The Role of SMEs in Turkey’s Defense Industry: The Supply Chain’s Invisible Backbone

SMEs are not the final producer of a defense platform but specialized suppliers of parts, materials, subsystems or engineering services within a specific link of the supply chain — electronic-card assembly, precision machining, casting, wiring, composite manufacturing, coating, test-measurement and software modules. According to official and institutional statements, more than 3,500 companies operate in Turkey’s defense ecosystem, though a single, regularly published SME count does not exist; broader supply-chain references cite over 4,000 firms, the large majority SME-scale suppliers.

AT A GLANCE

Total companies in sector

Over 3,500 (SASAD/SSB)

Sector employment (2023)

90,969 people

SME exports (2022)

$994 million

Companies assessed under EYDEP

~956 (as of 2023)

OSSA member companies

300+, ~10,000 employees

Localization rate

Above 80% (official)

Scale and support programs

SME footprint (selected indicators)

Indicator	Value	Note
SME exports (2022)	$994 million	SASAD performance report
Total sector exports (2023)	Over $5.5 billion	Company-declared, SASAD
EYDEP-assessed companies	~956 (cumulative to 2023)	SSB competency program
OSSA members	300+ companies, ~10,000 employees	Defense industry cluster

EYDEP (Industrial Competency Assessment and Support Program), launched by SSB in 2017, measures and develops companies’ production, engineering and management competencies. It evaluated 197 firms in its first two years, reaching a cumulative total of roughly 956 by 2023.

Clusters such as OSSA and TSSK partly offset SMEs’ scale and visibility disadvantages by bringing them to the same table as prime contractors. EYDEP, YETEN and TUBITAK calls, plus KOSGEB’s defense-specific financing window, are public tools aimed at helping these firms clear competency and capital thresholds. Financing access, certification costs and dependence on a small number of prime-contractor orders remain the sector’s structural challenges for SMEs.

FAQ

What role do SMEs play in the defense industry?

SMEs are not the final producer of a platform but specialized suppliers within a specific link of the supply chain — parts, materials, subsystems or engineering services such as electronic assembly, precision machining, casting, wiring, composites, coating, testing and software.

How many companies and SMEs exist in Turkey’s defense industry?

Official and institutional statements cite over 3,500 active companies; broader supply-chain references cite over 4,000. The large majority are SME-scale suppliers; a single regularly published SME count does not exist.

How much do SMEs export?

According to the SASAD performance report, 2022 SME exports were $994 million. Total sector exports exceeded $5.5 billion in 2023.

What is EYDEP and how many companies has it assessed?

EYDEP is SSB’s Industrial Competency Assessment and Support Program, launched in 2017, measuring and developing companies’ production, engineering and management competencies. It evaluated 197 firms in its first two years, reaching roughly 956 cumulatively by 2023.

SMEs form the invisible but load-bearing backbone of Turkey’s defense industry ecosystem. While prime contractors handle system integration and final products, a platform’s thousands of components are produced by numerous small and mid-sized firms at the base. The more than 3,500 companies, $994 million in SME exports (2022), and roughly 956 firms assessed under EYDEP quantify this base’s weight. Clusters like OSSA and TSSK, along with EYDEP, YETEN, TUBITAK calls and KOSGEB’s defense financing window, are the public tools supporting this layer — though financing access and order concentration around a few prime contractors remain open structural challenges.