Why Set Up Business in Turkey?
Often referred to as the gateway between Europe, the Middle East and Central Asia, Turkey is a country that has plenty to offer investors. Apart from its sound economy, it also has a liberalised investment climate and good taxation regime. The Turkish economy reached USD 720 billion in 2015, up from USD 231 billion in 2002. The country boasts a promising economy with a bright future and is expected to become one of the fastest growing economies among the Organisation for Economic Co-operation and Development (OECD) members. It also has a dynamic and mature private sector with USD 144 billion worth of exports.
Apart from the encouraging economy, Turkey has many other advantages compared to other countries when it comes to setting up a business there. For one, if you set up a business in Turkey, chances are that you will not face as many strong competitors that you would elsewhere. The Turkish market is hungry for new and appealing ideas and this could serve as a huge advantage when it comes to setting up a new company. The people in Turkey are hungry for new designs and great service and if you meet the criteria, you will find yourself immediately standing out among the competition. Along with the booming economy comes strong consumer spending. The younger population simply adore great brands and new ideas and would not think twice about spending.
Trends and fashion quickly take off among youngsters and they love spending on whatever is new. Also, when you set up business in Turkey, you will find the retail prices for products are same or higher from what you would see in most other countries. Further, if you are successful enough to create a local brand that people love, you could have a high margin while pricing your product lower than the competition.
Largest youth population
Turkey has a population of about 78.7 million people and has the largest youth population compared with the European Union. As of 2015, half the population were under the age of 31. This young, well-educated and motivated professionals are an asset to labour productivity, with about 733,000 students graduating annually from over 193 universities. However, despite this, starting salaries and the cost of labour are still relatively low. Setting up a business in the United States of United Kingdom may cost you a fortune compared to Turkey.
Developed technological infrastructure
Another great opportunity lies with low-cost suppliers as there are a lot of capable generic suppliers who do not charge a premium for their products and services because they do not have brand equity. This creates a great cost advantage when sourcing products and services from them. Turkey also enjoys new and highly-developed technological infrastructure in transportation, telecommunications and energy, coupled with well-developed and low-cost sea transport facilities. This offers easy access to 1.6 billion customers in Europe, Eurasia, the Middle East and North Africa. The government also provides entrepreneurs highly competitive investment conditions and a strong industrial and service culture. Also, there is equal treatment for all investors and there are reportedly around 46,800 companies with international capital in the country.
There is also plenty of unpenetrated market and with the different cultures and way of living, you could well provides inspiration for ideas that could start there and go global. Apart from being a OECD member, Turkey has also enjoyed a customs union with the the EU since 1996 and Free Trade Agreements (FTA) with 27 countries. Other kickbacks from the government include a reduction in corporate income tax from 33 per cent to 20 per cent, tax benefits and incentives in Technology Development Zones, Industrial Zones and Free Zones and incentives for strategic investments, large-scale investments and regional investments
Increasing tourism numbers and revenues
Finally, Turkay has also taken great effort in increasing tourism numbers and revenues. It was once ranked the 8th most popular tourism destination in the world with 25 million international arrivals. With the high growth of international arrivals during the last decade, Turkey is set to become one of the top five most visited countries within five years. New, industrialised countries like Turkey provide very fertile ground for ideas and businesses. Though it may have been less attractive in the past, Turkey is now worth looking into as a destination for your new business. If you are looking to set up a business in Turkey, contact us.