Lack of access to advanced capital, technical capabilities
Turkey and Endeavor Insight, the research unit of Endeavor Global, came together and carried out a study addressing the Istanbul technology entrepreneurship ecosystem in 2019.
Eczacıbaşı Group was the main supporter of the study, which was carried out in cooperation with the Istanbul Development Agency (İSTKA), which operates in coordination with the Industry and Technology Ministry.
The details of the Istanbul Technology Map are available on this website prepared with the support of İSTKA. In order for the entrepreneurship ecosystem to continue to develop in a healthy way, it is necessary to reorganize the research and development (R&D) and other startup supports, to revise the regulations regarding technoparks and to discuss the legal regulations on the employee share option.
ENDEAVOR PROBLEMS SORTED
With the Istanbul Technology Ecosystem Report prepared as a result of this study, the situation, strengths and weaknesses of the sector were evaluated for entrepreneurs.
Conducted through one-on-one interviews with 200 technology entrepreneurs and about 20 investors and support organizations along with the open data of 865 technology entrepreneurs based in Istanbul, the study points out that the Istanbul technology entrepreneurship ecosystem continues to grow. The study further stresses that despite a decrease in the growth rate in the past few years, the biggest obstacle for entrepreneurs stands out as access to capital and technical skills and legal regulations.
Companies with high growth rates stand out mostly as companies operating in the fields of e-commerce, software as a service (SaaS) and payment infrastructure. Meanwhile, the entrepreneurial support infrastructure of Istanbul is growing rapidly, while the number of supporting institutions, which was five in 2010, increased to over 80 at the end of 2019. An incubator and acceleration center accounts for each of the 12 domestic technology startups in Istanbul.
The recent negative economic developments adversely affected the capital inflow from abroad to Turkey. However, Turkey also has strong local resources and the potential to create growth space for entrepreneurs. Decision-makers who want to support public, private and technology entrepreneurs need to strive to grow the capital available in Istanbul.
Although Istanbul has an important competitive advantage for technical talent, the human resources in the technology sector are few and continue to decrease gradually. Keeping talent in Istanbul and supporting its development is a primary priority of the technology venture ecosystem. Endeavor Insight studies conducted in the past revealed that comprehensive regulations on employee share options and financial incentives for the recycling of human resources are important tools for the employment and protection of employees.