Local Turkiye

We are launching our First Step to Export in 81 Provinces Program: Pekcan, Trade Minister

Ruhsar Pekcan, the Minister of Trade, in her speech at the First Step to Exporting in 81 Provinces Program Promotion Meeting held in the Presidency Dolmabahce Work Office, stated that this program was launched to improve and increase Turkey’s exports.

Minister of Trade Pekcan: We are launching our First Step to Export in 81 Provinces Program

As it can be understood from the name of the program, Minister Pekcan stated that the ministry will support the exporting-firms in 81 provinces and work with them in making their first exports; the ministry will support firms that have not exported yet, but have export potential. Pekcan said:

‘’Our program will be the most meaningful export mobilization program implemented in the history of economy, with its feature expanding throughout Anatolia with 81 provinces. We evaluate it this way and expect it to affect the whole country and our exports.

Spreading our exports to the base has always been one of the priorities of our ministry. We are as excited and proud as our companies that are preparing to take the first step to export.’’

‘’The number of our exporters exceeded 43 thousand in October, with an increase of 5.8 percent compared to last year.’’

Pekcan stated that only 8.7 percent of 403 thousand companies operating in the industrial sector were exporting in 2019 and that the low rate of exporting companies in a sector such as the industrial sector, which is the heart of the economy, prompted them to do detailed studies.

Explaining that 70 percent of the industrial sector exports are made by large-scale companies with more than 250 employees and micro enterprises with 10 or less employees get a 4 percent share from industrial products exports, Minister Pekcan continued as follows:

“Of course, in line with our goal of spreading exports to the base, there has been a significant increase in the number of our exporters since 2018. For the first time in 2018, the number of exporters exceeded our importers. In October, the number of our exporters exceeded 43 thousand, with an increase of 5.8 percent compared to 2019. Considering the large population and large production capacity of our country, we aim to spread exports to as wide as possible and to make all our companies have export potential. With this great program we are promoting today, we are making a new breakthrough in expanding our export base and making our non-exporter companies exporters. We aim for our companies to make their first exports and to ensure sustainability.’’

Pekcan emphasized that many of the projects they have carried out as the Ministry so far are compatible with the goal of directly or indirectly spreading exports to the base, and said:

“We launched our Virtual Trade Academy in March. We also provided foreign trade, domestic trade, and entrepreneurship trainings in our Trade Academy. More than 22 thousand users have benefited from these trainings so far. ‘’

‘’Exporting and trading has now become much easier in Turkey.’’

Minister Pekcan noted that they have put into use “Kolaydestek.gov.tr”, which offers export support to companies in a user-friendly and brief manner, including the support they provide in the service sector, and that they have reached over 350 thousand users.

Pekcan pointed out that they digitalized the Ministry’s support within the support management system program; from now on, every person who wants to benefit from the export state support of the ministry can apply online from their home or office, without visiting the ministry, and also can follow the process and conclude it, Pekcan said:

“In August, we launched the Easy Export Platform for our exporters. In this project, we commissioned the Smart Export Robot. We offer market suggestions on the basis of product and sector to all our exporters with its infrastructure by using extensive technological facilities such as artificial intelligence and machine learning. We will complete the second phase as soon as possible and share with you the importers in those markets. We also share all kinds of technical information, legislative information, and instant field information we receive from our consultants, from the initial stage of the export to the completion of the export, on the Easy Export Platform. The platform guided nearly 70 thousand people and companies in just 2 months. Likewise, 42 thousand people benefited from the trainings on the E-Commerce Information Platform, which can be accessed from eticaret.gov.tr. Within the scope of our Export Academy and Women Entrepreneur Network programs, training, mentoring and network supports have been provided to more than 4200 entrepreneurs and entrepreneur candidates up to now. All these activities were aimed at raising technical awareness and raising awareness regarding our foreign trade. We have also completed many projects to accelerate the digitalization in Turkish trade. Exporting and trading has now become much easier in Turkey due to these projects.’’

‘’We are launching our First Step to Export in 81 Provinces Program.’’

