However it seems that Turkish society likes using value judgments without supporting them with concrete figures and numbers. In other words, less concrete facts with more generalization and judgments are a preferred way of discussion. This should be seen an indicator of Turkey’s level of modernization and industrial culture since these two things require concrete measurements and systematic evaluation of stated problems.
Those who use this assertion have an implicit view that structural transformation, global integration and the related government policies have not been helpful for the Turkish economy since the crisis of 2001.
Before attempting to discuss the validity of this argument, let me briefly note the nature of recent events that have led to this deep discontent in society.
Last month the İstanbul Chamber of Industry (İSO) announced the Second-Largest 500 Companies in Turkey, or those ranked 500-1,000 in a list of the nation’s biggest companies. In my opinion, we are better off looking at this category rather than at the Largest 500 Companies in order to understand the nature of Turkey’s business environment, since the focal point of stiff competition has shifted to these somewhat smaller companies.
According to İSO statistics, more than 50 companies lost their positions in the first category, or largest 500, and moved down to the second category. Additionally, there are some firms in the second category that leapt up as much as 360 spots from the 2006 rankings. Another interesting observation is that almost 110 companies have been included in the second category for the first time.
How do we correctly interpret this picture? For me this coin has two sides. We understand from the given data that competition is getting so difficult that there is no guarantee of preserving our positions in this competitive world. In other words, a Darwinian “survival of the fittest” has become the rule of the game, even in Turkey.
Obviously this sums up only one aspect of reality. On the flip side there is a more optimistic picture. The same data show that companies can radically change their fate and be successful, provided that their owners understand the problem and take the necessary steps.
Therefore there are both many opportunities and threats in this world of cutthroat competition. We are to minimize our risks and maximize our competitive advantages. This is a job to be repeated systematically throughout our business life, surrounded by dynamic changes.
As a matter of fact this is what is happening in Turkey now. There are several firms likely to be liquidated very soon, however there are also many new entrants into business life that are more competitive in Turkey’s radically and structurally changing environment. Therefore if businessmen look only at threats and ignore the chances open to them, this will certainly be an inappropriate adjustment and irrational attitude toward the coming challenges.
Now we are ready for the newly established and liquidated companies in the first eight months of 2007. According the latest numbers from the Turkish Statistics Institute (Turkstat), more than 38,000 new firms have been established while around 6,700 firms closed down. This marks a 3.2 percent increase in the number of newly established firms compared to the same period in 2006. For every one firm liquidated, more than six were established. The Turkstat figures also underline that new companies injected more that YTL 8.7 billion into the economy and only YTL 40 million was lost because of liquidated companies.
Let me then conclude that, yes, Turkish companies are being closed down one by one, but new companies are being established six by six. It is up to you then to determine whether you are in the right industry and doing your business in the best way.
