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As the most eastern country in Europe and perhaps the most western country in the Middle East, Turkey presents promising immediate and long-term opportunities for American firms
As of present, Turkey’s economy is the sixteenth largest in the world and the sixth largest in Europe. This drives home the fact that Turkey is a high-growth market for many investments and businesses. Turkey’s recent growth record, its young and talented workforce, and its strategic location between Europe and Asia make the country a very attractive destination for growth and investment.
Turkey is a country that is located between Europe and Asia and its capital city and seat of power is Ankara. Istanbul is its largest city and it is considered by many as the commercial capital of Turkey. Turks are predominantly Muslims but they are considered liberal because of the religious views and lifestyle that is largely different from Muslims in the Middle East.
Turkey is known to be responsible for about 80% of the world’s hazelnut exports and it has the world’s 17th largest GDP by Purchasing Power Parity. Turkey’s economy is driven predominantly by the exporting sector with the automotive industry leading in this regard. Key exports from Turkey are hazelnut, Ships, oil and chemical vessels, consumer electronics and home appliances (with Beko and Vestel as the top brand), petrochemical products, textiles and processed foods et al.
The services sector accounted for about 65% of Turkey’s GDP, while the Agric sector accounted for about 26% but the Agric sector still remains one of the highest employers of labor in Turkey. Tourism is a major revenue generator for Turkey as a matter of fact; Turkey is ranked as the 6th most popular tourism destination in the world. The banking and the construction industry is also another major income generator for Turkey.
Turkey is vastly becoming a darling country for foreign investors since the government of Turkey has deemed it fit to reform the economy by privatization of government owned industries and also the liberalization of other key sector of the economy.
Best Small Business Investment Opportunities in Turkey
Being one of the main drivers of public and private investment, construction is one of the key sectors in Turkey. While there are many construction firms in the country, there are still many gaps in the environmental and energy infrastructures.
So, there are huge opportunities for investors in the construction sector. With a solid background in engineering or construction, you can flag off a construction business in Turkey. Better yet, you can start a business that sells raw materials used for construction.
Due to the huge entry barriers by state regulation, there are few telecom operators in Turkey. But there are huge opportunities in the provision of services, especially for integrators which subcontract these operators. This sector might be very difficult to explore, as the required startup capital is usually high.
Automotive and metal
Although, only 25% of the Turkish population have an own car, the consumerist middle class has been growing steadily since 2000. This represents huge potential in terms of domestic utilization of cars and automotives. Moreover, the automotive industry is lacking in suppliers for various kinds of automotive spare parts. So, if you can start a business that sells automotives or spare parts, you will make a lot of money in Turkey.
The various moves by the Turkish government in the last couple of years to achieve deregulation and privatization along with strategies to increase domestic demand for reliable energy has made Turkey a good place for energy investment. The energy sector in Turkey is one of those few sectors into which the government readily welcomes new investors. The government has declared that the sector needs an investment of about $130 billion by the year 2020.
Packaged fast foods
Due to the increasing number of women employed full-time, there is increased demand for packaged and processed meals and frozen foods as well as snacks. The food industry in Turkey has enjoyed steady growth over the recent years, and changes in consumer trends are making the market grow at more rapid rate.
The textile industry is one of the most important in the Turkish economy, representing about 10.8% of the GDP. Turkey is also known as a major producer of textile and the industry is open for more investors to come in. It is one of the leading sectors in terms of investment, employment, manufacturing, and macroeconomic indicators. So, there’s huge demand in Turkey for textile products.
If you are looking for a business to invest in, if you have the intention to come into Turkey as a big time investor; then you should consider establishing your own textile manufacturing company. The market for textiles that are manufactured in Turkey is indeed large.
The environment sector has, in recent, years become one of the priority sectors of the Turkish economy. Along with the rapid growth in population and industrialization come environmental problems that are far more than what the government alone could handle. So, there are huge opportunities for businesses that handle solid wastes and sewage and offer water treatment services. The Turkish government welcomes investors into this sector.
