Finance

In one case, entrepreneurs faced challenges since they did not have the same access to capital as Turkish businesses, giving them a slower start. Moreover, this business faced competition with the Turkish government which meant that they were dependent on the prices the government imposed in that specific sector. However, an organization shared that Syrians have the tendency to enter the same field creating a mass saturation. Another organization shared that competition could also be encountered since Turkish companies were more developed than the Syrian ones. Finally, some Syrian companies did not face the same amount of competition since they focused on Arabic speaking clients.

A circumstantial barrier resulting from the effects of the COVID-19 on the entrepreneurs' companies, was of them being forced to ‘close’ down their businesses. Others have tried to work around it by becoming more flexible and developing administrative tasks which keeps the business ‘tidy’ such as doing the inventory or keeping up with financial statements. An organization shared translated documents on social media to keep Syrians updated on what was taking place in Turkey.

The Employment quota has shown to have a mixture of experiences. Some entrepreneurs shared that the quota was not required for their businesses, while others have in the engagement of their entrepreneurial activities had to keep up with this quota. It was observed that it presented a financial barrier, since following this rule implied a difference in the salaries paid to the Turkish and Syrian employees. As well as one related to having to employ 5 Turkish employees for every Syrian employee.

‘In Syria we were not that connected with banks, maybe because we have that Islamic rule – we don’t take much money from the banks, we don’t use checks. So, we are working on the opposite of the bank you could say, if you get my idea. Uh, they have money from banks, but we have only our money.’

(Mr. Kabbani - Horizon Plastik Kimya)

Mr. Hayrullah has also explained how some business owners in Syria were not used to interacting with the banks, which resulted in them reaching out to the black market. Whereas in Turkey they are faced with a different context. Despite the religious aspect, two entrepreneurs have shown to have quickly understood the importance of the role of the bank system to their import/export business. Mr. Hayrullah has acknowledged the difference between Syria and Turkey regarding the banking aspect. To him, in Syria, the bank’s involvement in business was not of a high degree. Whereas, conducting business in Turkey has made banks one of the main aspects to his entrepreneurial activities. Most of the entrepreneurs have expressed the difficulties of opening bank accounts. These range from the discrimination experienced, to the difficulties in the administrative process and finally, the lack of flexibility in transferring sums of money when needed.

‘Usually banks are not allowed to open USD accounts for Syrian people. It is according to international law. However, the banks regulations don't mention anything about Syrian people living outside of Syria, so the banks still open accounts for Syrian.(...)'They do seek loans. But they get rejected. Had the banks allowed that, they would have done it.'

(Mr. Hamwi - SIBA)

Mr. Kadkoy defines the banking sector to be one representing the highest barrier for Syrian entrepreneurs due to the discrimination they face. He points out the difference in the management system in different branches of one same bank and how entrepreneurs' success in opening an account often depends on the manager they are faced with. Furthermore, looking into the rights of Syrians when facing the banking sector, many have expressed confusion around their status as Syrians, limiting them from accessing the basic services

banks offer, such as acquiring a card. A few entrepreneurs (3 out of 12) have shared having to wait over a year in order to receive a card from the bank. From the information they shared, it was observed that these limitations set by the banking sector in Turkey have had consequences on businesses involved in export activities. Due to the inability to conduct money transfers, Mr. Chouihna has experienced having his goods stuck in Tunisia for two weeks adding extra costs and forcing him to leave his current bank to find one that was located in both Tunisia and Turkey in order to finalize his transfer.

5.4.2. Taxation

When asked about the taxes being paid, entrepreneurs have shown to have different experiences. Mrs. Muhibaldeen has expressed taxes to be paid being too high regardless of the profit made, due to the extra costs that have to be covered, such as rent and utilities including electricity, water and internet. Nonetheless, other entrepreneurs have deemed it to be reasonable. During the interviews conducted, Mr. Habob from Turk Indirim has for instance expressed the level of the taxes not being ‘that high’. However, he did recognize that given the income made, the taxes to pay could become more significant (appendix 12).

