BUSINESSLIFE FILE: : ETHNIC ECONOMY IN NORDIC COUNTRIES. More Prosperous, Fully Integrated Europe with Turkey

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1 ISSN N O R D I C BUSINESSLIFE Issue 2 / April - May - June 2013 More Prosperous, Fully Integrated Europe with Turkey Turks in Sweden: Bridge between two Partners Excellent Prospects for Expanding Turkish-Swedish Trade and Investments Make it in Copenhagen - the economic contribution of migrants FILE: : ETHNIC ECONOMY IN NORDIC COUNTRIES

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3 T HE N ORDIC T URKISH B USINESS P LATFORM ICELAND SWETURK Swedish Turkish Business Federation SBN Stockholm Business Network STURF Svensk Turkiska Företagarföreningen STBC Swedish-Turkish Business Cooperation HBF Helsingborg Business Forum NBF Nord Business Föreningen FINLAND FITIAD Finnish Turkish Business Association STYY Suomi Turkki Yrittäjäin Yhdistys LTL Lahden-Turkin Liikemiesyhdistys EESTURK Turkish Trade Education and Culture Association in Estonia MTI Menningarfelagid Tyrkland-Island NTH Norwegian - Turkish Chamber of Commerce NEHF Norge Eurasia Handels Forening DNF Drammen Næringsforum MNF Moss Næringsforening NORWAY DENMARK SWEDEN DATIFED Danish Turkish Business Federation DATIAD Dansk Tyrkisk Arbejdsgiverforening AKTIF Aktiv Iværksætter Forening FAIF Fyns Aktiv Iværksætter Forening RSIF Region Sjælland Iværksætter Forening JTAC Jyllands Anatolia Trade Chamber ESTONIA LATVIA LITHUANIA LATUA The Association of Latvian - Turkish Businessmen BELARUS BETID Turkish Businessmen Association in Belarus LITUVA Turkish Businessmen Association in Lithuania THE NORDIC TURKISH BUSINESS PLATFORM Tel: Rathsacksvej 8, 1862 Frederiksberg C / DENMARK

4 N O R D I C BUSINESSLIFE Issue No APRIL, MAY, JUNE EDITOR IN CHIEF Musa UYAR ASSOCIATE EDITOR Samet TOSUN FILE EDITOR Ali Rıza ONAY EDITORIAL BOARD Aykut Fahri KILIÇ Taner YILMAZ Emre OĞUZ Prof. Dr. İbrahim ÖZTÜRK Dr. İlhami FINDIKÇI Kutay KAVUKÇU ADVISORY BOARD Prof. Dr. Safet BEKTOVİC Prof. Dr. Sedat MURAT Ole Egebjerg MİKKELSEN Vedat OĞUZ Mehmet BÜYÜKEKŞİ Dr. Zeynel Abidin ERDEM Ali Rıza ARSLAN Dr. Adem KUMCU Ayşe TÜRKMENOĞLU Hüseyin ARAÇ İbrahim KAPAKLIKAYA Yıldız AKDOĞAN Erik BOEL MD. Fuat GÜDER DIRECTOR Selahattin ATICI ADVERTISEMENT Özkan EKİZ DESIGN Çağlar SAY PRINTED AT COMBINE PRINT & DESIGN OWNER DATIFED on behalf of UNITEE - Nordic Turkish Business Platform CONTACT Tel: Rathsacksvej 8, 1862 Frederiksberg C / DENMARK MEMBERS & REPRESENTATIVES DENMARK Özkan EKİZ SWEDEN Mahmut KALKAN NORWAY Salim ÖNDEŞ FINLAND Süleyman PINARLI ICELAND Ahmet ÖZDİLEK BALTIC Mehmet Ali SAVRAN BELARUS Veysel ÖVÜR TURKEY Salih BEŞİR nordicbusiness.net 2013 NORDIC BUSINESS LIFE All rights reserved. No part of this publication may be reproduced, duplicated, copied, sold, resold, visited or otherwise exploited for any commercial purpose without the prior permission from the Magazine Editors.

