HSBC’s new “Navigator – Now, next and how for business” report, draws from a survey of over 10,000 companies in 39 countries and territories including Turkey to find out how businesses are responding to the ongoing challenges and preparing for the future.
The report shows that 68% of Turkish businesses anticipate revenue growth in 2021. However, half of them are expecting >5% growth. The top strategies to benefit from growth drivers or to address threats are expanding to new markets, cutting cost and improving cash flow.
73% of Turkish businesses think that international trade has become more difficult and see further challenges in 2021 while 66% of them are positive in their outlook for international trade over the next 1 – 2 years. Going forward, markets in Europe continue to be the top targets for expansion followed by APAC. Companies in Turkey are expanding to other markets based on proven/growing customer demand in this market, access to new suppliers/partners, their products or services are superior to current offers in this market and the market is an innovation hub.
Supply chains are a universal concern for companies in Turkey and the most important concerns are increasing costs, supply chain stability and suppliers being too distant from target customers or from their business. To alleviate these concerns, 97% of companies have made changes to their supply chain over the last year.
Going forwards, the immediate priorities for 2021 will include;
- Usage of digital/technology
- Selection of suppliers in markets with effective mechanisms for controlling future pandemics
- Selection of suppliers based on their operational resilience and ability to deliver quickly
The main benefits expected from making these changes are reduced costs, reduced exposure to a single market and increased speed to market.
86% of companies in Turkey expect sales growth over the next year, from a greater focus on sustainability. More than 70% of Turkish businesses have set targets for broad range of aspects of ESG. Almost all companies in Turkey think there are multiple opportunities for their business from improving their environmental and ethical sustainability most notably in enhancing reputation. Increased customer demand, which is one of the key opportunities identified. Government incentives, collaboration with adjacent businesses/ suppliers, investor/ shareholders commitment to the cost and resources to becoming more sustainable and green financing are important to helping businesses become more sustainable.