Export potential of Turkish SMEs

Purpose- Digital channels are gaining more and more share from trade and commerce, especially after Covid 19 pandemic. People have adopted to online buying and marketplaces became important retailing tools for manufacturers. E-commerce is rising not only in closed commercial areas but also across different countries, even continents with developments in cross-border e-commerce. Governments, global digital platforms, consumer habits are creating and supporting the demand of buying online from anywhere and numbers are showing that this creates an opportunity for Turkish businesses to become exporters. This study aims to highlight the potential for small and medium sized businesses in Turkey to become exporters. Methodology- The study examines historical export growth data of Turkey in detail using secondary data. The historical data is used to make a projection for future and highlight the potential of growth for Turkish SMEs. Current marketplace platforms’ business models are also examined and carefully analyzed to present an understanding of the potential business models. Findings- The numbers are showing that Turkish exports are growing in Europe and USA. Capex heavy industries have the highest share among the exports but e-commerce is also growing. Some industries like textile, jewellry and small appliences has a higher growth potential withing cross border e-commerce. Conclusion- Adoption to online retail is getting higher and higher. More people are buying from online marketplaces and the origin of the transaction is losing its importance with one-day deliveries. It is important to open shops not only physical but also on different platforms. It is easier for business owners to sell across the world and become exporters. By having international customers, businesses distribute regional risks and also become financially stronger. It is important for Turkish SMEs to understand their risks and seek international growth opportunities, such as doing exports. Turkey’s unique geographical location is a very important asset but Turkish businesses should keep in mind that all international producers are now seeking opportunities to create through online platforms. Keywords: Turkish exports, online retailing, e-commerce, cross-border e-commerce JEL Codes: F23, L26, L81 Purpose- Digital channels are gaining more and more share from trade and commerce, especially after Covid 19 pandemic. People have adopted to online buying and marketplaces became important retail