5 WELCOME President of UNITEE The Nordic Turkish Business Platform Musa UYAR Dear friends, We are pleased to publish the second edition of Nordic Business Life. I have to mention that there was a remarkable interest to the first issue of our magazine. Beside the file subject of our first issue, Turkish Entrepreneurship Anatomy, the other articles were instrumental in the emergence of very useful topics. With the help of this study, we had the opportunity to see the anatomy of entrepreneurs of Turkish origins living in Northern European countries, The New Europeans, with clear data. I believe that these data will serve as a road map in the coming studies. We analyzed Ethnic Economy in Nordic Countries as a file subject in the second issue of our magazine. Living in this country for half a century and having Anatolian roots, The New Europeans with young and dynamic human resources are the architects of the commercial bridges between Europe and Turkey, and other countries while providing significant contribution to the European economy. Business trips with the businessmen of the region under the leadership of the Federation and Associations that are members of The Nordic Turkish Business Platform, European Turkish Business Summit which will be organized between 3 and 5 May 2013 with the cooperation of DATIFED and The Danish Chamber of Commerce and finally Business Forums which will bring together Confederation of Danish Industry and Turkish businessmen from İstanbul, Ankara and İzmir, lay the groundwork for crucial collaborations and establishment of relationships. Esteemed Readers, Ethnic Economy in Nordic Countries is presented with a detailed study as file subject which is meticulously prepared by Ali Rıza ONAY, the file editor of second issue of our magazine Nordic Business Life. Each of articles is very valuable. I would especially recommend you to read the article More Prosperous, Fully Integrated Europe with Turkey by Mr. Eğemen BAĞIŞ, EU Minister of Republic of Turkey. I would like to express my sincere thankfulness to him for his article and valuable contribution. Furthermore, in the articles section of our magazine, you can find Turks in Sweden: Bridge between two Partners article by Ms. Zergün KORUTÜRK, Ambassador of Republic of Turkey to Sweden, Excellent Prospects for Expanding Turkish- Swedish Trade and Investments article by Mr. Håkan ÅKES- SON, Ambassador of Sweden to Turkey, Migrant Economy in Europe a Policy Perspective article by Dr. Adem KUMCU, President of UNITEE, The Role of Civil Society Organizations in Business Relations between Europe and Turkey article by Mr. Rıza Nur MERAL, TUSKON President, Make it in Copenhagen article by Mr. Frank JENSEN, Lord Mayor of Copenhagen, Servant Leadership article by Dr. İlhami FINDIKÇI, Behavioral Sciences Specialist, Being a Leader article by Mr. Kutay KAVUKÇU, Novo Nordisk Global Leadership Development Consultant, Hidden Beauties, Afyon travel and introduction article by Mr. Hasan SARITEPECİ. I would like thank to all our valuable experts for their articles. In news section, our magazine contains NBL Magazine first issue introduction meetings in Denmark, Finland and Sweden, Mr. Recep Tayyip ERDOĞAN s, Prime Minister of Republic of Turkey, Business Trip to Denmark, Iceland Business Trip organized by DATIFED and other news related to the business world, and news related to the activities done by member associations and federations. Dear Friends, We put great value in permanence, continuity and ensuring the sustainability. The most important source that develops and enriches the Periodicals is the criticism of you, our esteemed readers. For this reason, we are waiting your valuable contributions and feedbacks. I would like to thank with my whole heart to editorial board members for their hard work in the preparation process of the publication of our magazine and our esteemed friends for their contribution with their articles and consultancy. With the will and hope of meeting again in the third edition of our magazine where the file subject will be Trade Volume between Turkey and the Nordic Countries Please do not forget that the road to success is rough. We will certainly be exhausted, but we will NOT GIVE UP. Sincerely, WE ACCOMPLISH HARD WORK, IMPOSSIBLE JUST TAKES SOME TIME. Editor in Chief Musa UYAR

