citizen and one foreigner. If at least one of the personnel is a woman or a young person under the age of 30, the grant support amount will increase up to EUR 22,000 paid in four equal installments.

Following the completion of the systematic evaluation process, the results have been finalized:

• 1,962 enterprises have been awarded support,

• 407 enterprises have been placed on the waiting list.

If any of the winning SMEs decline to benefit from the support or are unable to meet the conditions for receiving support, resulting in their “application being canceled/support being terminated,” the SMEs on the waiting list will be invited to benefit from the support, starting from the top of the list in order of points.

Please click for the list of winning SMEs and waiting SMEs.

The support process started on February 1, 2026, and the first support payment request can be made by SMEs on June 1, 2026.

İs Teknoloji has accelerated its digital archive projects by increasing its employment capacity thanks to the support they received under the FOSTER Project Employment Committed SME Support Programme. The company offers turnkey projects by developing software and service bureau-based technologies and products in document scanning, image processing, document archiving and document management. İs Teknoloji employed two Turkish citizens and two foreigners under temporary protection thanks to the Employment Committed SME Support Programme of the FOSTER Project. This investment in employment contributes positively to the progress of the project with the qualified labour force it provides.

The services developed by İs Teknoloji contribute to the conservation of natural resources by reducing paper consumption. The digitalization process also leads to significant savings in energy and water consumption. Transitioning to digitalized document management instead of physical copying processes helps reducing the carbon footprint by minimizing the use of energy-intensive devices. This environmental friendly service does not only enhance business efficiency but also makes a significant contribution to the conservation of natural resources and environmental sustainability. In this way, businesses both reduce their costs and fulfil their social responsibilities by adopting an eco-friendly approach.

Mr. Şükrü Armağan, General Manager of İs Teknoloji, mentioned that their first entrepreneurial idea started in 1998 when he and two friends opened a store called EŞE Bilgisayar, where they sold computer games and repaired computers. In 2014, they took over a business named Neteksis and renamed it as İs Teknoloji. Since then, they have stood out in the industry by playing a significant role in the development of IT projects for both public and private sectors with high information technology and object-oriented application development approaches.

By accelerating its digitalization processes under the FOSTER Project Employment Committed SME Support Programme, İs Teknoloji increases its employment capacity and takes significant steps towards sustainability. The company’s success sets an example in enhancing business efficiency and fulfilling social and environmental responsibilities.

Ms. Didem Yayın embarked on her professional journey in 2010 at a Turkish Telekom TNT dealership. Ms. Didem Yayın, who gained experience in this five-year journey eventually moved on to manage the field personnel in 2015 and continued activities as a business partner in a different business line of Turkish Telekom. Currently, they focus on digitalizing SMEs and offering internet for mobile lines to them. They are actively operating in Bursa, Kütahya and Balıkesir regions.

A significant part of Yayınnet’s team consists of field staff who visit companies and provide solutions to their technical needs. The office team handles sales operations and completes activation processes in the Turkish Telekom System. Half of Yayınnet’s team, which consists of 33 members, comprises of women who diligently carry out their work.

During the pandemic, Yayınnet managed to retain its workforce by benefitting from KOSGEB support, which proved to be a significant contribution to sustaining their business. Subsequently, they continued to improve their business through the FOSTER Project Employment Committed SME Support Programme.

Within the scope of the project, in addition to retaining the employment of two Turkish citizens, Yayınnet also employed two foreigners under temporary protection. The foreigners under temporary protection, who started their jobs as associate degree graduates, have improved their Turkish over time as they constantly make phone calls as part of their jobs. Emphasising the importance of sustainability, Yayınnet is committed to retaining the employment of these personnel after the end of the project.

Despite the challenges faced during the pandemic, the Yayınnet team successfully continued their operations through proactive approaches and dedicated efforts. Mr. Didem Yayın, who is focused on sustaining and expanding her business, aims to increase employment opportunities for youth and women in the future. Yayınnet will continue to support SMEs in the digital transformation process while maintaining its leadership position in the industry.