SBTM Jul 2015 - Page 16

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 HXYH