EBRD rolls out support for young entrepreneurs in Türkiye

• EBRD rolls out Youth in Business programme in Türkiye
• Programme will mobilise up to €250 million of financing
• Initiative supported by Turkish government and EU

The European Bank for Reconstruction and Development (EBRD) has rolled out its Youth in Business programme in Türkiye, following the successes achieved by the programme in 12 other economies. This initiative is expected to mobilise up to €250 million of financing for young entrepreneurs in the country.

The initiative is supported by the Turkish government and the European Union (EU) and aims to provide financial assistance, know-how and non-financial business development services to people under the age of 35.

Fostering youth entrepreneurship in Türkiye could significantly enhance the country’s economic growth, but various challenges are preventing Türkiye from capitalising on this potential.

Youth unemployment remains high in Türkiye, while entrepreneurs lack access to finance, experience and information, with those factors constituting significant obstacles.

The Youth in Business programme will provide financing, technical cooperation and risk cover to partner financial institutions in Türkiye, which will then lend those funds on to micro, small, and medium-sized enterprises that are managed or majority-owned by young individuals.

Support for the regions that were struck by the devastating earthquakes in February 2023 remains a key priority for the EBRD in Türkiye, with the programme aiming to channel 70 per cent of its funding to enterprises in those regions. By helping those businesses to start or continue operating, the EBRD will seek to mitigate the economic consequences of the disaster and preserve the human capital of the affected cities.

Speaking at the launch event in Istanbul, Francis Malige, the EBRD’s Managing Director for Financial Institutions, said: “Since its inception in Egypt in 2021 with a €100 million initial size, the Youth in Business programme has now grown to a €1 billion programme with over €250 million investments through established partnerships with 30 financial institutions, expanding across our 12 economies. Türkiye’s greatest asset is its youth, so I am confident that the Youth in Business programme will make a great home for itself among the country’s creative, dynamic, resilient young entrepreneurs.”

The launch event also witnessed the commitment of the first cohort of Turkish partner institutions, with Akbank, Sekerbank and TEB committing to be part of the programme.

The EBRD is one of Türkiye’s key investors, with more than €22 billion committed through 489 projects and trade finance limits since 2009, largely in the private sector.