Integration of Islamic finance instruments in KOSGEB supports

Microfinance is an essential tool that provides financial and non-financial services to poor and low-income people to put them in an income-generating position and reduce poverty. Today, banks are the most important institutions providing people access to financial services. A part of society can benefit from financial services through both Islamic and conventional banking activities. However, due to the nature of banking activities, banks do not want to experience disruptions in the repayment of the financing they give and seek a repayment guarantee. At this point, people in the low-income group are out of the bank due to a lack of collateral and lack of credit history. The Islamic Microfinance system's cornerstone is ensuring that even the poorest people have access to finance and can engage in income-generating activities. Today, even participation banks cannot provide this. Small and Medium Enterprises Development and Support Administration (KOSGEB) is a state institution that creates the largest support programs to support SMEs and new entrepreneurs in Türkiye and supports businesses with reimbursed and non-reimbursable supports. The aim of this thesis study is to evaluate the support programs provided by KOSGEB, Türkiye's most comprehensive Microfinance institution, to identify the problematic areas and to offer solutions for the correction of these problematic areas within the framework of Islamic Microfinance, and also to offer suggestions for the integration of support programs into the Islamic Microfinance system. The study consists of 3 parts. In the first chapter, basic information about Microfinance and Islamic Microfinance is given and the instruments of Islamic microfinance are explained. In the second part, information about Microfinance in Türkiye is given and the institutions/organizations providing Microfinance are listed. In this section, KOSGEB and current support programs are also explained. In the third part, KOSGEB supports are evaluated both in terms of its general structure and in terms of Islamic Microfinance. Suggestions are presented for integrating the supports into the Islamic Microfinance system. Keywords: Microfinance, Islamic Microfinance, KOSGEB, Islamic Microfinance in Türkiye