Regional Business Opportunities in Türkiye: Istanbul, Izmir, Ankara, and Border Regions

Overview of Major Economic Hubs

Istanbul continues to be the undisputed leader of entrepreneurship in Türkiye. According to TURKSTAT, 25.8% of all new startups founded in 2024 were based in Istanbul, followed by Ankara (7.5%) and Izmir (6.5%). This concentration of activity is closely linked to factors such as market size, high-quality workforce, and advanced infrastructure that make these regions particularly attractive for new businesses.

The Current State of the Entrepreneurial Ecosystem

Türkiye’s entrepreneurship environment remains dynamic and resilient. In 2024, the startup birth rate rose to 15.8%, and new enterprises accounted for 4.9% of total employment. High-growth startups represented 14.4% of the total, while “gazelle firms” (those showing rapid growth within a short period) reached 2.4%.
The most active sectors for startups include manufacturing, wholesale and retail trade, and construction. These industries continue to drive innovation and job creation across the country.

New Opportunities for International Entrepreneurs

The launch of the Türkiye Tech Visa Program in September 2024 significantly improved conditions for global talent and technology-driven businesses looking to enter the Turkish market. The program offers a range of advantages for highly skilled professionals and tech companies:

• three-year residence and work permits
• streamlined family residence procedures
• exemptions from income and corporate taxes
• access to offices in technology parks and incubation centers
• comprehensive and free healthcare coverage

These benefits make Türkiye a distinguished destination for international tech entrepreneurs, enhancing its global competitiveness and helping local ecosystems integrate with global innovation networks.

Investment Climate Developments

In 2024, significant regulatory improvements simplified the operation of venture capital investment funds (GSYF) in Türkiye:

• the minimum share of portfolio companies that must be based in Türkiye was reduced from 80% to 51%
• the maximum share of total fund value that can be invested abroad increased to 15%
• new provisions allowed funds to invest in startups headquartered abroad but with core teams operating in Türkiye

These changes encourage greater international participation in the Turkish innovation ecosystem and expand access to global capital.

Economic Growth and Structural Progress

Türkiye’s economy grew by 3.3% in 2024, with an additional 3% year-on-year rise recorded in the final quarter. According to the Ministry of Trade, the services sector led this expansion, followed by construction.
Exports reached 261.9 billion USD, up 2.5% compared to 2023, while the current account deficit narrowed significantly from 40 billion USD in 2023 to 9.97 billion USD in 2024. These improvements demonstrate the ongoing recovery of Türkiye’s external balance and its increased integration in global trade networks.

Strategic Advantages for Investors

Türkiye stands out among regional economies thanks to its diversified industrial base, strategic geographic position, and strong transportation links to European, Middle Eastern, and Central Asian markets.
The country’s sustained investments in skilled labor and R&D have enhanced its innovation capability, supporting long-term competitiveness in technology and manufacturing. Its rapidly evolving innovation and technology infrastructure further reinforce Türkiye’s appeal as a regional hub for entrepreneurs.

Challenges International Entrepreneurs Should Consider

Despite ongoing reforms, foreign investors and entrepreneurs still face certain operational hurdles that may require careful planning:

• limited access to global payment systems such as PayPal and Stripe
• customs-related issues and import restrictions on specific technology products
• occasional website access limitations affecting digital operations
• unpredictable retroactive taxation for startups
• difficulties in securing office space within technoparks
• unclear legal frameworks regarding employee stock options and contractual agreements

Understanding these challenges and working with experienced local advisors can significantly mitigate risks and enhance success rates for newcomers to the Turkish market.

Conclusion

Istanbul, Ankara, and Izmir remain Türkiye’s leading entrepreneurial centers, each offering distinct advantages for different types of ventures. The period between 2024 and 2025 marked significant steps toward strengthening the national startup ecosystem, with initiatives such as the Tech Visa Program and updated venture capital regulations playing key roles.
While structural challenges persist, the ongoing commitment of government institutions and ecosystem partners shows that Türkiye continues to be a promising destination for international entrepreneurs seeking sustainable growth in a vibrant and expanding market.