Turkish family firms stronger than average
Some 33 percent of sales at family-run businesses in Turkey go toward external markets, a figure which is estimated to hit 40 percent in the next five years, says a recent PcW survey.Family businesses that sit at the heart of the Turkish economy stand stronger than their global peers despite unpleasant trade woes in developed markets, a recent PwC report showed.
Sales by Turkish family businesses increased 81 percent, substantially surpassing the global average of 65 percent, according to the “Family Business Survey 2012” of PwC, a global company providing industry-focused assurance, tax and advisory services. Only 9 percent of the participants from Turkey reported a fall in sales, while the global figure for family firms reporting falling sales was 19 percent, PwC said in a press release yesterday.
“Family businesses have a vital importance for the economy of Turkey and are an integral part of business life,” Eric Andrew, the Global Network Middle Market Leader at PwC, said.
Turkish companies are considerably less concerned in 2012 than they were in 2010, said Andrew. Only 36 percent of the Turkish respondents said they were worried about the economic situation, down from 56 percent in 2010. More than one in every 10 Turkish companies (12 percent) plan to expand their business aggressively and rapidly in the next five years, while 78 percent of them expect steady growth, exceeding the global average of 69 percent.
Turkish executives identified market conditions (37 percent), government policy and regulations (34 percent) and difficulties in external markets as the three main external issues. While the recruitment of skilled staff and labor shortages have become more acute challenges globally, this has become less of a concern for Turkish family businesses over the last two years. The ratio of executives who are concerned about skilled staff shortages receded to 23 percent from 44 percent in 2010. Yet keeping qualified employees is the top concern for 81 percent of Turkish family businesses, while the global figure is at just 46 percent.
Happy with support
“Only three markets [Singapore, Turkey and Malta] agree that their governments are doing everything they can to help them and there was overwhelming dissatisfaction from countries such,” the report said. Some 41 percent of Turkish respondents said the government supports family firms. However, the figure drops to 8 percent when it comes to “net agreement that your government is doing what it can to help businesses survive and develop their activities in the current economic climate.” Turkish family businesses have steered successfully through the past difficult period and have self-confidence for the future. Now Turkish family businesses are able to compete with leading firms of the world and do not hesitate to acquire them when appropriate,” said Mehmet Karakurt, the family a director at PwC Turkey.
The survey was conducted in more than 30 countries with 1952 family business executives, 99 of whom were from Turkey.