This study examines the impact of government support on enhancing the competitive strength of small and medium-sized enterprises (SMEs). The research compares the government support policies implemented in Turkey and Azerbaijan. Using a qualitative analysis approach, the study evaluates the effectiveness of institutions in Turkey, such as KOSGEB, TÜBİTAK, and Development Agencies, as well as the government support mechanisms in Azerbaijan, to assess their impact on the competitiveness of SMEs. The findings show that government support in both countries has significantly influenced SMEs' export capacity, innovation levels, and production efficiency. However, challenges such as bureaucratic obstacles and resource limitations have restricted the effectiveness of these supports in both countries. The study provides policy recommendations to maximize the potential of government support in increasing SMEs' sustainable growth and international competitiveness. This research fills an important gap in the literature on SME support policies in Turkey and Azerbaijan, highlighting the economic differences between the two countries.