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Making business in Turkey

'the Babele Tower' by Bruegel

A globalized economy still affected by a Babele Syndrome

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.

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

Golden Horn view in 1836

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!



Mustafa Kemal Ataturk satellite image of Turkey Turkish Flag




Our History and curriculum International Partners Marketing Division Joint Ventures / M&A Management Consulting Making business in Turkey Presentation Italchem 2008 contacts