6 INDEX 7 EDITORIAL PREFACE 8 FILE - Ethnic Entrepreneurship in Nordic Countries 16 ARTICLE - More Prosperous, Fully Integrated Europe with Turkey 18 ARTICLE - Turks In Sweden: Bridge Between Two Partners 20 ARTICLE - Excellent Prospects for Expanding Turkish-Swedish Trade and Investments 22 ARTICLE - The Role of Civil Society Organizations in Business Relations between Europe and Turkey 24 ARTICLE - Migrant economy in Europe a policy perspective 28 ARTICLE - MAKE IT IN COPENHAGEN 30 ARTICLE - Ethnic entrepreneurship in Denmark: wide-ranging opportunities and positive trends 34 ARTICLE - On the Importance of Business Networks in Contemporary Global Business Environment 36 ARTICLE - Being a Leader 38 ARTICLE - Investment Climate inturkey 44 ARTICLE - İzmir is Destined to be The Winning Candidate 46 ARTICLE - İnsanİ Krİz ve Hİzmetkâr Lİderlİk 48 ARTICLE - Genç Gİrİşİmcİlere Tavsİyeler 54 INTERVIEW - Bİr Başarı Hİkayesİ, MESUT ERKAN 56 NEWS 64 Hidden Beauties - AFYONKARAHİSAR THERMAL CAPITAL OF TURKEY EthnIc EntrepreneurshIp In NordIc CountrIes More Prosperous, Fully Integrated Europe with Turkey NEWS Turks In Sweden: BrIdge Between Two Partners Excellent Prospects for ExpandIng TurkIsh-SwedIsh Trade and Investments HIdden BeautIes - AFYONKARAHİSAR THERMAL CAPITAL OF TURKEY

7 EDITORIAL PREFACE Ethnic Economy In Nordic Countries Labor and Social Security Counsellor of Turkey, Copenhagen Ali Rıza ONAY Within the context of self-employment, despite the percentage of ethnic entrepreneurship in Nordic countries is higher than the natives, the employment capacity and economic power of the ethnic entrepreneurship still remains low. There has not reached at the required level for the immigrants in Nordic countries by increasing their awareness to benefit from supports and incentives and showing entrepreneurial courage to establish their own businesses yet. The vast majority of them have migrated to these countries without any professional qualifications and started to work in ordinary jobs. The immigrants coming to those countries due to labour migration, family reunification, illegal immigration, asylum and etc. have been trying to participate in social and economic life. They have experienced some structural problems in the communities in which they face with higher unemployment rates than the national average, social exclusion and discrimination, difficulties in labour market arising from lack of qualifications. Besides these negative experiences, cultural values as internal solidarity stemming from same ethnicity, informal communication among themselves, strong family ties and etc., have aimed ethnic entrepreneurship at them to establish their own businesses as self employed. The reasons why those people have had a tendency towards self-employment and establishing such a small-sized enterprises are: - having commonly-held belief that the earnings in their own businesses would be higher than the earnings in a firm, - having a belief that the incomes earned from self-employment could be widely accepted in terms of religious and cultural values, - being a low profile professional (such as coiffeur, repairman and etc.) in their homeland, - providing ethnic-based goods and services to people coming from same country or regions. Within the context of self-employment, despite the percentage of ethnic entrepreneurship in Nordic countries is higher than the natives, the employment capacity and economic power of the ethnic entrepreneurship still remains low. In terms of ethnic entrepreneurship, the immigrants and their descendants focus on the sectors and sub-sectors which are listed as restaurant and food services industry (cafeteria, pizza/kebab restaurants etc.), wholesale and retail sale (minimarkets, greengrocer, kiosks etc.), commercial services sector (cleaning services, ethnic clothing, automobile, bicycle/motorcycle repairing etc.), transportation, communication and telecommunication services (mobile phones, computer repairing, purchase and sale of gold, silver, jewellery and watch shops, exchange offices and travelling agencies). As is seen, the managers and the owners of the businesses which do not require overcapitalization, professional qualifications and official regulation and which mainly requires labour intensive activities are the same persons work together with their family members. In this regard, the developments concerning ethnic entrepreneurship in the Nordic Region will be expressed below. ISSUE 2 - APRIL, MAY, JUNE

