EDITORIAL FEATURE
Doing Business in Turkey
By Ludmila (Mila) Rusakova Golovine
The country’s economy is growing at such
speed that it is beginning to rival Brazil,
Russia, India, and
China, the celebrated
top emerging
economies. In fact,
some have even
dubbed Turkey, “the
China of
Europe.” Moreover,
the country is positioned to become an
even bigger powerhouse. It is one of
the great crossroads
countries of the world.
I
f one wanted to find a suitable country in
which to do business which was set to burst
onto the world scene, it would be difficult to
find a better candidate than Turkey. Since its
2001 financial crisis, the country’s economy has
done exceptionally well. The numbers speak for
themselves. Between 2002 and 2008, the country’s economy grew at an annual rate of 5.8 percent while during the same period the European
Union grew at only 1.8 percent. By 2010, the Turkish economy was valued at $729 billion making it
the 16th economy in the world.
The country’s economy is growing at such
speed that it is beginning to rival Brazil, Russia,
India, and China, the celebrated top emerging
economies. In fact, some have even dubbed Turkey, “the China of Europe.” Moreover, the country
is positioned to become an even bigger powerhouse. It is one of the great crossroads countries
of the world. It is literally divided between two
continents, Europe and Asia. Consequently, it is
set to become a larger transit hub for both goods
and natural resources between Europe, Asia, and
the Middle East. Some economists have predicted that by 2050 Turkey could become the 10th
economic power in the world. This situation offers great promise to those seeking a country in
which to do business. However, without proper
cultural preparation, it will all be for naught.
The most important aspect that distinguishes Turkish business culture and that of America is the importance of the relationship. While
Americans focus on figures and contractual
obligations, Turkish people tend to concentrate on the character of the person with whom
they are dealing. Quite simply, they will not do
business with someone they do not know and
trust. This aspect usually frustrates Americans
because it slows down business negotiations
and deals. This situation usually occurs in meetings. Initial business meetings hardly ever concern the actual deal or proposal. It is at this stage
14 SMALL BUSINESS TODAY MAGAZINE [ JUNE / JULY 2015 ]
that the Turkish counterpart will want to get to
know the American counterpart. Although this
may be frustrating, it is important to maintain
patience and allow the process to advance accordingly.
Conversation is the best way to put your Turkish counterpart at ease. Certain topics of conversation are good while others are taboo. Family is always a good subject; however, it is best
to talk about children and not spouses. Sports
are also good topics. Football, or soccer as it is
known in the US, is immensely popular in Turkey
so it would be good to be familiar with the local
teams. This type of knowledge will impress your
Turkish counterpart. As a general rule, religion
should not be discussed. It is nearly impossible
to know how your counterpart will react so it is
best to avoid this subject. Turkish history is a
good topic but requires caution as some Turkish
historical events have been controversial. The
Turkish people enjoy talking about their history
but it is best to let the HXY H