Minister Pekcan stated that they have made a serious breakthrough in providing information with over 40 digital services they provide to companies, also that the quality and scope of the service they offer to exporters and entrepreneurs with export targets via these projects have gained serious momentum, Pekcan said:

“Today, we are launching our First Step to Export in 81 Provinces Program, which is a program that will complete all of these studies and projects by going directly to the field and operating on a company basis. Thanks to our First Step to Export in 81 Cities Program, we will carry the breakthrough to the field of operation.  We will go beyond presenting information to our companies and prepare them for export in cooperation with our producers. This project will be specially prepared for every company; accordingly, we will provide special consultancy services to every company.

We will reveal the needs of each company one by one and ensure that they become exporters in a continuous interaction. In a strong cooperation with our stakeholders in each city, we have created special work plans for our companies. We meet with our companies one by one to determine their needs and identify the right people who will help them overcome the obstacles to export and mentor them. The determined guides will be in constant interaction with our companies for 6 months and will guide them in exporting. ‘’

‘’We will award the best mentor and company after the 6 months of the program.’’

Minister Pekcan stated that within the scope of the program preparations, they also examined the similar programs in different countries, especially the USA, England, and Ireland, which have public models that successfully implement this work. Explaining that generally, these programs progress in the form of creating a pool of mentors and choosing mentors by applying to these programs, Pekcan said:

 “We have blended the best practices of all these sample models from different countries in our own project. We do not expect companies to apply as exporters, we identify our companies from capacity reports, social insurances, and production technologies. Most of our companies do not even know that they have been detected. We will meet with these companies one by one and include them in the program.

We included our favourite aspects of these different sample programs in our program while examining the best examples in the world; for example, we will give a limited number of companies to a mentor like in the USA and in that way, we will make that company and the mentor work harder. There is a minimum duration of mentoring sessions in Ireland; accordingly, we determined the duration of weekly sessions. We will consider the best mentor and company match jut like in the UK and will award them after the 6 months of the program.’’

‘’ The project has been on hold for 6 months due to the pandemic.’’

Stating that they announced this important program to the public for the first time, Pekcan noted  that they have matured the project for a long time and that they have been delaying it due to the pandemic for 6 months. She said:

‘’ We have identified every non-exporting company although they have the potential to export with the works we are currently carrying out in 40 provinces. We have identified 7 thousand 277 companies that are potential exporters in 40 provinces; these are the companies that cannot export although they have production capacity.’’

‘’We determined 2 thousand 773 companies with export potential in 5 provinces.’’

Stating that they examine the characteristics of the companies with a holistic approach, Pekcan explained that they analysed the needs by talking to the companies. Noting that they determined 5 pilot provinces to implement such a comprehensive program, Pekcan said:

“We start from Adana, Kahramanmaraş, Konya, Manisa and Samsun, but our goal is to carry this program in all 81 provinces. There are 6882 companies with capacity reports in these 5 pilot provinces; we determined that 2 thousand 773 of these companies have export potential.

We will continue our practices in 5 provinces before spreading the program in order to provide the best possible structure. Currently, we have prepared the work of 70 provinces. We will reveal the most successful program design for 81 provinces in the upcoming period.’’

Pekcan pointed out that the ministry and the stakeholders will broaden the program across Turkey after successfully laying the foundations, she said:

‘’ We have 16 thousand 570 companies with capacity reports in 40 provinces and among them, we have determined 7 thousand 277 non-exporting companies although they have the potential. As of now, in the second phase of the study, we have identified 11 thousand 444 companies that are potential exporters in 70 provinces. We have also completed their analysis. We will quickly complete our analysis for 81 provinces in the upcoming period.’’

‘’We will determine the road maps suitable for company needs.’’

Ruhsar Pekcan stated that they observed the production and export capacities of companies; they technologically grouped the productions of companies in 40 provinces in 4 classes. Pointing out that companies producing high-tech products will be included in the pilot implementation, Pekcan mentioned the stages of the First Step to Export in 81 Provinces Program and said:

‘’ We will start with the selection of the company that meets the data criteria for our program. Then, we will make one-to-one needs analysis with each company. In line with these needs, we will determine the mentors suitable for the needs of the company. At the end of 6 months, we will evaluate the program and determine the road maps for our companies in 81 provinces. I would like to share with which criteria we determine the companies that will be included in the pilot application. We have carried out a serious work to have a distribution that represents all our companies. We have put forward criteria such as the number of employees of our companies, the technology classification of the products they produce, their sectors, and the province in which they are located. Thus, we will advance this project in a certain systematic way when we expand the program across Turkey.’’

