Financial support and government incentives provided to busineses: A study on BIST companies

The changing global economy compels businesses to offer their products and services in line with market conditions, which in turn affects their competitive strategies and economic structures. As profit-oriented entities, businesses may encounter financial challenges in the face of unexpected developments. To overcome these challenges, financial support such as government incentives and subsidies plays a vital role. These supports enable businesses to organize their operations and increase profitability, while also contributing to the economy and societal welfare. Through such assistance, businesses can adapt their products and services to consumer demands and help improve living standards. In this context, the study analyzes the effects of government incentives and subsidies on business profitability, production capacity, and operational processes. The sample of the research consists of companies listed on Borsa Istanbul (BIST) that benefited from government support between 2016 and 2024. Annual activity reports of these companies were examined in detail to identify which incentives they received. The findings indicate that businesses operating in similar sectors applied for the same types of incentives. However, differences in the types and amounts of incentives used were observed across sectors. While these supports had a positive impact on the sales and profit margins of some businesses, they were effective only in limited areas for others.