Ozlem ERMIS BEYHAN
TÜRKONFED, which has 30 federations and more than 300 associations under its roof, is starting a non-governmental organization-based development movement in the 100th anniversary of the Republic on the way of business people to Turkey. TÜRKONFED President Süleyman Sönmez said, “Despite all the impossibilities and recession expectations, there is a tremendous desire to invest in Anatolia, our potential is very high.” The Turkish Enterprise and Business Confederation (TÜRKONFED), Turkey’s largest independent business organization that came together on a voluntary basis, has accelerated its work with the aim of Turkey’s total development. In the 100th anniversary of the Republic, 81 meetings are planned in 81 provinces with 30 federations and more than 300 associations across Turkey. TÜRKONFED President Süleyman Sönmez said that their goal is to overcome the daily issues in the economy and to ensure that all of us look at the right place. Sönmez is hopeful because she looks at the future from Anatolia. He sees that business people in Anatolia have a great desire for investment. He explained: “We see a tremendous desire to invest in Anatolia. Despite the impossibility, despite the recession expectations… Our potential is very high. We are a very dynamic country, our business people are agile, flexible, pursuing production against every challenge.”
Let TOKİ build a factory, not a house
However, Anatolia has a lot of problems. TÜRKONFED President’s suggestions for solutions to problems reveal the pulse of the business world. There is an appetite for investment, but there are also major obstacles. For example, the land and construction costs to build a factory tie the hands of the business world. For this reason, Sönmez said, “Toki should build a factory instead of a house. Thus, production and employment will increase, and the level of income will increase. After the business people roll up their sleeves, 70 percent of the budget allocated for investment goes to the land and the factory. When it comes to buying machinery, it gets clogged up,” he said.
Extended loan terms
So, did the recently announced Credit Guarantee Fund (KGF) package meet the expectations of the business world, or will it solve the problem of access to finance? Sönmez said that 250 billion liras is a small but important loan opportunity for the Turkish economy. He explained that the financing problem of the business world should be considered in a longer term: “The average time from the decision stage to the completion of an investment is 2 years. New investment, capacity increase always takes time. However, when you start the repayment of the loan after 6 months, this has handicaps in terms of the business world. Investment loans should be longer-term. We have to develop the credit scale in a production-oriented manner.” TÜRKONFED President Süleyman Sönmez emphasized that the change in the system in which those who own land and those with capital can find loans will lead the country towards high value-added production. Sönmez said, “The minimum wage rate in Europe is only 7 percent. In Turkey, one out of two people is on minimum wage. When credits start flowing into value-added investment, the structure in which 50 percent of the workforce in Turkey earns minimum wage will also change. Then the issue of minimum wage falls off Turkey’s agenda.”
Green transformation must be financed
Sönmez reveals that green transformation is not a risk but a great opportunity for Turkey. With this vision, TÜRKONFED started training and establishing green transformation centers all over Anatolia. The goal is to first explain the need for green transformation to SMEs and then draw a roadmap. But here, too, the path comes and gets stuck in financing. TÜRKONFED President said that it is necessary to move from discourse to action: “Green investments should be prioritized. SMEs should be supported for green transformation financing.”
Turkey in the dream of the business world
TÜRKONFED said, “We will reach the Turkey of our dreams by working together, producing and sharing together with our 85 million people”, and revealed the picture of the imagined Turkey as follows: It has initiated an economic breakthrough compatible with the Earth and green transformation; Rebuilt the social, secular and democratic state of law; It put the separation of powers, balance and control mechanisms in their place; Established the full independence of the judiciary; became a member of the European Union; He made the new and civil constitution of the new period with social and political compromises; It has increased the belief in the rule of law, achieved a strong social transformation with the will to live together, developed policies sensitive to gender equality, and achieved the consensus of a society-state without discrimination, marginalization and polarization; Institutionalized and guaranteed the right to a dignified life; We dream of a Turkey that has become one of the global pioneers of policies to combat injustice and poverty.
