Article by Semiha UNAL: “The fast development of Turkey astonishes Dutch entrepreneurs”

S4U gives consultation to Dutch entrepreneurs and investors in the Turkish market with her brand ‘Business Support Turkey’.

According to Semiha UNAL, the General Manager of  S4U Business Management Consultancy and Foreign Trade Ltd, the entrepreneurs and investors from Holland willing to invest in Turkey are very much surprised to find a very well developed Turkey. Adding to this, Unal says that Turkey has a big business potential for Dutch investors and entrepreneurs.

The high-technology, life sciences, agriculture & food, water management, innovations, creative sectors and the energy sector in The Netherlands are the subjects making The Netherlands a distinct country. Turkey has many opportunities in these sectors, according to Semiha Unal. “Besides this” Unal continues to mention “both countries being familiar with trade and having strong trade-bonds going on for centuries, between the two countries, provide the basics for successful cooperation in the future.

“We can look at things in different perspectives, because of our multicultural background”

Unal says “There are still Dutch investors and entrepreneurs not aware of the fast development and the opportunities in Turkey and there is need for a more effective way of informative activities. In 2012, I participated in the Holland-Turkey business forum which was organised during  the Turkish President Abdullah Gul’s visit to The Netherlands; I observed the big interest of Dutch companies in investing in Turkey. Being a member of the Dutch- Turkish Business Council of the Foreign Economic relations board (DEIK), I was invited to join the CEO Forum in The Hague, organised during Recep Tayyip Erdogan’s official visit to The Netherlands, in 2013.

The presentations held by the Turkish CEOs about the investments they had made and their future business plans got the Dutch firms quite excited but still there are also Dutch firms, who do not have any information about the business opportunities in Turkey. Every time I speak to people from The Netherlands who are in Istanbul for the first time, their observations are always very positive. They seem very surprised and state that they did not expect to find such a developed country.”

Unal brings forward that the importance of the positive observations of Dutch companies willing to invest in Turkey, regarding young and qualified labor force, attractive incentives, favorable government policies, a big market, strategic location and positive outlook.

However, Unal continues, the investors keep away when they do not have enough information about the legal system, the fluctuation in the local currency and knowledge about investments in Turkey. Dutch companies willing to undertake a business in Turkey have a few basic questions; Is there a market for the product or service the company provides and if so, what is the right approach to reach this market. Unal suggests that a detailed research has to be done before a decision is made to start business in Turkey. This research can be a cost-benefit analysis as well as a realistic profit forecast and will contribute to a general visibility study and a business plan which has to be made by every entrepreneur planning to start a business. There are also entrepreneurs who have already done their research and made a decision to invest in Turkey. S4U helps these entrepreneurs by guiding them regarding the entity to be set up, the location of their factory or their business and the forms and permissions they need.

Dutch companies who are looking for an inorganic growth by buying a local company or by combining several companies in Turkey come to S4U to be guided in the implementation of their business plans. Many companies find difficulties in doing business in an environment with a different culture. “Because of our knowledge of both the Dutch and the Turkish culture and our multicultural background we are able to see things in a different perspective. With this in mind, we provide excellent solutions to overcome the cultural problems doing business in Turkey. We offer a ‘Turkish Business Culture and Management Styles’ training for foreign managers (expats) and company owners doing business in and with Turkey” states Semiha UNAL.

UNAL continues to say “In the past 10 years The Netherlands have made an investment of 16.7 billion dollars’ After saying that, in the last 10 years The Netherlands were the number 1 investor in Turkey with 16.7 billion dollars. When we look at the number of international investment companies, The Netherlands with 2 thousand 139 companies is the biggest, after Germany. Along with Turkey’s stable economic growth there is a record of development in public finance.”

The overall national debt stock of Turkey defined by the European Union between the years 2002-2012 has gone down from 74% to 36.1% in 10 years. According to the criteria of EU-Maastricht the maximum allowable national debt stock is 60%. Meaning, that Turkey measures up to this policy since 2004. Likewise, with a decrease of a budget deficit from 10% to below 3% between the
years 2002-2012, Turkey has started to become a pioneer having a balanced budget, according to EU-Maastricht.

In 2012 the Gross Domestic Product of Turkey (GSYIH) has realised a growth of 300% in comparison to 2002, being 231 billion dollars in 2002 and 786 billon dollars in 2012. At the same time the national annual income per resident has increased from 3500 dollars to 10,504 dollars in the same period. The positive economical growth in Turkey also had a big influence on the export and the tourism revenues, with an increase from 36 billion dollars to 153 billion dollars for export and 8.5 billion dollars to 25 billion dollars for tourism between the years 2002-2012.

SEMİHA UNAL
General Manager
BUSINESSSUPPORTTURKEY.COM