GLOBAL ENTREPRENEURSHIP PROGRAM TURKEY

Transcription

1 GLOBAL ENTREPRENEURSHIP PROGRAM TURKEY Activity Report

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3 FOREWORD The Global Entrepreneurship Program Turkey (GEP Turkey) is a joint effort between the U.S. Department of State, the Union of Turkish Chambers of Commerce (TOBB) and the Economic Policy Research Foundation of Turkey (TEPAV). The objective of GEP Turkey is to bolster the entrepreneurship ecosystem in Turkey. To this end, GEP Turkey partners with an extensive list of organizations from the private sector, civil society, and academia within Turkey and U.S. Launched in June 2011, GEP Turkey organized a series of events in the last year-and-a-half. Our tent pole event was an Entrepreneurship Delegation of 15 prominent American earlystage investors and entrepreneurs who visited Turkey for four days, and --along with their 8 Turkish peers-- judged 32 finalists who participated in a Showcase of Turkey s Best of the Best Entrepreneurs. In addition to Showcase finalists, Delegates met with around 100 other entrepreneurs and started long-lasting mentorship and investment linkages with Turkish investors and entrepreneurs. Deputy Prime Minister Ali Babacan announced Showcase winners, and the Delegation participated in an entrepreneurship policy meeting with President Abdullah Gul..GEP Turkey also took a high profile role in the Second Global Summit on Entrepreneurship in Istanbul in December 2011, hosted by Prime Minister Erdogan and attended by U.S. Vice-President Biden. This report summarizes both of these events, as well as other GEP Turkey activities, including journalism workshops, Start-up Weekends, local eco-system strategy documents, and other conferences. We are grateful to all of our sponsors and partners that contributed to these activities and look forward to continuing working with you on upcoming projects. TEPAV has a dual role of leading and coordinating GEP Turkey and more broadly, providing thought leadership on economic development policy in Turkey. Because of these dual roles with respect to entrepreneurship and policy development, TEPAV has spearheaded a number of policy dialogues in Turkey that have contributed to some new entrepreneurship policy initiatives by the Government of Turkey, which are also highlighted in this report. TEPAV also convenes a Conference on Entrepreneurship Policies in November 2012 as a part of the Global Entrepreneurship Week, of which TEPAV is a lead partner. 3

4 The entire GEP Turkey program exists only through the vision and leadership of TOBB and its President Rifat Hisarciklioglu. GEP Turkey has greatly benefited from the continuing support of two key TOBB councils, TOBB Young Entrepreneurs Board chaired by Ali Sabanci, and TOBB Venture Capital Industry Assembly chaired by Goktekin Dincerler. TEPAV runs the Entrepreneur-in-Residence office and manages operations of GEP Turkey. GEP Turkey owes its existence to the support of TEPAV management and staff, and in particular to advice and encouragement by TEPAV Managing Director Guven Sak. The U.S. Embassy in Turkey, led by Ambassador Francis Ricciardone, Economic Counselor Laird Treiber and Economic Officer Tom Coleman, have also provided invaluable assistance and leadership. The GEP Program of the U.S. State Department was launched by U.S. President Barack Obama at the first Global Summit on Entrepreneurship in 2010 in Washington D.C., and Turkey has been the third country after Egypt and Indonesia. GEP was started under the leadership of U.S. State Department Special Representative for Commercial and Business Affairs Lorraine Hariton. Senior Advisor on Entrepreneurship Shelly Porges currently heads up GEP worldwide. Steven Koltai was GEP s first manager. He left the State Department in September 2011 but continued through his own consulting firm, Koltai & Company, LLC, to provide critical advisory to GEP Turkey and helped organize some of our key programs. On the working level, the day to day operations of GEP Turkey would never have been possible without the tireless efforts of Damla Ozdemir, Beril Benli, Nihan Siriklioglu, Anil Ozen, and Selin Kiral. I am deeply indebted to each of them. Most importantly, I thank the entrepreneurs, investors and others who have not only worked with us but inspired us to work even harder in the coming years to make Turkey one of the shining stars of entrepreneurship worldwide. Thanks and best regards, Ussal Sahbaz GEP Turkey Entrepreneur-in-Residence 4

5 PARTNERS 5

6 SPONSORS (2012) 6

7 PRAISE FOR GEP TURKEY (Entrepreneurship Delegation) This Delegation sets a benchmark for events on entrepreneurship in Turkey! Emre Kurttepeli, Chairman of Mynet Group and Galata Business Angels Network Meeting the amazing people on the delegation and hearing and meeting the energetic Turkish entrepreneurs made the week a truly worthwhile and once in a lifetime experience! Jim Boettcher, Founding Partner of Focus Ventures This delegation was both productive and inspiring. We are all excited to stay in touch both with the Turkish entrepreneurs and investors we met -- as well as with each other. Diane Hessan, President and CEO of Communispace I am confident I will invest in and mentor at least one company out of this trip. I have met with local investors and have started to look at least 7 companies. These are all with local investors and part of their existing portfolio. Faysail Sohail, General Partner at CMEA Ventures Two years ago, we would have had only clone companies and e-commerce companies. For the first time, I have experienced a big variety of industries. It s an indication of the change in the Turkish entrepreneurial culture. Sina Afra, Co-Founder and CEO of Markafoni I think the local technical talent stakes up against any of their colleagues at MIT, Stanford and Carnegie Mellon. It s absolutely cutting edge That was very surprising it was not what I expected at all. Saad Khan, Partner of CMEA Capital 7

8 TEAM USSAL ŞAHBAZ / Entrepreneur-in-Residence Ussal Sahbaz is an adviser to the executive director of the Economic Policy Research Foundation of Turkey (TEPAV). In this capacity, among other things, he coordinates the Turkey office of the Global Entrepreneurship Program. Ussal also advises the recently established TOBB Venture Capital Sectoral Assembly (TOBB Girisim Sermayesi Sektor Meclisi), an industry council to foster policy dialogue on private equity, venture capital and angel investing. Ussal Sahbaz graduated from Harvard Kennedy School with a master s degree in public administration and international development. His thesis on public policies to foster venture capital in Turkey got honorable mention award. He worked as a consultant to the World Bank in Washington D.C. He also worked as a competition economist at Turkish Competition Authority. A native of Ankara, Ussal holds a BS degree from the Middle East Technical University and an MA from Bilkent University, both in economics. İpek Beril Benli İpek Beril Benli holds a BSc degree in Economics and an MA degree in Law & Economics from Bilkent University. Benli worked as a financial accountant intern in a public accountant office(october-december 2010) and as marketing ambassador of YKM in Bilkent University (February- June 2009). İpek Beril Benli has been working at TEPAV since March 2012 and continuing her studies on entrepreneurship, global business bridges and development of the private sector. 8

