Entrepreneurs' Financial Risks to Consider Explained in Büyük Kulüp Magazine.

The seminar titled "The G of Entrepreneurship," organized by the Büyük Kulüp Young Entrepreneurs Committee on Saturday, November 8, saw a high level of participation.

Successful entrepreneur Alper Akcan shared in an engaging way how he transitioned from his corporate career at Turkcell to becoming an entrepreneur and how he sold his company. Lawyer Fırat Kavlak discussed the key legal considerations when establishing a company and important legal aspects of making investments. İbrahim Arınç, partner at 3 Seas Capital, spoke about the mergers and acquisitions they have carried out to date. The panel, which concluded with a Q&A session in the last 15 minutes, attracted significant interest. To address frequently asked and widely discussed questions, another speaker of the seminar, Asım Anıl Dizdar, explained tax matters, key considerations in company formation, and obligations for entrepreneurs and SMEs to Duygu Eren, Chair of the Büyük Kulüp Young Entrepreneurs Committee.

Can you introduce yourself?

I started my professional career at Eczacıbaşı Group after graduating from the Business Administration Department of Kadir Has University. After one year, I began working as an audit assistant at the Türkiye office of Nexia International, an international audit firm. During my approximately six years there, I specialized mainly in the auditing of companies structured abroad, independent auditing, Capital Markets Board (CMB) reporting, and due diligence, and later transferred to PwC Türkiye. After working for 1.5 years as a Senior Auditor 2, we established Erta Independent Audit and Sworn CPA Ltd. towards the end of 2011, following the enactment of the new Turkish Commercial Code. In a short time, we became a specialized audit and consulting firm providing independent audit, financial advisory, certification services, corporate finance, internal audit and restructuring, management consulting, tax dispute services, and outsourcing to leading companies in Türkiye. In 2013, we supported the establishment of an independent audit network in Türkiye and joined the Yeditepe Network. Currently, I continue my professional career as a managing partner at Erta Independent Audit and as the head of international relations of Yeditepe Network.

What should entrepreneurs pay attention to financially when establishing a company?

From a financial perspective, the issues entrepreneurs should consider when establishing a company can be evaluated in two main parts: those to be considered before the establishment and those during and after the establishment process. Before establishing a company, entrepreneurs should first conduct a proper and realistic financial analysis. For this purpose, they should carry out a comprehensive SWOT analysis. During the establishment phase, choosing the appropriate company type and identifying tax advantages aligned with the business activity will help minimize financial risks. It is also important to evaluate whether the company will be subject to specific incentives, regulations, or advantages depending on its field of activity. For example, companies established in free zones or organized industrial zones are subject to different rules and processes. Additionally, reviewing incentives provided by the government, private institutions, or NGOs, structuring the company to benefit from such incentives, and selecting banks and accounts that will provide long-term advantages are key considerations for entrepreneurs.

What are the legal obligations that must be regularly fulfilled after establishing a company?

The main obligations applicable to all companies include tax declaration obligations to the government, mandatory notifications to relevant authorities under labor law, and obligations arising after registration with the trade registry. From a tax perspective, these include monthly VAT and withholding tax declarations, quarterly provisional tax returns reflecting corporate earnings, and annual corporate tax returns. In terms of labor law, companies must notify employees to the Social Security Institution (SSI) and regularly declare and pay related insurance premiums. Additionally, companies registered with the chamber of commerce are required to pay registration fees during establishment and annual membership fees thereafter.

How can SMEs manage their core financial risks?

The main reason behind SMEs’ financing problems is the weakness of their equity structures. One of the key criteria evaluated by rating agencies and banks is the level of working capital. SMEs with strong capital structures benefit from lower financing costs. However, SMEs often produce different financial reports (balance sheets, income statements, etc.) for different institutions. Issues such as non-creditworthy financial statements (negative equity, losses) and unrecorded transactions create significant challenges during the rating process. SMEs that are well-managed, properly financed, and able to provide complete and transparent financial and qualitative information on time are more likely to achieve better ratings and access financing under more favorable conditions.

Which financing methods are suitable for SMEs and entrepreneurs?

In addition to traditional financing methods, alternative options for SMEs and entrepreneurs include issuing shares through the Capital Markets Board (CMB), factoring, evaluating leasing options, and establishing partnerships with private equity funds. Furthermore, early-stage entrepreneurs can strengthen their capital structures through angel investor networks, foreign investment funds, and by selling shares in specialized markets such as Borsa Istanbul’s private market.

How can financial and accounting efficiency be improved?

The most fundamental factor in improving financial and accounting efficiency is auditing. Company owners should seek support from consultants capable of conducting technical analysis of their accounting and financial structures. Efficiency can be achieved through properly designed audit processes, establishing an organizational structure aligned with the company’s activities, and accurately analyzing financial data generated through accounting processes. While entrepreneurs are not expected to be accountants, they should have a basic understanding of accounting and tax matters. This knowledge is essential for minimizing risks and maintaining control over operations. Therefore, a well-audited structure should be established and continuously developed in line with the company’s growth and institutionalization.