Turkey: one of the most feasible countries for entrepreneurship


Global entrepreneurship report is published by BNP Paribas. The report issued by BNP Paribas Wealth Management shed a light on Europe, Asia, United States of America and Middle East regions with sampling data taken from 17 different countries. The survey is participated by more than 2,500 ultra high wealthy individuals, and provided important data about both entrepreneur and angel investor roles. 

In Global Entrepreneurship Report of BNP Paribas, Turkey is shown among the most feasible countries for entrepreneurship, together with China and Hong Kong. All these three markets have a fairly high and valuable potential which may be used by entrepreneurs. It is further important to note that incentives for entrepreneurship are also relatively high in the named markets. 

According to this report prepared by BNP Paribas Wealth Management aiming to provide better service to its entrepreneur customers, angel investors are allocating up to 10% of their total assets to angel investments, which is the most important indicator of determinateness of angel investors in connection therewith. Entrepreneurship makes great contributions to both economy and welfare level, and support of entrepreneurship by investments is also a noteworthy development for the world in general. 

What is the profile of a successful entrepreneur transforming into an angel investor?

Entrepreneurs who accomplish in entrepreneurship and become an angel investor with the resulting assets have a fairly noteworthy profile. Entrepreneurs, composed of mostly men with an average age of 32, have in fact an entrepreneurship tradition inherited from family. These entrepreneurs have managed at least 5 companies, and are mostly active in finance, retail and technology fields. These entrepreneurs, allocating 9.4 percent of their total personal assets to angel investments, expect a return on investment of 28 percent. 

In Turkey, entrepreneurship is a family inheritance.

A proprietorship is seen in familial history of 60 percent of all wealthy investors. 75 percent of entrepreneurs in Taiwan, Spain, Poland and some Middle East countries, also including Turkey, have a family inheritance. Departing from this fact, it is also stated in the report that entrepreneurship is a family inheritance in Turkey.

Angel investors are mostly interested, and mostly investing, in entrepreneurships operating in financial services, retail and technology sectors. It can be said that angel investors have a higher concentration in Italy, Switzerland and Turkey. This means to say that angel investors are allocating a greater part of their total assets to angel investments in these countries. As said earlier, while angel investors spend an average of 9.4 percent of their total assets for angel investments, this rate is 10.6 percent, i.e. above the average, in Turkey. Shortly, in Turkey, angel investors are allocating more than 10 percent of their total assets to angel investments. 

Risk of angel investment is thought to be lower. 

Angel investment is perceived by angel investors as a low risky business. 77 percent of Turkish and 78 percent of German angel investors see angel investment as a low risk. This fact is based on the belief that angel investment has many advantages, and angel investors have the freedom to invest only in projects they like and believe. However, it is rather different in China, where angel investment is perceived as a more risky type of investment. 

It should be underlined that a general overview of the report and survey reveals the existence of a very positive atmosphere for angel investment ecosystem in Turkey. It is unequivocal that more and more entrepreneurs will transform into angel investors as time passes by.

Sami Eyidilli