About The Project

The EU-Funded FOSTER Project: Empowering the Private Sector to Foster Social and Economic Cohesion in Türkiye aims to contribute to the empowerment of the private sector in Türkiye to increase the formal employment of Turkish citizens and foster social and economic cohesion of foreigners under temporary and international protection and increase the resilience of Turkish SMEs operating in selected 15 provinces.

The Project targets small and medium-sized enterprises (SMEs) by strengthening their position as employers via enhanced access to finance with improved conditions and well-designed investment grant programs having high potential to ease conditions for retention and creation of formal employment.

PROGRAMME DONOR	EUROPEAN UNION
IMPLEMENTING PARTNER (CONTRACTING AUTHORITY)	KfW Development Bank
PROJECT EXECUTING AGENCY	KOSGEB
IMPLEMENT AT I ON CONSULTANT	FRANKFURT SCHOOL OF FINANCE & MANAGEMENT
PROJECT END DATE	30 NOVEMBER 2025
TOTAL BUDGET	71.350.000 EURO
IMPLEMENTATION PROVINCES	AAnkara, Adana, Bursa, Gaziantep, Hatay, İstanbul, İzmir, Kahramanmaraş, Kayseri, Kilis, Kocaeli, Konya, Mardin, Mersin and Şanlıurfa

PROJECT BENEFICIARIES

Small and medium sized enterprises (SMEs) operating in the project provinces,
Foreigners under temporary and international protection and Turkish citizens that are unemployed, or are employed in informal jobs in the project provinces,
Foreigners under temporary and international protection and Turkish citizens who are formally employed by the SMEs with a regular income in project provinces.

PROJECT COMPONENTS

Component I – Interest/Profit Share Subsidy up to 506 Thousand Euros

Within the scope of Employment Committed SME Finance Support Programme, a total of 506 thousand Euros of interest/profit share subsidy will be provided to SMEs. Through the Subsidy Mechanism, it is aimed to create formal employment for unemployed or informally employed Turkish citizens and foreigners under temporary and international protection to integrate them into economic life; and to retain the jobs of those who are currently employed.

EXPECTED RESULTS

Total jobs created under the Project	At least 50 formal employment positions retained or created for foreigners under temporary and international protection (at least 50%, all are ESSN beneficiaries or other foreigners) and Turkish citizens
Beneficiary SMEs	At least 25 businesses

Programme II – Grant Support up to 65 Million Euros

Projects prepared by SMEs operating in 15 provinces will be supported. Through this support, registered employment will be created or retained for Turkish citizens, foreigners under temporary protection or international protection.

With the Employment Committed SME Support Programme, a total of 65 million Euros worth of grant support will be provided to SMEs.

EXPECTED RESULTS

Total jobs created under the Project	GAt least 5,738 formal employment positions retained or created for foreigners under temporary protection or international protection and Turkish citizens (at least 50% being foreigners)
Beneficiary SMEs	At least 2.172 businesses

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