9 Selin Kıral Selin Kıral joined TEPAV in August 2012 and assisted various projects, in particular the ones about entrepreneurship. She is experienced in the coordination and organization of events such as GEP - Entrepreneurship Delegation and TEPAV Constitution Platform. In addition Selin assists PR activities as well as data collection and analysis of the projects implemented in TEPAV. Selin Kıral holds a B.S. degree in Political Science and Public Administration from Middle East Technical University (METU). In METU she was a member of Entrepreneurship Club. Selin worked as an intern in the foreign trade department of Petkim Petro-chemistry Holding Inc. and in the Research Department of TODAIE. Emir Anıl Özen Emir Anıl Özen joined TEPAV in December 2010 and worked for various projects, especially about entrepreneurship and innovation. He is experienced in coordination and organization of the events such as 2nd Global Presidential Summit. Also, Özen assisted PR activities, data collection and analysis of TEPAV. Emir Anıl Özen holds a B.S. degree in Economics from Middle East Technical University. During his undergraduate years, Özen worked at European Cyclists Federation and Eczacıbaşı-Baxter. Damla Özdemir Damla Özdemir got her undergraduate degree in Economics from the Middle East Technical University in Doing an internship at the UNDP in summer 2009, she completed her studies in the "Political Economy of Late Development" MSc program in London School of Economics. Her dissertation on the rise of the SME's and a new middle class in Turkey, received High Merit. Özdemir joined TEPAV in October 2010, and continues her studies on entrepreneurship, innovation, the development of the private sector, private equity funds and political economy. 9

10 Nihan Sırıklıoğlu Nihan has been working at TEPAV since 2009 and is responsible for business development activities, in addition to assisting research and implementation projects. She also has her own entrepreneurship initiatives and writes columns in TR de Marka Magazine. In 2007 Nihan graduated from Hacettepe University Wood Processing Industrial Engineering department. Between 2007 and 2009 she worked in private company active in foreign trade. Nihan obtained her MBA degree from TOBB University of Economics and Technology in ÜMİT ÖZLALE / Academic Advisor After receiving his B.A. in economics from Middle East Technical University in1995, Ümit Özlale finished his Ph.D. in Boston College in 2001 and joined Bilkent University, Department of Economics. He received his associate professor degree from The Council of Higher Education in In addition to his academic studies, he worked as a consultant in Turkey s Central Bank, Economic Research and Monetary Policy Department and undertook several projects with Ministry of Finance as well as the World Bank. Since 2010, he has been working at the Training and Research Institute of Public Policy (TRIPP) in TEPAV and the founding chair of the Department of International Business in TOBB University of Economics and Technology. 10

11 ACTIVITIES Memorandum of Understanding Signature Ceremony, June 22 nd, 2011 Above: Fancois Ricciardone, US Ambassador to Ankara and M. Rifat Hisarcıklıoğlu, TOBB President signed the memorandum of the program. The memorandum of understanding for cooperation between the U.S. Embassy Ankara, TOBB and TEPAV on the Global Entrepreneurship Program was signed on Wednesday, June 22, 2011 by M. Rifat Hisarcıklıoğlu, TOBB President and Head of the TEPAV Board of Trustees; and H. E. Francis Ricciardone, US Ambassador to Ankara. In the conference M. Rifat Hisarcıklıoğlu, TOBB President gave information about the events to be carried out in the context of the one-year pogram such as; events tailored for universities, entrepreneurship curriculum development in pilot universities in cooperation with prominent American universities and study technology transfer system and technoparks. 11

12 Entrepreneurship Breakfast with Assistant Secretary Jose Fernandez, October 4 th, 2011 Above: Rifat Hisarcıklıoğlu is speaking in the Entrepreneurship Breakfast with Secretary Fernandez. The working breakfast with the participation of U.S. Assistant Secretary Jose Fernandez aimed an exchange of views on the development of entrepreneurship in Turkey, and the main focus areas of the GEP-Turkey program. Representatives from TEPAV, GEP, U.S. Government, U.S. Embassy, TOBB, Intel, Youth for Habitat, Inventram, Endeavor, TTGV, MIT Enterprise Forum, Sabancı University, Bilkent Cyberpark, NOVUSENSE, Bilkent University, METU, TOBB ETU, TÜBİTAK and entrepreneurs participated the working breakfast. The need for smart money, a safe investment climate, angel investors, mentorship and the organization of actors in this area were emphasized. Issues such as the development of entrepreneurship education opportunities via internet, focus on technology transfer offices and incubator models, and the completion of legislation needed in the area of venture capital were discussed. The Breakfast Meeting provided a roadmap of the upcoming GEP Turkey activities. 12

13 World Bank Turkey Innovation Report Launch, October 18 th, 2011 Above: The panel session of the event was held in TEPAV. World Bank Turkey s report Igniting Innovation: Rethinking the Role of Government in Emerging Asia and Central Asia were disseminated by GEP Turkey. The launch event was attended by wide range of audience from governmental bodies, private sector, NGOs, universities as well as potential entrepreneurs and others. As a part of the event, a panel regarding the conditions of and developments in the innovation process in the region was organized. Keynote speeches were given by TEPAV Managing Director Güven Sak and World Bank Turkey Director Ulrich Zachau. Panel speakers included TEPAV analyst, Esen Çağlar;; World Bank Europe and Central Asia Private Sector Development Director, Gerardo Corrochano and World Bank economist at the Europe and Central Asia Financial and Private Sector Development Department, John Gabriel Goddard. At the dissemination meeting of the report, the importance of the level and efficient use of R&D expenditures was stressed and recommendations for the report were reviewed. Attracting foreign R&D investment, restructuring research and development institutes, rethinking financial support instruments, and facilitating trade, FDI and entrepreneurial startups and spinoffs stood out as the main recommendations of the report. The participants also exchanged views on the Turkish R&D system, pointing out areas of innovation that need to be addressed by policymakers. 13

14 Istanbul Forum on Woman Entrepreneurship, November 1-2, 2011 Above: The roundtable meeting about women entrepreneurs. Participants: Ahmet Davutoglu, Foreign Minister of Turkey; Hina Rabbani Khan, Foreign Minister of Pakistan David Burns, Deputy Secretary of State, Ambassador Beth Jones and Mrs Marie Riccardione Vice President of TOBB, Faik Yavuz; Minister of Mining of Afghanistan, Vahedullah Shahrani; Minister of State on Investment of Pakistan, Saleem Mandviwalla, and Vice President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Mohammad Akbar Khan. Fatemah Akbari, Shahla Akbari, Malalai Mir Abotorah, Andeisha Farid Mohammed Akram from Afghanistan; Shah Rukh, Shagufta Parveen, Sadaffe Abid from Pakistan and Aynur Bektaş, Şafak Çivici, Gamze Kiracı, Nazlı Ceylan Balduk Kurtul from Turkey. The meeting aimed to foster the activities of women entrepreneurs in the entrepreneurship ecosystem of the region by building a network of women entrepreneurs between Afghanistan, Pakistan and Turkey, as well as identifying the greatest obstacles and bottlenecks in women entrepreneurship, and producing projects of women entrepreneurs in these countries for the future. An exchange of experiences of women entrepreneurs took place during the event, and all participants agreed on creating new forms of cooperation in order to make a more systematic effort to develop women entrepreneurship in these countries. 14

