Investing in Entrepreneurship in Turkey
Immigrant entrepreneurs offer unique solutions to local problems in developing nations by helping overcome any barriers to entrepreneurship through providing funds, services and expertise.
Results revealed that optimism, risk-taking propensity and having a family member who is an entrepreneur were significantly associated with entrepreneurial intentions of both U.S. and Turkish students; however, an unfavorable evaluation of economic conditions in Turkey seemed to dampen entrepreneurial plans.
Starting a Business in Turkey
Due to recent laws aimed at encouraging foreign investment, setting up a new business in Turkey has never been simpler. Thanks to its thriving economy, young population, and easy access to international markets, Turkey offers entrepreneurs many advantages when starting up. Before making any financial commitments however, it is crucial that one takes the time to carefully plan the structure of their company – any mistakes could have serious repercussions!
When starting a company in Turkey, there are various business structures you can select. You have options including sole proprietorships, limited liability companies, joint stock companies and cooperative societies – each has their own advantages and disadvantages so it is essential that you consult an expert before selecting a legal structure for your organization as the wrong decision could incur costly penalties and tax issues down the line.
Once you’ve selected the type of business you wish to open, it is essential that you secure professional assistance to set it up and file all necessary documents. Accountants also can assist in filing tax returns with HMRC as well as reports with Chambers of Commerce. They will help explain any fees or taxes due during operation as well as help understand which may need to be paid in addition to taxes that must be paid upfront.
When starting a business in Turkey, it’s essential to take note of its local culture and customer base. Turkish customers tend to be highly demanding; therefore it is essential that excellent customer service be offered so your company can flourish. Furthermore, learning more about Turkish culture will enable you to communicate more effectively with customers.
Finally, having business insurance in place for your company can provide invaluable peace of mind against unexpected events that might arise. Although its costs may seem steep at first glance, having this kind of protection provides peace of mind that your company will always remain protected.
Legal Issues
Turkey offers entrepreneurs many lucrative business opportunities. Before establishing your company there, however, it’s crucial that you conduct thorough due diligence on its laws and regulations so as to avoid unnecessary costs or legal complications in the future.
Turkish business environments are constantly shifting, making it imperative that foreign companies keep abreast of changes. Staying current on legislative or regulatory updates ensures your company remains compliant and is ready for any challenges that may arise. Carrying out research, attending industry-specific seminars and working closely with local advisors are great ways to stay current on any relevant updates.
Entrepreneurs in Turkey face one of the greatest difficulties when launching startups – finding financing. Startups usually are unable to secure enough funding for all expenses, so alternative sources must be sought out such as venture capital companies and angel investors who specialize in investing in high-return startups with strong potential returns, with the knowledge, financial backing, network connections and experience necessary for taking them forward.
Entrepreneurs in Turkey face another significant hurdle due to its high corporate tax rate of 20%. While this tax can significantly eat into profits, this issue can be alleviated by taking advantage of government incentives and minimizing tax-deductible expenditures.
Turkish entrepreneurs face one final concern regarding labor costs: an aging workforce in need of training. But this problem can be addressed by hiring the services of an HR consulting firm which specializes in employee efficiency and productivity improvements.
As part of any Turkish acquisition, it’s crucial to assess the transferability of licenses, permits and contracts – this step helps avoid loss of intellectual property assets as well as potential liabilities associated with changing ownership of these assets.
Researching the Local Market
Turkish market research requires meticulous consideration of cultural nuances when it comes to communication styles and business practices, so partnering with an established full-service market research firm with experience in Turkey is absolutely essential.
An agency located within Turkey can provide invaluable insight into all manner of issues that could impede your company’s success in Turkey, such as consumer habits, economic trends and government regulations. They can also assist in creating an entry strategy and making more informed decisions on where best to allocate your resources.
Market research firms employing qualitative methodologies will use both face-to-face interviews as well as various online and offline sources, including industry publications, government statistics and secondary sources, to obtain accurate information about the Turkish market. An efficient market research firm should use multiple data sources so as to complete and accurately represent its research project.
Turks remain wealthy consumers who increasingly rely on online commerce for purchases. E-commerce is one of the fastest growing sectors in Turkey due to the rising use of digital gadgets and price comparison tools – providing a convenient environment for testing out new digital products.
Turkish consumers are quite knowledgeable of luxury brands and would likely purchase them if the price were appropriate. Furthermore, Turkey is expected to experience minimal impact from a global economic downturn which makes it an excellent opportunity for luxury brands looking to expand in this region.
An effective market research firm that conducts in-depth interviews with your target audience and provides insightful analysis can be the key to understanding their needs and motivations and creating a successful marketing campaign.
GfK is a full-service market research and consumer insights company dedicated to helping clients gain better insights into people, markets and brands – now and into the future. Their global teams combine data science expertise with creativity in developing innovative research solutions that address even the toughest business questions – now and later on.