With over hundred varieties of natural stones like onyx, limestone, basalt, turf, granite, travertine, andesite, diabase, and slate, Turkey is the fourth largest producer of natural stone in the world. The country owns a whopping 40% of the world’s marble reserves. Unfortunately, Turkey has serious shortcomings in terms of expertise in mineral exploration and processing. This, of course, opens a door of opportunities for investors.
The demand for chemicals in Turkey is booming. For this reason, the chemical industry has enjoyed tremendous growth in recent years. The chemical industry in Turkey provides not only raw materials but also intermediate products to manufacturers of products such as leather, glass, textiles, and automobiles.
Turkey is ranked 6th among the most visited countries in the world and 9th in income generated from tourism. This statistic proves that tourism is a key sector of the country’s economy, which still has even more potential – thanks to Turkey’s natural beauty and rich cultural assets.
Hazelnut farming and exportation
Statistics has it that Turkey is responsible for about 80% of the world’s production and export of hazelnut. In case you don’t know what Hazelnut is, it is a sweet-flavored nut that grows easily in Turkey. It is also known as filberts. If you intend investing in the agric sector in Turkey, you should consider going into hazelnut farming and exportation since Turkey is one of the most fertile ground to grow this nut.
Electronics and Home Appliances Store
Turkey’s electronics and home appliances manufacturing industry is quickly gaining prominence in some European countries and in Asia simply because of brands like beko and vestel that has proven over time to be a strong competitors to world’s top electronics brands. If you start your own retailing of electronics and home appliances in any of the cities in Turkey, you will definitely make good profits in the business.
Petrochemical Production Company
The petrochemical industry is another thriving industry in Turkey and if you choose to establish your own Petrochemical Production Company in Turkey, your products will be widely accepted in the global market especially if you are known to produce products that meet up with world standards.
Financial Consultancy Services
The service industry is arguably the leading contributor to the GDP of Turkey with the financial sector taking the lead in this industry. If you are a financial expert, you can consider establishing your own financial consultancy business and you can be sure to have clients ranging from small scale enterprise to even large conglomerates depending on your track records and your business skills. This kind of business is indeed a lucrative one in Turkey.
Bureau de Change Business
The fact that Turkey is ranked as the 6th most popular tourists destination in the world means that any business that is geared towards servicing visitors will indeed thrive in Turkey. Bureau de Change is a very easy business to establish in Turkey and it is profitable because of the high volume of travelers and visitors that comes to Turkey. If you intend establishing your own Bureau de Change business, just ensure that you rent an office space that is within the airport premises or close to some of the top hotels in Turkey.
Specialized Catering Services for the Aviation Industry
This unique business is designed to only service the aviation industry and it is indeed a very profitable and thriving business that is still largely open to investors. The fact that most airline companies contract their catering services to vendors makes it open to all. If you are well positioned, then you will have enough airlines to service.
Cleaning Services Company (Specialize in Pre and Post Construction Cleaning):
The construction industry is another major contributor to the GDP of Turkey. If you don’t have the financial muscles to invest as a construction contractor, you can come into the industry as a specialized pre and post construction cleaning agency.
The major capital you have to spend to establish this kind of business is the money you’ll spend acquiring all the cleaning equipments and the good thing is that if you procure good equipments it would serve you for a long period. You can also add other cleaning services like public building cleaning, parks cleaning, amongst others, to your cleaning offerings.
Fixture and Automation Company
If you establish your own fixture and automation company in any of the cities in Turkey, and you are involved in mass production, you would have enough industry to service. You services would be highly needed in the automotive industry, the agric sector, railway sector and in most manufacturing companies.
Holiday Apartments and Booking Company
If you want to take your own share from the tourism industry, you may consider establishing your own holiday apartments and bookings company in Turkey. No doubt you would have enough clients patronizing your business if you are well positioned and if your facilities are affordable.