15 Prime Minister s Global Summit on Entrepreneurship (2nd Global Entrepreneurship Summit), December 3-6, 2011 Above: The winners of Turkey Fast Growing 25 Program were awarded by Parliamentary Speaker Cemil Çiçek, Economy Minister Zafer Çağlayan, Development Minister Cevdet Yılmaz and TOBB President M. Rifat Hisarcıklıoğlu. Keynote Speakers: Vice President of U.S.A, Joe Biden; Speaker of the Turkish Grand National Assembly, Cemil Çiçek;; Deputy Prime Minister of Turkey, Ali Babacan Participants: Over 500 entrepreneurs, investors, venture capitalists, incubator managers, academics and government officials from around the world Second Global Entrepreneurship Summit under the theme of Entrepreneurship, Values and Development: A Global Agenda held on December 2011 at Istanbul Harbiye Convention Center under the auspices of Turkey. The Summit, hosted by Turkish Prime Minister Recep Tayyip Erdogan, was a follow up on the Presidential Summit on Entrepreneurship called by President Barack Obama in Washington, DC, last year to explore the role new and young firms play in unleashing innovation, creating jobs and driving economic growth. The Summit received great attention by entrepreneurs, entrepreneur candidates and investors. The sessions and events held as a part of the summit included the award ceremony for Turkey s fastest growing 25 firms, meeting of GEP and PNB partners, Turkey 15

16 Pakistan entrepreneurs forum, the report launch for GEM Turkey, an insiders roundtable on Turkish entrepreneurial ecosystem, a speed networking session, a workshop on mentorship and TOBB sessions on several topics. GEP & PNB Partners Meeting with Vice President Joe Biden Above: After the meeting of GEP and PNB Partners with Joe Biden. This small meeting that took place right after the opening speeches has provided an opportunity for select Turkish business leaders and key GEP partners to exchange ideas with Vice-President Biden. During the meeting, the Turkey branch activities of PNB program were discussed, and the progress of this partnership s continuing projects were also assessed. 16

17 Plenary Sessions Above: Linda Rottenberg CEO of Endeavor is making keynote speech. Opening Remarks: M. Rifat Hisarcıklıoğlu, President of TOBB and Lorraine Hariton, Special Representative for Commercial and Business Affairs, U.S. Department of State Keynote Speech: Linda Rottenberg, CEO, Endeavor Closing Speeches: Shelly Porges, Senior Adviser on Entrepreneurship, U.S. Department of State and Jonathan Ortmans, Chairman of Global Entrepreneurship Week at Kauffman Foundation Panel 1: Global Entrepreneurship Revolution Moderator: Usama FAYYAD, Founder and CEO, Oasis 500 Speakers: Dilawar Syed, President & CEO, Yonja Media Group, Haytham El-Fadeel, CEO, Kngine.com, Ali Sabanci, Chairman, Pegasus Airlines, TOBB Young Entrepreneurs Board, Ayo Megbope, CEO, No LeftOver Panel 2: From Silicon Valley to Istanbul: A New Hub for Venture Capital Moderator: Christopher M. Schroeder, CEO, Health Central; Co-founder, Online Publishers Association, Elizabeth Clarkson, Director of Global Network, Faysal Sohail, Managing Director, CMEA Capital, Ahmed El Alfi, Founder & chairman, Sawari Ventures, Goktekin Dincerler, Chairman TOBB Venture Capital Industry Council, Mustafa Abdel-Wadood, CEO, Abraaj Capital 17

18 Panel 3. Global Era in Entrepreneurship: Transformation of Entrepreneurship, its Contribution to Development and the Effects of Global Cooperation on Cross-Cultural Approximation This panel was opened with the remarks of the Minister for Development of Turkey, Dr. Cevdet YILMAZ. The opening speech was followed by a panel discussion, moderated by the Managing Director of TEPAV, Mr. Güven SAK. At the panel that involved heated discussions on entrepreneurship trends, panelists from various sectors contributed to the discussion, sharing their experiences in the global entrepreneurial ecosystem. These panelists included Arif NAQVI, Founder and CEO of Abraaj Capital, Leonard A. SCHLESINGER, President of Babson College and Ferit F. ŞAHENK, Chairman of Doğuş Group. Turkey Pakistan Entrepreneurs Forum Above: From left to right: Ahmet Kayhan, Founder and CEO REIDIN, Zafar Khan, Founder and CEO Sofizar, Prof. Erhan Erkut, President of Ozyegin University, Faisal Farid, Founder & CEO Maxim International, Cem Sertoglu, Founder Young Turk Ventures, Board Member and Dilawar Syed, Yonja Media Group President and CEO. Forum included an opening speech by Dilawar Syed, Yonja Media Group President and CEO and discussion by several participants to the panel. After the opening speech, during the welcoming remarks Allworld Network Pakistan Director Ahmad Jalal and Turkey Director Ozan Acar evaluated the situation of the entrepreneurs and fast growing companies in Pakistan and Turkey. Within this framework, the opportunities of possible partnerships among the fast growing companies of both countries were emphasized. 18

19 Insiders Roundtable on Turkish Entrepreneurship Ecosystem A roundtable event was held with the participation of Turkish entrepreneurs, venture capitalists and the panelists of the TOBB sessions in the Summit. The insider s roundtable event brought together managers Above: Insiders Roundtable was organized at at the Istanbul of institutions and funds that Congress Center. give support to entrepreneurs in Turkey and the world, discussing the shortcomings of the entrepreneurship culture, primary obstacles entrepreneurs face, the possible entrepreneurship development models for Turkey and the situation of incubators in Turkey. Two more roundtables were organized with special themes: (1) Global Entrepreneurship Week Stakeholders in Turkey with Jonathan Ortmans, head of Global Entrepreneurship Week at Kauffman Foundation. (2) Managers of main incubators with David Monkman, head of National Business incubation Association. Global Entrepreneurship Monitor Turkey Report Launch This session launched of the Global Entrepreneurship Monitor (GEM) 2010 report, and presented the findings of GEM for Turkey, announcing Turkey s bottlenecks in entrepreneurship and its relative position in the world. GEM is a global leading publication aiming to provide data that would enable researchers and policymakers to compare entrepreneurship environments in different countries. The event was attended by Len Schlesinger, president of Babson College. Mowgli Mentorship Workshop The Mowgli Foundation, an active organization in the UK and in MENA region provides mentors who inspire, support and empower entrepreneurs in achieving their business and personal potential, encouraging sustainable job creation and social and economic development. This two-hour workshop introduced the participants to key aspects of 19

20 mentoring to entrepreneurs. The importance of mentorship in sustainability of enterprises was stressed during the workshop. Endeavor Speed Networking Session Over 120 Endeavor network members gathered in Istanbul to participate in the 2nd Global Entrepreneurship Summit. This event provided a networking opportunity with them, involving different environments and topics to interact. Exchange Room and Booths 2nd Global Entrepreneurship Summit presented a great environment for entrepreneurs to exchange their business ideas in the Exchange Room. Many institutions, actively participating in the development of entrepreneurship in Turkey promoted their activities via booths at the halls of the Convention Center. Allworld Arabia 500 Above: After the award ceremony of AllWorld Arabia Fast Growing 500 AllWorld Network presents the largest collaboration of growth entrepreneurs from emerging countries in the Middle East, North Africa, Turkey and Pakistan. In this session, the result of Arabia 500+Turkey was announced and the entrepreneurs were awarded. 20

