However, due to various regulatory hurdles of doing business in Turkey, we started encouraging clients to also look at other countries in the region with more friendly international trade environments, like the United Arab Emirates.
Since then, we have successfully closed deals in this region for our clients. Depending on specific circumstances, we have encouraged them to further diversify into Latin America, Asia, or Africa. The benefits of diversification go beyond mitigating macroeconomic risk.
Having more than one “pot on the stove” increases the likelihood of advancing in one initiative, even while experiencing frustrating hiccups in another. This makes it easier to be patient through challenges, which is often difficult for entrepreneurs and business-owners eager to see their businesses grow.
With a considerable devaluation of the Turkish lira (23% in the last year alone), a destabilizing influx of Syrian refugees, and a serious and tragic attack in Ankara last week, expanding into Turkey is less attractive than a few years ago.
Our business is still growing, because we recognized the need to diversify our interests, and those of our clients, early on. While we maintain a long-term interest in Turkey and expect the situation to improve, this experience underscores the importance of diversification in global business expansion strategy.