Entrepreneurs speak out - Ernst & Young - Serbia

Founded in 1988, Turkish “fast-fashion” brand Koton has 350 stores in 25 European, Middle Eastern and Asian countries. Husband-and-wife team Yılmaz and Gülden Yılmaz have grown the company by, on average, 30% a year.

“Research from Babson College shows that, in 2008, Turkey had a 6% entrepreneurship rate. This increased to 8.6% in 2010, which is an improvement, but still very low given that 52% of Turkish people are below the age of 29. We would like to see more women entrepreneurs too: out of Turkey’s 1.3 million entrepreneurs, only 8,000 are women.

There are a number of things that need to happen to encourage young entrepreneurs. First, the tax system needs to support them. Six or seven years ago, corporation tax was decreased to 20%, but there have been no other improvements since then. The Government should also encourage more angel investors and seed funds, which could also act as mentors.

There need to be some policy changes. For example, there is a law preventing college professors from starting their own companies. Innovation comes out of universities, so scientists need to be able to work outside these institutions as well.

Overall, the culture of entrepreneurship is still new in Turkey. Taking a government job is seen as a safer, steadier way to start your career. Through educating young people and providing role models, this perception can change.”

Founded in 1999, Poit Energia provides temporary solutions for infrastructure and engineering projects. Founder, Wilson Poit, describes the landscape for people setting up new businesses in Brazil.

“Brazil has institutional credit facilities for machinery and equipment, but it requires persistence to get past the red tape. I would like to see Brazil’s National Development Bank create a credit line dedicated to smaller companies — similar to one that already exists for the narrower category of new technology and innovation — with appropriate backing from multilateral lenders such as the World Bank.

Brazilian entrepreneurs would also benefit if the tax and corporate financing systems were simplified.

I found that building up good relations with suppliers and winning the confidence of angel capitalists were the most important elements for accessing early phase credit. Coordinated support is particularly important in guiding entrepreneurs toward good practice in preparation for presenting to investors.

This professionalization is all the more important given that there is still skepticism in Brazil about whether entrepreneurs can enrich themselves ethically. However, perceptions of entrepreneurs are shifting to someone who generates jobs and pays his taxes in pursuit of a legitimate career option.

Success stories begin to be seen as just that, encouraging new entrepreneurs to chase bigger dreams. Presenting and publicizing these examples — through university visits, for example — is a powerful tool for encouraging smaller companies to pursue growth.”

Founded by Sandra Le Grand in 2000, Canalce offers teamwork programs, employment law advice, software and employee incentive programs to its corporate clients across France. Sandra is a strong supporter of entrepreneurs in France, particularly women.

“In France, entrepreneurs are portrayed as future sources of employment, so people see them in a positive light. There is a lot of media coverage, and people are interested in the entrepreneurial process, particularly in a time of high unemployment.

I believe that business angels are the way forward for young entrepreneurs. Our funding came from business angels, and then venture capitalists, which was helpful given that banks in France tend to be conservative when it comes to funding start-ups. Business angels also provide networking support, which is invaluable when you’re just starting out. <:p>

The French tax system offers support for entrepreneurs, in the form of tax deferrals and legislation that encourages investment by business angels. I would like to see more stability in the tax system — we can’t be sure that things will be the same from one year to the next.

Germany is a good role model for France, as it is good at encouraging its SMEs to grow. Part of this may be getting big companies to act as mentors to smaller ones, as well as support from the Government. I think we could learn a lot from Germany.”