21 CRDF GIST Competition Above: After the award ceremony of AllWorld Arabia Fast Growing 500 This activity was hosted by TEPAV, CRDF moved to the final round of GIST Tech-I (GIST Technologic Idea Competition) from Jordan to Istanbul and announced the finalist during the Presidential Summit. 25 semi-finalists were trained on Business Models, Nuts and Bolts of the Executive Summary and the Pitch, Raising Funds for Your Ideas and Ventures. After presenting business ideas in front of a panel of international judges, the 11 most successful entrepreneurs received their prizes. 21

22 Bi-national Industrial Research and Development (BIRD) Foundation Workshop, December 20, 2011 Keynote Speakers: Limor Nakar Vincent (BIRD Foundation) Participants: Representatives from public and private sector institutions and NGOs that actively participate in Research and Development in Turkey; such as the Ministry of Science, Industry and Technology, Ministry of Development, TÜBİTAK, TTGV, Bilkent Cyberpark, METU Technopark and the U.S. Embassy. Above: Bi-national Industrial Research and Development (BIRD) Foundation Workshop in TEPAV. This event was not indicated in the initial budget of GEP-Turkey Project. The meeting aimed to have a better understanding of the matchmaking mechanisms between the U.S. and Israel that allowed the development and sale of numerous innovative products in the U.S. market. Hence, the possibility of a Turkish BIRD institution was discussed. The meeting hosted the director of the U.S. Business Development and BIRD Energy department of BIRD foundation, Limor Nakar Vincent, who made a presentation about the mechanisms, structure and investments of the BIRD model. 22

23 Entrepreneurship Journalism, Media Workshop with Scott Kirsner March 27th, 2012 Location: TOBB Facilities, Ozyegin University, Istanbul Participants: Senior and Junior Journalists from Bugün Daily Newspaper, Radikal Daily, Vatan Daily, Hurriyet Daily, Ekonomist Daily, Dünya Daily, Habertürk Daily, Anadolu Ajansı, Infomag, Bloomberg Business week Turkey, Endeavor Above:Scott Kisner and the participants in Media Workshop. Representatives and Entrepreneurs representing Digitouch Media Group and Webrazzi. The media workshop targeted 20 participants and aimed to increase the amount of entrepreneurship news and improve the content of them. The half-day workshop started with the comparative evaluation of entrepreneurship news in Turkey and USA by Scott Kirsner followed by comments from two leading journalists of the Turkish Media. Going through the examples of the entrepreneurship news in the States, stories of Turkish entrepreneurs were discussed. 3 entrepreneurs also participated in the workshop and answered journalists questions. Scott Kirsner is the chief technology columnist for Boston Globe. 23

24 Entrepreneurship Journalism, Media Workshop (Development of Entrepreneurship News) with Donna Fenn, May 28th, 2012 Participants: Senior and Junior Journalists from Bugün Gazetesi, Dünya, Bloomberg Businessweek Turkey, Radikal, Anadolu Ajansı, Businessweek Turkey, Vatan, Emlak Kulisi, Infomag, Posta and Entrepreneurs representing HemenKiralik, Balerin as well as an investor from 212 Ltd. The media workshop concentrated on increasing the amount of entrepreneurship news and improving the content of them. The half-day workshop started with the comparative evaluation of entrepreneurship news in Turkey and in USA by Donna Fenn, followed by comments from leading journalists of the Turkish Media. Above: Donna Fenn. Going through the examples of the entrepreneurship news in the States, stories of Turkish entrepreneurs were discussed. In order to increase the awareness of entrepreneurship it was also emphasized to increase news about investors. Two entrepreneurs and an investor also participated to the workshop and answered journalists questions. 24

25 Entrepreneurship Delegation to Turkey May 28th June 1st, 2012 Above: Award Ceremony of Entrepreneurship Delegation. GEP Turkey launched its Entrepreneurship Delegation (EDEL) activities, comprised of 15 leading American entrepreneurs and early-stage investors and 8 Turkish investors. The Turkey EDEL delegates are entrepreneurs and investors at the forefront of their respective industries, including: e-commerce, mobile applications, telecom, information and communications technology, biotech, agribusiness, alternative energy, and pharmaceuticals. Delegates have taught at leading U.S. universities, authored more than a dozen books on business and management, and have a combined $50 billion in venture investments across hundreds of companies. Collectively, the group has been involved in more than two dozen IPOs (see attached list of delegates). As a part of the EDEL activities, American delegates joined with Turkish investors in judging the Showcase of Turkey s Best of the Best Entrepreneurs, a business plan competition featuring 32 of Turkey s most promising entrepreneurs and brightest innovators. The EDEL also spent time mentoring companies whose businesses did not make the final competition through speed mentoring events in both Ankara and Istanbul). Over the course of the four days, the delegates interacted with an estimated 300 Turkish entrepreneurs. EDEL members are already actively pursuing over 30 new investments based directly on this trip. The first investment decision by one of the delegates Bob Stringer to WeDecide, a finalist of the Showcase, has been announced in October

26 Showcase of Turkey s Best of the Best Entrepreneurs (Business Plan Showcase) The centerpiece of the EDEL was the business plan competition, the Showcase of Turkey s Best of the Best Entrepreneurs. The competition s semifinalists were chosen from 153 nominations submitted by more than 30 organizations, including Endeavor, Massachusetts Institute of Technology (MIT) Enterprise Forum, Middle East Technical University, Bilkent University, and Ozyegin University, that sponsored business plan competitions throughout Turkey over the past year. The startups competed along two tracks early-stage and growth-stage, and came from sectors as diverse as mobile applications, green energy, education technologies, gaming hardware and software, e-commerce, agribusiness, fashion, biomedical products, and image processing. On May 30 th, the top three winners of each category were announced at an Awards Ceremony & dinner that was attended by Deputy Prime Minister Ali Babacan along with over 350 guests. The winners received cash awards and were invited to the United States to meet with additional U.S. investors, customers, suppliers and model entrepreneurs from companies such as YouTube, Twitter and Instagram (see list of winners below and full list of finalists attached) to widen their networks. The showcase winners are listed below. Early-stage competition 1 st place: Green Age Tech wastewater treatment technology, Mehmet Enes Kutluca, Istanbul 2 nd place: Antropi Education Tech smart board software company, Abdullah Erdogan, Istanbul 3 rd place: Exa-Tech - optical sensing software for sports performance management, Serdar Alemdar and Emre Ercin, Istanbul Growth-stage competition 1 st place: Hemen Kiralik short-term rental web platform, Rina Onur and Remi Onur, Istanbul 2 nd place: InfoDif image processing system, Kerem Caliskan and Salih Eren Parlakgumus, Ankara 3 rd place: Hediyemo social and mobile gifting and payment platform, Altug Acar and Pinar Kart, Istanbul 26

