Turkish Business Entities (Essay Sample)

Turkish Business Entities
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Abstract
The business world today is witnessing an historical rate of growth and development. Business activities have become the most important source of income for any individual or country as a whole. Most of the activities going on today around the world are business related. Basically, the human population has somehow devised a way to turn everything into a business opportunity. Governments and individual operators are working day and night to grow and sustain the business sector at high levels. It is a major source of employment in any country, and therefore a vital determinant of the living standards and economic growth. As a matter of fact, business is the backbone of any nation (Montessori, 1967). Business activities trace their origin from ages ago when batter trade was the main form of exchange. Drastic developments have taken place since then, with the introduction of money being the most significant. The developing world currently registers the highest percentage of growth in the business sector. Through local industries, foreign establishments and small scale entities, developing countries seem to believe that trade is the only way to development and economic prosperity. To a large extent, this notion is true. Turkey is one country that has established itself around the world as an all-time business center. This paper explores the types of business entities in Turkey, and the role of the government in the business sector as a whole.
Turkey can be fittingly classified as an emerging economy in the world. Its capital Istanbul hosted the International Business Forum in October last year, with a significant number of guests from Turkey itself. Primarily, there are two most common types of business entities in Turkey. These include the joint-stock companies and the limited liability companies.
Joint-stock companies
Such companies vary in terms of the fields of operation, scale, geographical situations and policies. However, they have basic common features as required by the Turkish government. They are owned by shareholders, with the liability of each shareholder being limited to the amount of capital he or she contributed.. Whether such a company is owned by Turkish nationals or foreigners, they are all regulated under the Capital Markets Law and the Turkish Commercial Code No 6102. All companies are strictly required to adhere to the contents of the above documents under whatever circumstances, contrary to which they can be sued under the Turkish law. A stock certificate is normally issued before the start of operations.
Limited liability companies
Limited liability companies are usually formed by a minimum of two and a maximum of fifty people. Just like the joint-stock ventures, the liability of each individual shareholder is limited to the share capital.
Apart from the above discussed common business types in Turkey, there are also other types of business ventures in the country. These include the commandite companies and the collective companies. A commandite company presents a more flexible business venture, as there in no minimum capital required to start such a company. It usually operates a business under a trade name, and some of its members have unlimited liability. The articles of association usually spell out the obligations, rights and roles of each shareholder. A collective company, on the other hand, also has no lower limit of capital when launching operations. It also has none of its members with limited liability, and it operates a business under a trade name.
Business ventures in Turkey are not limited to the above. There are widespread small scale enterprises all over the country that bring services and goods closer to the consumer. There are also corporations and consortiums established to cover up certain market niches. All business names must be in Turkish, and this is a general rule.
Government involvement
The Turkish government, for a long time, has been responsible for a stable economy in the country. Recently though, there has been a lot of upheavals as the lira currency continues to tumble. Most businessmen in Turkey are blaming the central bank for failing in its duties. The recently appointed governor of the Turkish central bank introduced a new policy of low interest. This policy is in conjunction with the ruling AK party’s resolution to uniformly build up and transform Turkey into an industrialized nation. Noticeably, under the AK party’s rule in the last eleven years, the real incomes for the greater percentage of Turks have risen by fifty percent. Previously, this remarkable transformation has seen the whole Turkish population rally behind the government, with the hope that pastures would be greener in the future. However, recent developments within the government have proven costly, as the business community is turning to criticize the central bank, a sign that the trust that the citizens had in the government is slowly starting to diminish.
In my opinion, there are other underlying factors that are contributing to this situation. Chiefly among these are the apparent political wars between the executive and the judiciary that stem from corruption cases. Top political figures in the country have been involved in corruption scandals in states projects, and this actually caused the resignation of three government ministers just a few weeks ago. Such scandals are really causing the depreciation of the lira against the international currencies, a trend which comes as a big obstruction to the government’s efforts of making Turkey an industrial power.
Some people argue that the prime minister has a record of good performance and building a strong economy. The real challenge is just a few, high level greedy leaders, who form a margin that frustrates all efforts to economic prosperity through corruption. From this perspective, the prime minister is not really to blame; but he is the government head, and therefore everything that happens within is view blamed on him. In fact, he terms the whole corruption probe as a conspiracy to bring down his government. Though, as sure as he may be right, he should consider the fact that it is happening, and the implications are lethal.
An increased rate of inflation is looming for the Islamic nation. Economists project that in the next few months, an inflation rate of ten percent might be reached, and it may even be worse if the lira currency continues to drop. It is an established fact that the corruption scandal gave rise to all of Turkey’s problems. The government, as a unit, is greatly hurting the economic growth of the country through this vice. The responsibility squarely lies in the hands of the prime minister, whose lower leaders may be betraying him, to polish up his government and strategize on the next move.
The trend
Generally over the years, the culture in Turkey has been formulating policies that attract foreign investments. To a large extend, this has been achieved, with Turkey being ranked as the fifteenth largest economy in the world. However, the government is now working hard on a new way of doing things. The main focus here has been instilling entrepreneurial culture in its young population (Terzic, 2013). There is a general intended transition, where more and more Turkish nationals will own and operate their own businesses instead of providing labor force to foreign establishments. Historically, this has not been the case. As the facts stand, more than seventy percent of the Turkish populace consists of people with less than thirty five years of age. The global community views Turkey as a country with a huge potential that has no really been tapped.
The new entrepreneurial desires that have arisen in the country did arise before. From the early 1990&rsquo...