The report studies companies that doubled their turnover or number of employees in the last five years, and points out that companies which made the greatest leap were the most technology-intensive.
The "Leaping Companies" report issued by Sabancı University - TÜSİAD Competition Forum as part of the TÜSİAD SMB Working Group activities was presented at the TÜSİAD Head Office on Tuesday, April 3.
Introductory remarks were delivered by TÜSİAD Board of Directors Chair Erol Bilecik and Minister of Science, Industry and Technology Dr. Faruk Özlü. TÜSİAD Board of Directors Chair Erol Bilecik said: “Although the small and medium businesses in Turkey are above OECD averages in terms of share in employment and total number of enterprises, they are far below the average in terms of creating added value. This proves that we still have significant improvement opportunities. We need companies that will be the driving force behind economic and social development, and improve workforce efficiency to the next level. Turkish industry should train with SMBs to make a leap itself. Because ‘Meeting an opportunity when prepared is the springboard called luck’."
Bilecik also pointed out the importance of thinking on what else may be done, including incentive policies, to improve the quality of exports and the value created.
Following introductory remarks by TÜSİAD Chair Erol Bilecik, TÜSİAD-Sabancı University Competition Forum Director Associate Professor İzak Atiyas and Bahçeşehir University Center for Economic and Social Studies (BETAM) Senior Researcher Associate Professor Ozan Bakış presented the Leaping Companies Report in a session facilitated by TÜSİAD Chief Economist Dr. Zümrüt İmamoğlu.
The Leaping Companies report focuses on the growth, efficiency and export indicators of companies that have advanced to the next level through rapid growth. According to report criteria, companies that have doubled their turnover or number of employees in the last five years, or attained the status of "large company" at the end of five years are considered Leaping Companies.
Leaping companies employ more
The report shows that most of the "leaping companies" are in the manufacturing sector, followed by wholesale and retail trade. The majority of leaping companies are located in Istanbul and Ankara, and the "leap" improves total factor efficiency in companies. Companies that have doubled their turnover or number of employees in the last five years are also shown to employ more people. An important finding is that the ratio of information-based capital investments in the total investments of leaping companies is greater compared to companies that do not achieve the leap.
Turnover leaps in companies that are the most technology-intensive
The report reveals that companies which have achieved leaps in turnover are the most technology-intensive companies. The study shows that efficiency, export-orientation and quality of exports all increase when making the leap, which also improves the survivability of companies. Another noteworthy issue is that older companies have better chances at making a leap due to easier access to funding.
The presentation of the report was followed by a "Leaping Companies Review Session" moderated by KOSGEB Chair Professor Cevahir Uzkurt. Analyzing the success of leaping companies were Bilgi University Professor of Economics Asaf Savaş Akat, Koç University Professor of Economics and Business Kamil Yılmaz, TÜRKONFED Economy Advisor Pelin Yenigün Dilek, and UNDP Representative Nejat Doğan. The event concluded with remarks by TÜSİAD SMB Working Group Chair Burak Özaydemir.
The “Leaping Companies” report is available here.