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Starting a business in Türkiye with government support and little capital

Support schemes in Türkiye do not remove the need for capital, they shrink it. This page sets out what each route covers and what remains on your side.

A small business owner packing an order box at her workbench

The idea of starting a business in Türkiye with no capital and pure state money circulates widely and is not accurate as stated. Support schemes do not remove the need for capital. They reduce how much you need and they share the risk. The real question is which programme covers which cost, and what is left.

This page answers that programme by programme. We do not print amounts or rates, because they change with each call period and a stale figure leads to a bad decision. For current figures, read the call document or ask us.

Three rules first

Support is usually paid after expenditure. You issue the purchase, you pay, then you submit documents and receive the support. The gap is measured in months.

Co financing exists almost everywhere. A programme covers a share of the cost, not all of it. The rest is your money or the bank's.

The eligible cost list is narrow. Land purchase, repaying existing debt, second hand equipment and most operating expenses fall outside. Read the list before you spend.

Routes that lower the capital requirement

RouteWhat it providesWhat stays with you
Non repayable grantCovers a share of specified cost linesCo financing and everything outside scope
Interest supportCovers part of the interest on a loanPrincipal and remaining interest
Guarantee supportCloses a collateral gap and opens access to creditThe loan itself, repayable
Tax and premium incentivesDefers or reduces cash outflowThe investment itself
Site and infrastructure supportAdvantage on land allocation and connection costsConstruction and facility cost
Training and advisory supportKnowledge and documentation before set upExecution

Most realistic plans combine two or three. Equipment through an entrepreneur grant, the balance through a guaranteed loan, and employment costs reduced through premium incentives.

Which institution does what

KOSGEB

Runs programmes for SME scale businesses and new entrepreneurs. On the entrepreneurship side the headings are training, set up costs after incorporation, and machinery and equipment. On the business development side, certification, promotion, trade fairs and testing. Programmes open through periodic calls.

İŞKUR

Entrepreneurship training and employment side incentives. Social security premium and tax advantages on new hires cut personnel cost noticeably in the early years.

Agriculture and rural development

Separate grant programmes exist for agricultural production, livestock, aquaculture and rural businesses. Rural development support opens in defined provinces for defined production subjects, on a published call calendar.

Development agencies

Each region's agency runs financial support programmes aligned with regional priorities. Application windows are limited and vary by region. For small scale projects this is one of the more accessible doors.

Ministry of Trade

For export oriented businesses there are schemes covering market entry, trade fairs, promotion and e-export. Applications run through the Support Management System (DYS).

Banks and guarantee institutions

State bank tradesman and entrepreneur loans, together with credit guarantee support, close the cash gap alongside a grant. These are not grants; they are repaid.

A realistic sequence for a low capital venture

  1. Define the business. What you sell, to whom, at what price. Programmes assess a plan, not an idea.
  2. Run an eligibility screen. Establish which programmes accept your size, activity code, province and sector.
  3. Build the cash plan. How much money is needed in which month and when support arrives. Do not start spending before this table exists.
  4. Separate eligible costs. Which spending is covered and which is not, with a funding source for the uncovered part.
  5. Prepare documents. Chamber record, signature circular, tax and premium clearance, site documents, quotes.
  6. Track the call calendar. Most programmes are not open year round. Waiting with a finished file beats preparing one once a call opens.

What to expect

Setting up a supported business usually takes between six months and a year. Most of that goes on document collection and waiting for evaluation. Support does not cover the whole initial investment, and the part it does cover mostly arrives after the money has left.

Even so, a supported business starts with lower debt and better equipment than the same business without support. That is where the difference shows.

Claims worth ignoring

"The state gives out dealerships." No such programme exists. A franchise is a commercial contract with a private company and its fee is not an eligible cost in most schemes.

"Everyone who applies receives support." Most programmes score applications and have a fixed budget. Files below the threshold are not funded.

"Grant money is paid into your account." Payment is generally made against expenditure documents. Spending comes first.

"A consultant can guarantee approval." Nobody can. The institution decides.

Where to begin

If you have a business idea, the first step is an eligibility screen. Working from your activity, scale and intended province we set out which programmes are open to you. That assessment is free and fits on a single page.

Promises to stay away from

  • Intermediaries who say the grant is certain
  • Consultants who want a large fee up front, before any application
  • Official looking calls and messages using an authority's name
  • Ready made business packages said to be funded by the state

Common questions on this topic

Can a business really be started with no money at all?

No. Almost every scheme either reimburses after expenditure or requires co financing. You spend first and recover part of it later. Treat any promise of zero capital with caution.

What is the difference between a grant and a subsidised loan?

A grant is non repayable as long as you meet the conditions. A loan is repaid with interest, and state support there takes the form of covering part of the interest or providing a guarantee.

Can I apply before incorporating?

Entrepreneur programmes can run training and pre assessment before incorporation. Payment normally requires an established business. Confirm the condition in the specific call document.

Is there anything extra for women and young entrepreneurs?

Yes. Many programmes award additional points or a higher support rate to women, young and disabled entrepreneurs, and the tax code carries a separate young entrepreneur earnings exemption.

Are franchise fees covered?

Franchise fees are not eligible costs in most programmes. Equipment, machinery, software and promotion often are. There is no state programme that hands out dealerships.

Which sectors find support easiest?

Manufacturing, software, agricultural production and export oriented businesses appear most often in programme priority lists. Retail and simple service businesses sit outside the scope of most schemes.

Where do people go wrong?

Two places. Cash flow, because support arrives later and the early months still need money. And spending before reading the scope, then discovering the cost was never eligible.

If you have an idea, let's check what it qualifies for

Tell us what you want to do and how much you can put in. We'll tell you which programme is worth pursuing.