Syrian Entrepreneurship in Türkiye

Following the Syrian conflict in 2011, Türkiye became home to approximately 3.6 million Syrian refugees, making it the largest refugee-hosting country in the world. As these displaced individuals sought to rebuild their lives, many turned to entrepreneurship as a means of economic survival and integration.

Between 2012 and 2023, Syrians established over 10,000 companies, injecting an estimated TRY 2.7 trillion (TRY is the Turkish lira; USD 618 million) in registered capital into the Turkish economy. This figure, however, likely understates the true scale of investment, as many businesses register only the minimum required capital. Moreover, a portion of unregistered companies remains unaccounted for.

Most Syrian-led companies operate in three main sectors: wholesale and retail trade, manufacturing, and hospitality. 

Syrian-led enterprises have become essential job creators, with each business employing 7.3 or 9.2 individuals depending on two different surveys, meaning up to 92,000 jobs are directly tied to Syrian entrepreneurship in Türkiye. Beyond Syrians, who make up 60% to 67% of employees depending on various estimates, Turkish citizens fill the rest of the jobs. Through entrepreneurship, studies have shown that more than a quarter of a million Syrians in Türkiye, including workers and their families, benefit from the wages generated through this formal employment. 

Beyond direct employment, Syrian-led companies also contribute to the Turkish economy through their business operations and investments. A large share of these companies report that their suppliers are based in Türkiye, indicating strong integration with local supply chains and stimulating economic activity across various sectors. Furthermore, about 10% of Syrian-led companies have invested in real estate. This real estate acquisition represents a significant capital investment in the country and contributes to the local property market and potentially to urban development.

In fact, it should also be noted that Syrians could access work permits and property rights by establishing a company in Türkiye – blurring the line between the actual productive output linked to Syrian-owned businesses. However, only 5% of Syrian-led companies reported establishing their companies to acquire real estate. 

Syrian companies tend to be more export-oriented than their Turkish counterparts, with 55% engaging in exports compared to 31% of Turkish firms. More than one-third of companies established by Syrians report that at least 50% of their revenues come from exports. About 35% of Syrian-owned companies export to the Gulf and MENA region. There is also a positive correlation between the increase in Syrian enterprises in Turkish provinces bordering Syria and increased Turkish exports to Syria, with Gaziantep accounting for nearly a quarter of Türkiye’s total exports to Syria. This is especially significant for Türkiye as one of the reasons for the country’s economic crisis and current account deficit, driven by reliance on imports and insufficient exports.

However, over the past few years, the trajectory of Syrian entrepreneurship in Türkiye has been uneven. In 2013, Syrian refugees were founding companies at a rate of 0.084% per person, compared to 0.059% of Turkish citizens. By 2023, Syrian business formation dropped to 0.005% while the Turkish rate rose to 0.136%. 

The recent disparity points to growing barriers faced by refugee business owners. These include access to capital, local legislation, language barriers, limited access to formal banking services, and mobility restrictions due to residency requirements. Barriers such as limited capital and language, disrupted supply chains, and non-digital operational models also meant that Syrian-led firms were disproportionately impacted by the COVID-19 pandemic; 38% reported frozen operations in May 2020, compared to 30% of Turkish firms. As mentioned earlier, another key element is the obligation for companies engaging in productive activities to own real estate. 

Integrating Syrian entrepreneurs into the Turkish economy is not merely an economic issue but also a social and political one. Growing anti-immigrant sentiment has led to instances of violence targeting Syrian businesses, creating an atmosphere of insecurity. 

Syrian-owned businesses have significantly shaped local economies, particularly in export-oriented sectors. Yet these contributions have come amid growing challenges.

As Türkiye continues to grapple with the hefty costs of hosting millions of Syrian refugees, understanding the economic impact of Syrian labor and entrepreneurship offers critical insights and potential opportunities. This impact reaches beyond the business sector, influencing labor markets, international trade, and public policy. 

For more on Syrian employment in Türkiye, read Winners and Losers: Syrian Refugees’ Impact on Türkiye in last month’s edition of Syria in Figures.