100 SMEs take step toward twin transformation journey
MEXT and İşbank joined forces to accelerate the digital twin and green transformation journey, which will increase productivity in SMEs and open up new business opportunities in Türkiye
A PIONEERING digital transformation and competence development center and Türkiye’s largest private lender are partnering to ramp up the productivity of small- and medium-sized enterprises (SMEs) to make them more competitive globally and accelerate their digital and green journeys.
MEXT, established by the Turkish Employers’ Association of Metal Industries (MESS), and İşbank are co-organizing the “Twin Transformation Journey of 100 SMEs” project to generate insights that will guide the Turkish industry upon completion.
Initiated on the occasion of İşbank’s 100th anniversary, the project will kick off with a “Return on Investment Workshop,” attended by the general managers of selected SMEs.
Managers will be briefed on calculating the return on their investments and which criteria to consider, with real examples provided. Following the workshop, the twin transformation analyses of 100 SMEs will be physically conducted at the participants’ factories by MEXT, and digital and green transformation road maps will be shared.
To implement the projects outlined in the road maps, technology providers within the ecosystem of MEXT and İşbank will be brought together with SMEs. As part of the project, the bank will provide various loan support to the enterprises.
The project’s introduction meeting was held this week at the MEXT Technology Center in Istanbul, attended by Özgür Burak Akkol, head of the MESS board of directors, and Hakan Aran, general manager of İşbank.
PREPARATION FOR NEW ERA
Addressing the event, Akkol emphasized the significance of SMEs and said there are over 400,000 enterprises engaged in manufacturing in Türkiye.
“SMEs account for 72.5% of total employment in the sector, constituting 54.2% of the total turnover. We see the Twin Transformation Journey of 100 SMEs project as a strategic step taken for the future of Turkish SMEs engaged in production and our industry. Our aim is to increase the efficiency of SMEs in our country, thereby enhancing their profitability and competitiveness against global rivals,” he noted.
Akkol said they want the SMEs to be more prepared for new regulations, believing that it is not sufficient for only large companies to be prepared for digital and green transformation.
“Half of the total exports made by SMEs in 2022 were to European countries. Hence, global developments such as the European Union’s implementation of carbon taxation at the border indicate that green transformation is no longer an option but a necessity,” he said.
“Our project will also make significant contributions to Türkiye’s sustainable development goals, especially for our SMEs.”
ENHANCING COMPETITIVENESS
İşbank’s Aran highlighted that the project would be a significant opportunity for SMEs to gain competitiveness and foster the emergence of new business areas.
He noted that the selection criteria for SMEs to be included in the project involved being in strategic sectors identified by the Small and Medium Industry Development Organization (KOSGEB), engaging in production, and directly or indirectly exporting goods.
“We have created this project with the dream of SMEs standing firmly on the ground, having completed their digital and green transformation, making a difference in global competition with strengthened finances, and contributing to positioning Türkiye differently,” Aran said.
“The SMEs we have chosen will find us by their side in terms of digitizing the managerial processes of production lines, identifying energy efficiency investment needs, and providing financing support at the most suitable costs where needed.”
Aran also mentioned that alongside MEXT’s digital maturity assessment analysis, they would add a green transformation maturity analysis under the headings of environmental, social, and governance sustainability principles.
“Drawing inspiration from this project, if we assume that other SMEs will complete their twin transformations within three years, there is a potential contribution of up to $269 billion to the national economy. Unless we increase our efficiency and undertake such transformations, we will always focus on exchange rates. We need to break this vicious cycle.”
Aran recalled that 2024 marks İşbank’s 100th anniversary, expressing pride at having introduced many projects touching various aspects of societal life before even the end of the first two months of the year.