Türkiye - Post-Earthquake Micro, Small, and Medium Enterprises (MSME) Recovery Project

Overview & Synopsis

Ratings of the Türkiye: Post-Earthquake Micro, Small and Medium Enterprises (MSME) Recovery Project for Türkiye were as follows: outcome was satisfactory; Bank performance was satisfactory; M&E quality was modest. Investments in KOSGEB’s institutional capacity during prior operations enabled rapid, fair design, broad outreach, streamlined applications, and fast disbursement critical for post-crisis business continuity and job retention. Mandatory online applications did not exclude potential beneficiaries, as the system was simple, well known, required limited documentation, and was supported by KOSGEB local offices and partner organizations; well-designed digital delivery, backed by field support, can ensure wide access without discrimination. Accepting applications beyond available financing raised expectations and caused delays for some approved firms; future calls should consider closing when funding limits are reached or otherwise manage expectations, though parallel financing later mitigated gaps. The first-come, first-served approach, while fast and objective, may reduce equity when resources are limited; future programs should incorporate prioritization or earmarks for severely and moderately damaged MSMEs and women-owned or led firms to improve targeting. Beyond finance, networking, motivation, and tailored support such as business continuity training and mentorship strengthen recovery and resilience. Project duration should align with the M&E plan and indicator timelines to allow proper data collection and assessment; a longer implementation window (at least three years) would enable reporting against indicators due two years after disbursement, and outcome analysis should include pre-disaster baselines for employment and revenues to contextualize results. The implementation provides a sound basis for impact evaluation, using approved but later-funded or unfunded applicants as a quasi-control group to rigorously compare employment and revenue outcomes against the treatment group. Short-term liquidity support effectively preserves jobs and continuity after disasters but does not ensure longer-term development outcomes; complementary or follow-on operations should be planned to address underlying constraints and sustain recovery.