‘’We will start the program by matching our companies with their mentors.’’

Minister of Trade explained that once the companies to be included in the program are selected, the obstacles to export will be determined, the areas open for improvement will be determined and the expectations of the company from the program will be determined, and in this way they will complete the needs analysis phase.

Stating that they will have all the necessary outputs to ensure the most accurate mentor-company match within the framework of the needs analysis, Pekcan said that the most important feature that distinguishes this program from the work they have done so far is analysing the special needs of each company; she emphasized that this one-on-one interaction is the actual difference between the program and the general trainings the Ministry has given so far. Pekcan:

‘’ We create a private mentor pool suitable for companies through one-to-one meetings with our companies and we start the program by matching our companies with their mentors. We will make sure that our mentors have the necessary knowledge and experience. At the end of the day, perhaps the most important criterion affecting the success of the program is working with the right people who are experts in their fields. We will bring the suitable experts together with the companies needing expertise.

Within the scope of the program, our mentors will work with our company for at least 4 hours per week for 6 months. They will be in constant interaction and overcome the obstacles one by one. We plan 50 percent of these interviews face-to-face and 50 percent online. Of course, we continue as far as the pandemic conditions allow, but we do not want to delay the project even more.’’

‘’We will allow exemption from insurance buyer analysis fees.’’

Ruhsar Pekcan stated that a firm can benefit from more than one mentor and that the mentors and companies will report the developments monthly to ensure the traceability of the program. Noting that the companies participating in the program can benefit from all opportunities offered by the Ministry of Commerce, Pekcan pointed out that firms will also be able to reach trade consultants around the world. Pekcan continued:

‘’The companies participating in the program will be able to receive information about the target countries with the ‘identity routing cards’ that will be specially prepared for them by getting one-to-one support from the experts of the Ministry. In these ‘identity routing cards’ our companies will make the most accurate market shares for their products. Maybe this is the 2nd stage of the Easy Export Platform. We will be able to complete it within this year and even share a customer list with the companies.

In addition, we will be guiding firms to use the digital platforms of our Ministry in the most effective way. In addition to these, we will also have special support from Eximbank to our companies participating in the pilot implementation. First, a special customer representation office will be established in Eximbank for this project. We will give priority to our companies within the scope of this project in their applications for credit and insurance products. We will provide exemptions from insurance buyer analysis fees. We will prioritize insurance claims and Eximbank products for currency risk management. We believe that these facilities will guide these companies in the first step towards exporting.’’

‘’ The program will revive the master-apprentice relationship in exports. ‘’

Minister of Trade stated that they will gather all mentors and companies to share all their experiences in the 5th month of the program and thus identify the strengths and weaknesses of the program.

At the end of the program, Pekcan stated that they will award the most successful company and mentor match by examining the country they export to, the number of companies and products they export to, whether they start exporting or not, and said:

‘’First Step to Export in 81 Provinces Program will revive the master-apprentice relationship in exports. Export experiences will spread among our companies. Our mentors will shed light on our companies on their export journey and we believe that the export attacks of our companies with this potential in 81 provinces will motivate our other companies. They will also be able to enter this portfolio. We believe that they will develop their capacities in this direction. We aim to successfully complete the pilot scheme covering 5 provinces as soon as possible and continue our way in 81 provinces.

There is no safer source than experience in exporting. We will make our export family gain new members in various sectors by working one-to-one with our local companies, analysing their needs, providing competency support. We will expand our export family. Turkish exports will continue to grow. We are working to increase the production of domestic and value-added products in our exports day by day. At the same time, we are working to increase the share of medium and high technology in our exports. Our hand will be strengthened in line with these goals in order to bring new members to our export family.’’

Ruhsar Pekcan:

‘’As the Ministry of Trade, we started the program to discover non-exporting companies from 81 provinces in order to open their horizons and give them the courage and direction they need to export. As President Erdogan also mentioned in the ‘Economic Mobilization’, we are starting the ‘Export Mobilization’ across Turkey. We will be sharing new production and export stories that have blossomed in our provinces and districts by expanding this project in 81 provinces. I hope that the export mobilization will be beneficial for our country, nation and business world.’’

source: AA / translated by Melisa Karayusufoglu

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