In its 100th year, it launches a development move in 81 provinces of Anatolia
TÜRKONFED President Süleyman Sönmez said, “In this period of increasing global risks, we have two important advantages as a country: Our flexible business world, which has a strong immune system against crises, and our production power in Anatolia… Our development path from local to global passes through Anatolia, our SMEs” said. Based on all these considerations, TÜRKONFED held the ‘100. He started a project called ‘Year Meetings’. Sönmez explained the details of the project as follows: “Within the scope of this project, which we will start from Bandırma, we are planning to organize a series of events under the name of 100th Anniversary Meetings in 81 provinces under the responsibility of our 26 regional federations, wherever there are 26 development agencies. As we enter the second century, our goal is to present TÜRKONFED’s New Era New Horizons vision document, to share our dream Turkey; To contribute to the bright future of our country on the ground of reconciliation with common mind. In this context, we will ask all our federations and associations to develop projects that will create value for their regions and the country. Our biggest goal is to increase our projects from digitalization to green transformation, from entrepreneurship to youth and women, from democracy to local development, which will activate the development dynamics of Anatolia, through inclusive and participatory collaborations within the scope of the 100th Anniversary Meetings. “
“The rate of those who have problems in accessing credit has reached 90%, KGF only relieves it a bit”
TÜRKONFED regularly measures the pulse of the business world with the participation of 30 federations and more than 300 associations every quarter. TÜRKONFED President Süleyman Sönmez, who said that the survey results for the last quarter have just arrived, explained the troubles of the Anatolian business world by considering these latest results as follows: “84 percent of TÜRKONFED members stated that they had problems in accessing finance throughout 2022. 80 percent said access to finance became more difficult in the second six months of 2022. 77% think that financial risks will increase. The ratio of those who have problems in accessing credit is 90 percent. Due to the low interest policy applied, the gap between the policy rate and the real interest rate widens. The decrease in banks’ appetite for lending in the last 3 months has clearly reflected on the private sector. KGF loans will pave the way for our businesses, especially our SMEs, which have working capital problems and long-term financing problems, and will act as a lifeline in difficult times. However, we should not forget that our national income is estimated to reach 13.5 trillion TL by the end of 2022. Therefore, the 250 billion TL KGF package; It will only be able to relieve businesses under the pressure of decreasing orders and wage and EYT costs. The increase in energy and producer prices also raises costs. We usually focus on exports, but these needs actually bring the possibility of difficulties in imports and production.”
It seems impossible to get out of the inflation cycle
According to the TÜRKONFED President, inflation will continue to be the priority agenda of our country in 2023, as it was in 2022. Sönmez said, “It seems impossible to get rid of the inflation cycle in the context of the current monetary policy regime and the economic policy objectives of the economy management. With an optimistic view, we enter an inflation path that fluctuates between 30-70%. In such a scenario, it seems difficult for our country to exit without realizing a permanent treatment and reform agenda within the framework of economics.”
There is no development without women.
TÜRKONFED President Süleyman Sönmez said that it is not possible for a country to develop without women. “Women are the first priority. Our women in Anatolia are creating impressive success stories. This is also very important in this respect, these role models give and motivate other women who follow them with the feeling of “He did it, I can do it, he succeeded, and I can do it too”. Sönmez underlined that as TÜRKONFED, they specifically support women’s entrepreneurship.
First interview with Nezih Demirkent…
TÜRKONFED President Süleyman Sönmez is a businessman who has devoted himself to civil society activities since the first time he entered his business life. Sönmez explained that DÜNYA Newspaper has a special importance for him: “When I was still very young, while I was serving as the Vice President of Adana Young Businessmen Association, I made my first interview with the late Nezih Demirkent, the founder of DÜNYA Newspaper. DÜNYA Newspaper has always been a supporter of business people in Anatolia, it has been a newspaper that we stand by with confidence”.
A professional writer by day, a tech-nerd by night, with a love for all things money.