27 Other EDEL Activities Other EDEL events included a meeting with Turkish President Abdullah Gül, an Angel Investors Networking dinner, the Entrepreneurship Ecosystem Insiders roundtable, and visits to local incubators and universities. Through these events, delegates gained a deeper understanding of Turkey s entrepreneurial and investment climate and added to the dialogue on how to best strengthen Turkey s entrepreneurship ecosystem. Impact of EDEL The EDEL served as a platform to bring together budding entrepreneurs, seasoned Turkish entrepreneurs and investors and American investors. The different players within the ecosystem were not just introduced to one another, but also to other players within their respective fields were involved. Thus, creating such synergies and vital connections would help strengthen and expand the entrepreneurial ecosystem. EDEL served as a mechanism for building relationships between entrepreneurs and investors/mentors, and for building relations amongst entrepreneurs themselves. Entrepreneurs are the key players, around which the entrepreneurial ecosystem is built. Hence strengthening their internal networks one, in which they could find collaborators, potential talent for their own start-ups, and also form a support system for sharing their experiences with success and failure in entrepreneurship is crucial for a thriving ecosystem. Above: Award Ceremony of Entrepreneurship Delegation. 27

28 Building connections between American and Turkish investors was another crucial success of the EDEL. The opportunities to network and assess each others investing styles gave US investors the confidence in investment decisions of Turkish delegates. Thus creating channels for US investors to invest in good deals in Turkey via Turkish investors given their first hand experience of dealing in Turkish markets, and their country-specific knowledge which would increase the likelihood of selecting companies expected to succeed in Turkey. The results of GEP Turkey s business plan competition supported this view: After the competition, EDEL members started to actively pursue over 30 new investments based directly on this trip. Moreover, 44 mentoring relationships formed between U.S. delegates and Turkish entrepreneurs. Round table discussions also brought to the forefront, areas that required policy support: providing entrepreneurs executive thought and capacity, business operation and pitching skills, patent knowledge, organizing angel investors and mentors into a community and encouraging a culture of entrepreneurship and risk taking in Turkey. It has encouraged and made Turkish entrepreneurs and investors aware of a key resource the Turkish diaspora in the US, which could be tapped for mentorship, investments and links to global networks. Moreover, many delegates expressed interest in forging relations with delegates/organizations based in Turkey to improve access to the MENA region. The panel discussions in Ankara, led to healthy talks amongst members of key policy-making institutions like the Treasury, KOSGEB, TUBITAK, TTGV and GEP delegates and other private sector representatives including Intel. Attention was brought to policy design and policy delivery, fostering entrepreneurial Above: Meeting with President Abdullah Gül communities, role of the government in making Turkey the bridge between Middle East and the rest of the world, and inclusive regional growth. EDEL brought the different stakeholders to the table and enabled sharing a common language of entrepreneurship. Meetings with the President H.E. Abdullah Gül and Deputy Prime Minister Ali Babacan underscored the importance entrepreneurship is gaining in Turkey, as an enabler of economic growth and job creation. 28

29 EDEL not only helped bring in investment deals to Turkish start-ups, it also played a key role in Turkey s entrepreneurial ecosystem by bridging information gaps, between investors, entrepreneurs and highlighting avenues for improvements. Entrepreneurship is turning into one of the most important channels for strengthening bilateral ties between the US and Turkey, with GEP playing an active role in promoting entrepreneurship in Turkey. 29

30 List of U.S. Delegates Jim Boettcher Founding Partner of Silicon Valley-based Focus Ventures and Forbes Magazine 2011 ranked #37 of the Top 100 Most Powerful Venture Capitalists Laura Brightsen Former executive at Apax Partners (private equity) and American Securities; currently a Managing Director at Golden Seeds, an Angel Investment Fund focus on women-run companies and featuring primarily women Angel Investors Court Coursey Managing Partner of Tomorrow Ventures, the primary venture investment vehicle of Google Chairman Eric Schmidt Martin Gedalin Founder and Managing Partner of Lumia Capital, a venture capital fund focused on emerging market internet and software companies Seth Goldstein Silicon Valley based serial entrepreneur and investor, currently Chairman of social music service turntable.fm, ranked by Billboard Magazine as top music startup of 2011 Jon Grall An MIT-educated computer scientist, now Silicon Valley-based entrepreneur, who founded (among other companies) SimplyListed, a Y-Combinator backed company Diane Hessan Boston-based President and CEO of Communispace, a leading next-generation market research and social media company, chosen as #3 on Boston s list of Top Women in Tech, author of best seller Customer-Centered Growth, and national finalist in E & Y s Entrepreneur of the Year competition 30

31 Saad Khan Partner at Silicon Valley-based CMEA Capital and noted early stage investor in companies such as Zaarly, Blekko, Luminate, Jobvite and Lending Club. Advisor for Thiel Foundation Fellowships and Stanford s Liberation Technology Program Edward Ned Lamont Founder and Chairman of Lamont Digital Systems, one of largest private telecommunications systems in the US, also ran for Governor of Connecticut and was Democratic Nominee for US Senate from Connecticut Austin Ligon Co-founder and retired CEO of CarMax Inc, the largest retailer of used cars in the US selling nearly 600,000 vehicles in 2011 with revenues of $10 billion Loretta McCarthy Managing Director of Golden Seeds Angel Investors, Loretta was previously Executive Vice President of Oppenheimer Funds as well as a long time executive at American Express Faysal Sohail General Partner at CMEA Ventures as well as member of startup teams of three successful companies in the tech sector: Cadabra Design Automation, Silicon Architects and Actel Corporation Robert Bob Stringer Active Angel Investor in Boston and New York in the food and beverage, pharmaceutical and consumer sectors; professor of entrepreneurship at Harvard Business School and Babson College, co-author or author of four books on management Yanev Suissa Executive at NEA, America s largest Venture Capital Firm with a focus on early-stage investments in enterprise, cloud, digital media and consumer technologies. Previously, Senior Investment Advisor at Department of Energy s Loan Guarantee Program. Recipient of Kauffman Fellowship, Presidential Management Fellowship. MBA from Oxford Said School of Business, JD from Harvard Law School, BA Phi Beta Kappa from Yale 31

32 Nandini Tandon PhD Veteran Silicon Valley Venture Capital investor in the pharmaceutical and bio-tech industries, was previously Managing Director with Lumira Capital and Partner at RBC Capital Partners launching their life sciences practice List of Turkish Delegates Sina Afra Co-Founder and CEO of Markafoni, Turkey's largest shopping website. Angel investor focused particularly on e-commerce. Founding member of Galata Business Angels Network, and "Web Entrepreneur of the Year" in 2011 Emre Berkin Angel Investor, owner of an independent consultancy firm specialized in international business development, investment and funding. Former General Manager of Microsoft Turkey Ali Karabey Managing Director and founding member of 212 Ventures. Investor of successful e-commerce firms such as Butigo.com, Balerin.com and HemenKiralık.com Emre Kurttepeli Chairman of Turkey's leading web portal with 38 million visitors per month, providing 48 different products and services, Mynet Group. Chairman of Galata Business Angels Network Cem Sertoğlu Founding partner and manager of Young Turk Ventures. Investor and board member of Grupanya, a prominent discount shopping website. Angel investor, funding CivicSolar and Wikimart.ru 32