This is further supported by organizations stating that the taxes are not significantly high. It has been pointed out by Mr. Arabo from the Gaziantep Chamber of Commerce that there is a lack of familiarity to the tax system from Syrian entrepreneurs and businessmen. According to him, the tax system in Syria is very little present whereas businesses in Turkey have different kinds of taxes applied to them. The tax familiarity is further illustrated by the entrepreneur, Mr. Hayrullah. He acknowledges the taxes being a new element for Syrians.

He further describes Syria as having a very complicated tax system but also lacking regulations. This resulted in him having to use the means of negotiation with governmental employees in order to reduce the taxes given by the Syrian government, when conducting business in Syria. Mr. Hayrullah also compares the business behavior to the one used in Turkey where he has acquired a sort of acceptance and understanding to the way the system worked in Turkey. According to him, once there is an ongoing process of legal and financial literacy, the hardship will lessen.

Mrs. Çam shared the following perspective about the Turkish tax system:

‘It is the same as for Turks. It is not difficult for Turks nor Syrians. Syrians say that it is difficult in Turkey because they have to pay more or because they didn’t used to pay taxes before. The taxation depends on the sector, it can be anywhere between 8% to 18%, or higher, it depends.’

(Mrs. Çam - Mersin Chamber of Commerce)

The entrepreneurs interviewed have expressed how the lack of understanding of the Turkish law, additionally to the communication gap that is often encountered with their advisors, has led to some having to pay a heavy price, due to tax payment delays. This is the case of Mr.

Kabbani who states:

‘So, these, plus the taxation rules and the governmental rules made it difficult for us to know what to do to have a normal company. What to pay, what not to pay, the penalties after missing a payment, you can’t think for your trait or your factory process, how to work and at the same time you have to think about the rules, about the taxes about what you have to pay for the government not penalize you for things you didn’t do. So, it was hard to pass between these two points at the beginning. (...) The first two years we had one of our trading company, we are paying taxes and we have the chance to get the added value taxes back.

We had the chance to get them back, but we didn’t know this. Right after we learnt this information the period in which we could get them back was over. It was over 30,000 USD for two years' taxes.’

(Mr. Kabbani - Horizon Plastik Kimya)

Moreover, Mr. Nasher adds an example of how he is lacking a proper overview on the taxes paid. He states not knowing when he pays high taxes, and that his accountant is not attentive to these details. He comments on how no solution is found and that he has to pay every single time. According to Mr. Nasher, there is a lack of help and solutions, and when facing an issue his accountant tells him to pay instead of seeking a solution. Some entrepreneurs such

as Mr. Hayrullah can see this challenge as an opportunity to learn and take advantage of their tax consultant, to learn more about the system. This aspect has mostly been raised by entrepreneurs who carry import and export activities to and from foreign countries. This also raises the importance of complying to the European Standards when wanting to export to a European country, as mentioned by Mr. Chouihna.

5.4.3. Sub-Conclusion - Financial Challenge

The entrepreneurs shared the negative experiences they had with banks in Turkey. For instance, some entrepreneurs had a certain perspective towards banks due to their religious beliefs, which resulted in them avoiding having contact with banks. Other experiences had to do with how they were treated by banks, which according to an organization is a behavior that could have something to do with the given manager of a bank. Moreover, this treatment created confusion for some entrepreneurs on their rights when it came to banks and their services. It was observed that these experiences with banks could have a negative effect on the entrepreneurs companies.

In terms of taxation, Syrian entrepreneurs in the Turkish context have had to adjust to the new taxation system, since they did not have as much experience with taxes from Syria.

Additionally, due to this new scenario, many entrepreneurs shared their lack of understanding of the Turkish tax system. Some entrepreneurs expressed that the taxes were too high, while others felt the opposite. As a result, some lean to their accountants to help them with this area. Nonetheless, in some cases these accountants or advisors would not help with the given issue which led to a loss of money. Finally, some entrepreneurs saw their challenge towards Turkish taxes as a way to learn more about the system and be able to be independent from an accountant.