World Economy is more and more globalized, but this does not mean that making
business in different countries always follows same rules. The cultures and traditions still
remain quite different, and same for laws, regulations, work conditions and life styles. Although
English is more and more accepted as a common business language, the linguistic barriers
are still there in many countries as a strong limitation against proper communications.
Making business in Turkey
A globalized economy still affected by a Babele Syndrome
In order to penetrate commercially a new country, a deep knowledge of the local reality is
therefore an important condition for success. Even more, when the aim is to set up local
establishments, like subsidiaries or production facilities, or to acquire already existing
companies. And, when local partners are involved,
like in Joint Ventures or Mergers, the capability to properly communicate with a different culture
becomes, under all aspects, a must.
The Turkish Market
Entering a new environment and culture
Making business in the West or in the East does not follow the same rules, as well as making business in the
Far East is different than making business in the Middle East.
And, within the Middle East, making business in Turkey is quite different than making business in Iran, Iraq, Syria......
Turkey has a fast growing economy made by a large number of middle / small companies ready to
invest and take heavy risks in a not much regulated, but profitable system.
Quite often investments are more the result of the beliefs and courage of
Turkish entrepreneurs than of a detailed analysis of expected returns.
In fact, considerations about honor, manners and prestige can easily
prevail over economical calculations. As they say here, Turks are ready to burn the blanket in order
to get rid of a flee. But they can make up
their mind quite fast, if you are able to present your project in a suitable way.
In a country with growing labor costs
and limited availability of raw materials, never ending negotiations on prices are
the consequence of the need to cut down costs of
productions largely aimed to export and, why not, also of the pleasure of negotiation
inherited by the Bazar times. However, generally,
availability of capital is much superior to expectations.
Besides capitals created by the fast growing economy, in the Turkish stock exchange and market
are, in fact, reinvested also profits deriving from quite diversified business of
close-by countries, like Iraq, Iran, Syria, Afghanistan, Russia etc.
When evaluating a Turkish business is better not to stop at the official Balance Sheet.
A lot of other considerations apply!