33 Dilawar Syed President & CEO, Yonja Media Group, an emerging markets internet media company. President of Org. of Pakistani Entrepreneurs (OPEN) in Silicon Valley, and former head of Yahoo! s Platform Business Group Nuray George Ugras General Partner at Adams Capital Management, a national venture capital firm specializing in early-stage applied technology investments. Director of several private companies including Rafter, Luminescent, TwelvefoldMedia and NextIO. He is on the visiting committee at CalTech/JPL. & Com Haluk Zontul CEO of Teknoloji Yatırım A.Ş, board member of UCA Medical, Infotech, Asset, Logo BI, MikroSens and Arı Teknokent A.Ş. A former project manager and key expert of TUBITAK, specialized on the commercialization process of R&D projects. 33

34 List of Finalists Early-stage Imona Technologies: Founded by Bahadır Ödevci;; Software development Hipmoni: Founded by Mert Giray, İlhan Ergin Eroğlu, Melike imsek;; e- commerce/fashion Atiken: founded by Emre Ergun Burak Çağatay;; Green energy and environmental technologies Green Age Tech: Founded by Mehmet Enes Kutluca; Green energy and environmental technologies Energized: Founded by Serol Türkyılmaz, Levent Beker;; Green energy and environmental technologies Exa-Tech: Founded by Serdar Alemdar, Emre Erçin;; Sports information technology Otelist.me: Founded by evki Demir, Ali Aksakarya, Pars Kunt, Kaan Özdökmeci;; Mobile travel booking E-teşhis: Founded by Güner Aktürk, Betül Gemalmaz;; B2C healthcare web platform Innovation Agriculture: Founded by İbrahim Tekseven, Hüseyin Yıldız;; Agribusiness HelthOR.CoM: Founded by Ahmet Erol Fazlıoğlu, Fatih Karaaslan, Albert Güveniş;; Biomedical technology MyMija: Founded by Dinemis Sabancıoğlu, Çiçek Çizmeci;; e-commerce/fashion Antropi Education Tech: Founded by Abdullah Erdoğan;; Education technologies Alictus: Founded by Arif Emre Taş, Ecem Baran, Onur Dilek; Game hardware TK3-Teknik Ltd.: Founded by Ünver Kaynak, Memduh Türkoğlu;; Green transportation Inturlam Ltd.: Founded by Umut Gültepe, Burak Mert, Umut Aradağ;; B2C retail technology E Brand Value: Founded by M. Tolga Akçura, Murat Lostar;; SaaS retail Growth-stage Lamagama Entertainment: Founded by Nilay Yüce, Gökhan Ertem;; Gaming Unnado.com: Founded by Göktuğ Okan, Oğuz Haldun, Uraz Boralılar;; e-commerce HemenKiralik.com: Founded by Remi Onur, Rina Onur, Mehmet Ülkü, Alper Kaya;; B2C travel Balerin.com: Founded by Lütfi Gündüz;; e-commerce 34

35 ISSD Integrated Systems & Systems Design: Founded by Çağrı Yüzbaşıoğlu, Serdar Onart; B2B image processing InfoDif Ltd.: Founded by Kerem Çalışkan, Salih Eren Parlakgümüş;; Image processing PembePanjur.com: Founded by Haluk Akın, Seda Berber;; Internet Arcade Monk: Founded by Ömer Bilge Ersoy, Alemşah Öztürk;; Gaming Solvoyo: Founded by Koray Doğan;; Enterprise software Userspots: Founded by Mustafa Dalcı;; B2B user interface measurement Hediyemo: Founded by Altuğ Acar, Pınar Kart;; e-commerce BMT Calsis: Founded by Mahmut Özgürbüz, Levent Mete Özgürbüz, Yavuz Eren;; Biomedical KADE: Founded by Kaan Kayabalı;; Image processing Butigo: Founded by Gizem Yasa, Berk Alevi, Harun Güner;; e-commerce/fashion We Decide: Founded by Kutlu Kazanci, Erdem Ovacik, Ali Erhat Nalbant, Cengiz Bayram; Software development ATARD A.S.: Founded by Burak Yakupoglu, Timucin Tecmen, Ahmet Cengiz Tecmen, Ayse Yakupoglu, Cem 35

36 Startup Weekend Ankara Above: In the closing ceremony of Startup Weekend Ankara, jury, organization team and entepreneurs. Location: GARAJ TEPAV Date: 5 7 October 2012 Participants: University students coming from throughout Turkey, investors, some people from private sector and academicians Startup Weekend Ankara which brought the mobile developers interested in startups together will be organized with the cooperation of Global Entrepreneurship Program and Viveka Incubation Center. Startup Weekend is a global network of passionate leaders and entrepreneurs on a mission to inspire, educate, and empower individuals, teams and communities. Startup Weekend events are 54-hour events where developers, designers, marketers, product managers and startup enthusiasts come together to share ideas, form teams, build products, and lunch startups. The events have been organized in more than 70 countries in worldwide including Mongolia, South Africa, England, Brazil etc. and have reached more than entrepreneurs up to now. Startup Weekend Ankara had the importance of being first in the city and second in Turkey, after Istanbul. Beginning with open-mic pitches on Friday; young entrepreneurs brought their 36

37 best ideas and inspired others to join their team. From among the 29 presented business ideas, 14 ideas were chosen by vote and teams were formed. Over Saturday and Sunday teams focused on customer development, validating their ideas and building a minimal viable product. On Sunday evening teams prepared demo and received valuable feedback the jury including major angel investors from Turkey. Winners of Startup Weekend Ankara: KEYF-I SEYYAH Are you going on a roadtrip? Pick your starting point and ending point and Keyf-i Sayyah will point the landmarks along your road, places to eat and camp and many more. Emine Çimen Sevilay Yıkılmaz Emel Bağdatlıoğlu Ziya Altınok Zeydin Bozkurt Alper Yasemin GALAVALOMKA It is a mobile bookstore. Parents can purchase and buy interactive animated books for their children. Ezgi Çetin Gizem Kılıç Edebali Şener Sercan Uysal OLASILIKSIZ Maybe you are not Harvey Dent but sometimes you would like some other force of luck to make a decision for you. Olasılıksız is a mobile app that makes random decision for you. Gökçe Türkmen Mahmut Coşkun Mustafa Uçmaz Berat Oğuz Burak Aydın TOUNAT Tounat helps tourists and visitors find local voluntary guides in their location by using their mobile phone. Onur Burç Alpe Ekmekçi Mehmet Ali Akyol İsmail Sefa Nazlım 37

38 Evaluation of Entrepreneurship Ecosystem in Izmir with Izmir Development Agency (IZKA), June October 2012 After the buzz created by the State Department Entrepreneurship Delegation to Turkey in late-may 2012 that visited Istanbul and Ankara, other Turkish cities became interested in turbo-charging their entrepreneurial eco-systems. The first step came from the Izmir Development Agency, which recently teamed up with GEP Turkey to help promote the Above: Ussal Şahbaz is speaking about analysis. entrepreneurship ecosystem of Izmir. GEP Turkey's novel approach to ecosystem analysis looks beyond the Silicon Valley: It uses best-processes in "secondary" U.S. cities such as Seattle, Philadelphia and Houston to suggest policy recommendations for similar cities in Turkey. Ultimately, the ecosystem analysis report will provide a new vision for local Turkish policymakers. Using the GEP framework in analyzing the entrepreneurship ecosystem of a selected region, GEP Turkey team designed a framework for Izmir Development Agency, with the aim of analyzing the current conditions of Izmir local entrepreneurship ecosystem, identifying bottlenecks and proposing a roadmap, in the form of a strategy document for the development of the ecosystem. The document also provides a critical input for the Izmir Regional Development Plan In order to provide an accurate and detailed picture of local current conditions, GEP Turkey team interviewed several ecosystem actors, organized two different workshops with participants from corporations, incubators, local media, NGOs, universities, the government s related local institutions and entrepreneurs themselves. Moreover, the team conducted separate interviews with entrepreneurs, investors and policy-makers in Izmir, Ankara and Istanbul. The strategy document was launched in Endeavor Turkey s Iyi Girişim summit in Izmir, on October 11, This event, supported by the Izmir Development Agency, brought together 38

