3.9 Start-up funding for young entrepreneurs
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Access to information
All supports have been explained together with their conditions and details in official website of KOSGEB. Announcements are made through the website of KOSGEB and there are internet platforms which are used to announce all grant and project support programs at national level. In addition, guidelines and brochures relating to entrepreneurship start-up supports provided by KOSGEB are developed and published. Entrepreneurs are informed at local level of supports and other funding opportunities by means of provincial directorates of KOSGEB.
Access to capital
KOSGEB plays a crucial role in supporting young entrepreneurs by offering various funding programs designed to enhance business development and innovation. In 2024, several programs have been introduced, including the Entrepreneurship Support Program, which provides financial assistance to new businesses, and the Global Competitiveness Support Program, aimed at improving the international market presence of SMEs. Additionally, KOSGEB facilitates investment in technology and innovation through initiatives such as the SME Technology Product Investment Support Program (TEKNOYATIRIM) and the Technology Development Centers Support Program (TEKMER). Start-ups in the green economy sector can also benefit from the Green Industry Support Program, which encourages environmentally sustainable business models. Beyond KOSGEB, TÜBİTAK supports innovation-driven entrepreneurship through R&D-focused programs, such as the Industrial R&D Projects Support Program (1501) and the SME R&D Startup Support Program (1507), which provide funding for research-intensive enterprises.
The Young Entrepreneur Tax Incentive, implemented by the Revenue Administration (Gelir İdaresi Başkanlığı), provides income tax relief to individuals aged 18-29 who establish their own businesses. Under this scheme, young entrepreneurs are exempt from income tax on earnings up to 330,000 TL annually for the first three years of their business operations. This incentive aims to reduce the financial burden on newly established businesses and encourage entrepreneurship among young people.
To further support young entrepreneurs, the Treasury and Finance Ministry covers one year of social security contributions for individuals benefiting from the young entrepreneur incentive. Under this scheme, entrepreneurs aged 18-29 who establish their own businesses for the first time have their minimum wage-based social security premiums covered for 12 months. This measure reduces initial operational costs and encourages youth participation in the labor market.
For businesses looking to expand their workforce, The Social Security Institution provides employer incentives for hiring young individuals, women, and vocational certificate holders. Employers in the private sector who hire individuals from these groups between March 1, 2011, and December 31, 2025, benefit from full coverage of their employer-paid social security premiums, with the incentive period ranging from 6 to 54 months, depending on the employee’s age, gender, and qualifications.