Market Related Issues

Market related issues touch upon elements related to the Turkish market, such as the competitive environment, the effects of COVID-19 and the employment quota.

5.3.1. Competition

Under the topic of competition, three fourths of the entrepreneurs, (9 out of 12) shared their experience with the competitive environment they met in the Turkish market. According to Mrs. Muhibaldeen, ‘competition is huge’ as she is in direct competition with various sectors, since she owns different activities in her business place including a cafe, hair salon, and

fitness. According to Mr. Kabbani, other companies have banks and resources at their disposal, while their company is dependent on just selling to customers that pay immediately, which made it difficult when they entered the Turkish market. Mr. Kabbani adds that they face difficulties because the Turkish government protects their own production and imposes the prices in their sector. However, he still sees potential in the Turkish market, since it is such a vast market.

Mr. Houbaity, owner of The Gardenia Residence, mentioned that competition in his field is tough, because when Turkish businessmen see how successful the sector is, they all move to that same sector. Mr. Alakkad, the owner of Totino Media, shared that unregistered companies provide cheap services, but only short-term. Furthermore, Mr. Mustafa states that copying a business due to its success is something that is also met in the Syrian community.

In his opinion, this attitude creates a mass saturation for businesses (appendix 22).

Additionally, Mr. Arabo from the Gaziantep Chamber of Commerce indicated that many Syrian businesses face difficulties in terms of competing with Turkish companies, since the latter are stronger and more developed than the Syrian ones. Nevertheless, the same interviewee revealed that the competition between Turkish and Syrian companies is not intense, since Syrian companies target other markets by exporting their products abroad. Mr.

Kabbani stated that they did not face so much competition, since they focused on Arabic speaking customers.

5.3.2. COVID-19

When asked about the effects COVID-19, Mr. Chouihna shared the following:

‘I’m stopped. My machines are stopped, we are taking care of some machines, and some assembling. I have many different parts of the products that are apart and I have to assemble them all together and send them. Also, counting my stock. Looking at the numbers. Like all companies do now. Like accepting the orders that related to the pharmaceutical businesses.’

(Mr. Chouihna – SaadPlast)

Other businesses (4 out of 12), such as the owners of Ay Nour Merkez, Soli Sweets, Gardenia Residence and Boutique Hotel Istanbul could feel the consequences of the global pandemic on their businesses. Two had to close their stores, due to the public fear of purchasing goods.

The remaining two entrepreneurs with boutique hotels faced cancellations.

Mr. Çoker explained that in order to give some assistance to entrepreneurs that could have difficulties following what was happening in the Turkish context due to COVID-19. As a result of language barriers, INGEV translated entire documents to Arabic and sent them on social media platforms so that Syrians could receive an update on the current circumstances taking place in Turkey (appendix 23).

5.3.3. Employment Quota

When asked about the flexibility of the employment quota, 2 out of 12 entrepreneurs mention that it is not an area they face difficulties in, since it was not required for their businesses.

Nonetheless, Mr. Nasher faced difficulties when trying to employ Syrians, since that indicated that he had to employ Turkish staff as well. As stated by Mr. Kadkoy from TEPAV, this quota was implemented to formalize the employment of Syrians, and adds that the quota is flexible. Mr. Hamwi stated the following:

‘This also relates to the ‘1 Syrian – 5 Turkish employees’ ratio that SIBA is against as it also involves Turkish being paid 3 times more in terms of salary compared to Syrians. Which is a rule that no company has been able to follow.'

(Mr. Hamwi - SIBA)

5.3.4. Sub-Conclusion - Market Related Issues

The Syrian refugee entrepreneurs faced challenges when it came to competition. Most entrepreneurs met a competitive environment in the Turkish market, some more than others.

1 The quota entails that 'The number of workers, working under temporary protection in a workplace, not

exceeding ten per cent of the Turkish citizens working in the same workplace constitutes the basis.' For instance, only 1 foreigner with temporary protection status may be employed, in a workplace that has less than 10 employees. (Amfori, 2016)

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.