39 the leaders of Izmir s nascent entrepreneurship eco-system, and has been a first step towards many events as envisaged in the strategy document. GEP Turkey Entrepreneur-in-Residence Ussal Sahbaz presented the Izmir study and GEP s Beyond Silicon Valley approach for regional entrepreneurship eco-system building in a summit by European Association of Regional Development Agencies (EURADA) in Samsun on October 18 th, Above: Endeavor s İyi Girişim Summit. 39

40 Candida Brush - Entrepreneurship Workshop: Women Entrepreneurship: Myths and Realities, October 22 nd, 2012 Above: Fatma Şahin, Minister of Family and Social Policies, is speaking about women entrepreneurship. Opening Speakers: Nilgün Arısan Eralp, Francois Ricciardone, Fatma Şahin Keynote Speaker: Candida Brush. Participants: Representatives from public and private sector institutions and NGOs that actively participate in Research and Development in Turkey. Above: Fatma Şahin, Minister of Family and Social Policies, is speaking about women entrepreneurship. The event aimed to stress the women entrepreneurship, to present the facts on this issue and to find solutions to increase the number of women entrepreneurs. The event started with the opening remarks of Francois Ricciardone, US Ambassador to Ankara, and Fatma Şahin, Minister of Family and Social Policies. At the beginning of the speeches the obstacles women face in the labor market was stressed. Nilgün Arısan Eralp, TEPAV director to EU Institute presented the research findings and some statistical data on women entrepreneurship in Turkey and comparisons with EU. In the event, minister Sahin put in the picture of women entrepreneurship and the actions the government is conducting and planning to conduct to support the women entrepreneurship. In the keynote speech of the event Candida Brush remarked the facts on women entrepreneurship throughout the world and presented different perspectives for development of entrepreneurship. At the end of the event, Candida Brush presented an American perspective approach to the issue of women entrepreneurship in Turkey. 40

41 A Conference on Entrepreneurship Policies in Turkey, November 13 th, 2012 Above: US. Ambassador Francois Ricciardone and TOBB Presidient M Rifat Hisarcıkıoğlu with VIP guests of the conference TEPAV carried out an Entrepreneurship Policy Conference on Tuesday, 13 November 2012, with the participation of representatives from private and public sectors as well as the academia and civil society. The conference organized in the context of the Global Entrepreneurship Week was inaugurated by TOBB President M. Rifat Hisarcıklıoğlu and US Ambassador to Ankara, Francis J. Ricciardone. Hisarcıklıoğlu stressed that Turkey s platforms for economic cooperation with the US has been growing rapidly and that the majority of the ongoing work was based on enhancing entrepreneurship in Turkey and its region. Noting that 22 out of 48 poorest countries in the world were Muslim, he stated that it wasn't oil and natural gas resources but entrepreneurship that brought prosperity. On the other hand, referring to the need to support woman entrepreneurship, Ambassador Ricciardone stressed that highlighting and raising public awareness of successful entrepreneurs would encourage girls and thus foster entrepreneurship. He added that entrepreneurship was an important part in advancing Turkish-American friendship. 41

42 The opening session was followed by three panel sessions with the titles Do We Have an Entrepreneurship Policy in Turkey Fostering Entrepreneurship as a Tool for Development and Competitiveness and Government: Supporting or Hindering Entrepreneurs and a keynote speech titled Social Entrepreneurship: Ventures to Address Global Challenges. The panel session titled Do We Have an Entrepreneurship Policy in Turkey? moderated by TEPAV Managing Director Güven Sak hosted a discussion on the state and the drawbacks of the entrepreneurship ecosystem in Turkey. Speaking at the panel, METU Rector Ahmet Acar stated that although Turkish people had the entrepreneurial spirit, Turkey lacked policies that will unravel this spirit and foster the entrepreneurship ecosystem. Emphasizing the need for cooperation between universities, private sector and public sector, Acar accentuated the key importance of an education system that will encourage individuals for free thinking, starting in the family life. Ali Arslan, General Director of Financial Sector Relations and Exchange, Republic of Turkey Prime Ministry Undersecretariat of Treasury, said that the impact of the existing entrepreneurship policies was not assessed effectively. Nahit Bingöl, General Director of Regional Development and Structural Adjustment at Republic of Turkey Ministry of Development, underlining that entrepreneurship policies should be diversified on the basis of the regional texture of the entrepreneurship ecosystem, pointed at the key role regional development agencies should play in designing entrepreneurship policies. Numan Numan, Managing Partner of Turkey s successful investor 212 Ventures, raised as a critical problem the absence of any legal infrastructure for venture capital funds in Turkey. Numan said, Turkey doesn t have the infrastructure for founding VC companies. We are forced to found VC funds abroad. Moreover, he argued that public sector could contribute to the entrepreneurship ecosystem more by providing mentoring services rather than funds and that policy makers should consult to entrepreneurs and investments when designing policies. John D. Danner, Senior Fellow at the Haas School of Business, University of California Berkeley, renowned for his pioneering studies on social entrepreneurship, stressed that entrepreneurship had entered a new phase, with a diversity of new types of entrepreneurship. Expressing that entrepreneurial activities devoted to solve global problems had been spreading, he said that social entrepreneurship had more than one pillars enabling a structure under which the state- NGOs and international organizations and companies could concord. 42

43 The panel session titled Fostering Entrepreneurship as a Tool for Development and Competitiveness moderated by TEPAV Global Entrepreneurship Program Coordinator Ussal Şahbaz received great attention. The session hosted a comprehensive debate on entrepreneurship policies with panelists representing various organizations. Although panelists put forth different perspectives on the problems of the entrepreneurship ecosystem in Turkey, they were unanimous that direct public support was an impediment to the flourishing of entrepreneurship ecosystem in Turkey. Aslı Kurul, Endeavor Search and Services Director stressed that public supports blunted entrepreneurs in Turkey. She said, Supports discourage entrepreneurial activity. An entrepreneur receiving public support does not even leave his office or meet his costumer. She stated that some entrepreneurs relying solely on state support lost their innovative qualifications. Above: The 2 nd panel of the conference: Fostering Entrepreneurship as a Tool for Development and Competitiveness. Delivering a speech during the panel, İhsan Elgin, Director of the Center for Entrepreneurship of Özyeğin University, emphasized that technoparks in Turkey were used out of their purpose. He said Due to tax advantages, technoparks in Turkey are occupied by large companies. There is no room left for entrepreneurs. He accentuated that in Turkey an academic who makes an invention was not authorized to found a company, which hindered the advancement of entrepreneurial ecosystem. Calling policy-makers for action in this regard, Elgin added that mentoring-based enterprises were more successful in general. Sibel Ersin, Head of Planning Unit at Izmir Development Agency, stated that entrepreneurship policies shall be shaped according to the regional texture and that this required the involvement of regional development agencies in the process. Ersin said that Izmir Local Entrepreneurship Ecosystem Strategy Paper prepared jointly with was a TEPAV was a pioneering work in the field and stressed that entrepreneurship was now seen as a deep-rooted tool for competitiveness. She added that innovation, marketing and entrepreneurship strategies facilitated one another. 43

44 Murat Gürsoy, UNDP Program Specialist and Coordinator, stressed that not all regions of Turkey can be as conducive as Izmir to fostering entrepreneurship and warned that regional development agencies should first analyze this factor before developing entrepreneurship policies for their regions. As other panelists, he stated that public support had to be targeted at the entrepreneurship ecosystem rather than entrepreneurs per se. Above: TOBB Presinden M. Rifat Hisarcıklıoğlu is making his opening speech. Teyfik Demir, entrepreneur and professor at TOBB University of Economics and Technology (TOBB ETÜ), stated that all students at TOBB ETÜ were taught entrepreneurship classes and heralded that the technopark and the incubation center GARAJ would become operable soon. Emphasizing the key role of public support in technology development, he said that he believed Scientific and Technological Research Council s Technology Transfer Office Support Program (Numbered 1513) would prove successful. Demir also pointed at the role of universities in the activism of entrepreneurship ecosystem and said that successful entrepreneurs should engage in both invention and business. The last panel session titled Government: Supporting or Hindering Entrepreneurs? moderated by Mete Çakmakçı, Chairman of TOBB Venture Capital Sector Assembly, hosted public sector representatives as well as successful entrepreneurs. Cenk Emre, Director of the Monitor Group, analyzed the current situation in Turkey in the light of a public poll carried out by the Monitor Group and the Kauffman Foundation. Touching upon the strengths and weaknesses of Turkey, Emre stated: Results reveal that Turkey is among the top three of the world concerning the size of investment incentives. Also, the awareness of the society about entrepreneurship is improving. But skilled workforce is missing and entrepreneurs complain about heavy tax liabilities. Yavuz Eroğlu, General Director of SEM Plastic, argued that the state was yet to take radical steps to foster entrepreneurship ecosystem in Turkey, entrepreneurship was not addressed in the constitution, and individualism and individual gain were not awarded. He raised corruption, bribery and weak access to finance as critical impediments to entrepreneurship in Turkey which should be addressed as policy priorities. 44

45 Ekim Nazım Kaya, successful entrepreneur and the founder of Botego, maintained that although there were a number of projects for state support in Turkey, the R&D threshold of these were low. Yet, he admitted that such supports had an undeniable effect in fostering entrepreneurship ecosystem in Turkey so far. Hayrettin Demircan, Deputy General Director for Financial Sector Relations and Exchange at the Republic of Turkey Prime Ministry Undersecretariat of Treasury, emphasized that public sector should cooperate with the private sector when devising policies and that the Entrepreneurship Council established recently served as a platform to this end. He added that entrepreneurs should not be expecting constant public action. Stressing that the incentive system in effect went long way back, he maintained that the system could not be changed overnight but could be transformed gradually. Panel 1. Do We Have an Entrepreneurship Policy in Turkey? Moderator: Güven SAK, TEPAV, Executive Director Speakers: Ahmet Acar, Middle East Technical University, Rector; Ali Arslan, Republic of Turkey Prime Ministry Undersecretariat of Treasury, Financial Sector Relations and Exchange, General Director; Nahit Bingöl, Republic of Turkey Ministy of Development, Regional Development and Structural Adjustment, Geneal Director; Numan Numan, 212 Venture, Managing Partner; Tarık Sönmez, Republic of Turkey Ministry of Economy Exports,General Director Keynote Speech: Social Entrepreneurship: Ventures to Address Global Challenges Speaker: John D. Danner, Haas School of Business, University of California Berkeley, Senior Fellow Panel 2. Fostering Entrepreneurship as a Tool for Development and Competitiveness Moderator: Ussal Şahbaz, TEPAV Global Entrepreneurship Program Coordinator Speakers: Teyfik Demir, TOBB Economy and Technology University, Professor; İhsan Elgin, Özyeğin University, Director of the Center for Entrepreneurship; Sibel Ersin, İzmir Development Agency, The Head of Planning Unit; Murat Gürsoy, UNDP Program Specialist and Coordinator; Aslı Kurul, Endeavor, Search and Services Director Panel 3. Government: Supporting or Hindering Entrepreneurs Moderator: Mete Çakmakçı, TOBB Venture Capital Sector Assembly, Chairman Speakers: Hayrettin Demircan, Republic of Turkey Prime Ministry Undersecretariat of Treasury, Financial Sector Relations and Exchange, Deputy General Director; Cenk Emre, Monitor Group, Director;; Yavuz Eroğlu, SEM Plastic, General Director;; Ekim Nazım Kaya, Botego, Founder 45

46 Recent Developments of Entrepreneurship Policy in Turkey Establishment of Turkish Government Entrepreneurship Council With the initiative of the Ministry of Science, Industry and Technology, an Entrepreneurship Council was established in December Related public institutions and several NGOs including TOBB Young Entrepreneurs Board, TOBB Women Entrepreneurs Board and TOBB Venture Capital Industry Board became members of the council. The council s activities are coordinated by TOBB. New Legislation on Incentives for Angel Investors As a result of the meetings and studies conducted by the Undersecretariat of Treasury, a new legislation on angel investment was issued on 13 th June According to the new regulation, 75 percent of the tax on annual income from angel investment will be deduced. In case the company invested on had received grants from the Ministry of Science, Industry and Technology, TÜBİTAK or KOSGEB, the amount of deduction will increase to 100 percent of the annual income from angel investment. The related directive regarding the execution of the law has been announced on 23 rd July 2012 via the Undersecretariat of Treasury s web site. New TÜBİTAK Law Legislation targeting the functions of TÜBİTAK enabled the institution to invest in venture capital funds and provide financial support to the incubators. Regarding venture capital fund investments, the institution will receive proposals from managers of venture capital funds and invest in funds selected after the evaluation of these proposals. Apart from the change in the law regarding the institution s functions, TÜBİTAK is in the process of designing new program, with the name of 1514 Private Equity and Venture Capital Support Program. At the meetings that aimed the design of the new program, it was agreed that TÜBİTAK was to activate the private equity and venture capital system as much as possible, as well as providing operational assistance by providing deal flow. In this context, the establishment of a fund of funds and monitoring only the operations of the funds to be invested in were considered as possible parts of the design. 46

47 New Capital Markets Board Law With the amendment of the Capital Markets Board s Notifiction Regarding the Principles for Private Equity and Venture Capital Investment Partnerships, tax exemption was implemented for income from dividends of private equity or venture capital funds and partnerships, and equity shares. Valid starting from 1 st January 2013, these shares will be also exempt from corporate tax. 47

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49 GLOBAL ENTREPRENEURSHİP PROGRAM TURKEY 49