8 FILE Ethnic Entrepreneurship in Nordic Countries Denmark The first immigration movement to Denmark started in the late 1960s and the early 1970s with the recruitment of guest workers who came mainly from Turkey, Pakistan, (former) Yugoslavia and Morocco. At the time of the first oil crisis in 1973, Denmark ended its guest worker migration program. The early immigration movement started with the recruitment of guest workers stemmed from the economic expansion of Denmark required more labour force than the nation could supply, whereas the immigration process during the post-1973 period was mainly based on family reunification and foreign skilled labour. The refugees from Chile and Vietnam in 1970s, from Bosnia, Iran, Iraq, Somalia, Afghanistan and Lebanon in 1990s, and recently from African countries migrated to Denmark. In the course of time, the Immigration Law in Denmark have increasingly been tightened through amendments, not only for the admission of immigrant workers and refugees, but also for members through family reunification. While only 3.1% of Denmark population in 1983 was immigrants, the percentage has increased by 10.7% within 30 years. Quantitatively speaking, the number of immigrants has soared from to in that period. The first detailed statistical data on ethnic entrepreneurship among immigrants accounted for 10.7% of the total population in Denmark was released in In that time, in Denmark, - shops such as cafeteria, grill/barbecue were run by Chinese (31.1%), Iranians (%22.4%) and Turks (14.1%); N O R D I C 8 BUSINESSLIFE

9 - minimarkets and kiosks were run by Pakistanis (25%) and Iranians (8,7%); - food and nutrition shops were run by Pakistanis (13,7%) and Turks (9,7%); - commercial services sector was run by former Yugoslavians (18.8%) and Iranians (9.5%); - restaurants were run by Chinese (7.9%) and Iranians (6.4%). Moreover, the percentage of these ethnic groups in retail sales, trade, cleaning, transportation and manufacturing industries were very low. Another important study on this issue was conducted by Danish Business Authority (Erhvers- og Byggesstyrelsen) in A further look at the study indicates the percentage of entrepreneurs/self-employed in economically active population among native Danes was 6.6%, whereas it was 12.7% among Turks, 11.4% among Far Easterns (Chinese, Vietnamese, Hong Kongese, Taiwans); 16.5% among Pakistanis, 15% among Iranians, 4.8% among former Yugoslavians, %17.3 among Iraqis, 14.7% among Palestinians, 10.2% among Afghanians and 1.2% among Somalis living in Denmark. According to Statistics Denmark s latest survey on immigrants and labour market, called Danmarks Statistik, Indvandrere i Danmark 2012, as of 2011, the percentage of selfemployed among immigrants aged years were higher than native Danes. The percentage of self-employed among Western immigrants was 7.4%, whereas it was 10.4% among non-western immigrants and 6.6% among native Danes. Among Western immigrants, Netherlanders, who are mostly farmers, are the leading self-employed groups with 25 %, whereas Ukrainian, Bosnia-Herzegovinian and Romanian immigrants have the lowest percentage in terms of self-employment with 3 % for each. Additionally, the self-employment among Germans and Poles are 8 % and 4 %, respectively. As for non-western immigrants, Lebanese and Pakistanis are the two leading self-employed groups with 20% and 19 %, respectively. Moreover, the percentage and number of selfemployed Turks is 16 % numbered as The great majority of self-employed Turks are mainly working at pizza and grill restaurants, whereas the rest is working in the cleaning, trade, travelling agency, transportation (taxi driver) sectors. The great majority of self-employed immigrants in Denmark are working in the retail industry and hotel and restaurant services with 34 % and 31 %, respectively, while it is 3,8 % among native Danes. On the other hand, the incomes of self-employed immigrants are lower than that of self-employed native Danes and the incomes of those immigrants who are employees. Adversely, the income of self-employed native Danes is higher than that of native Danes who are employees. Number of self-employed and their share among the total employees aged years. (as of 2011) Number of Self- Employed Number of Employees Number of Total Employees Percentage of Self- Employed Western Immigrants Male Female Non-Western Immigrants Male Female Danes Male Female (Source : Danmarks Statistik, Invandrere i Danmark 2012, Pg. 36) ISSUE 2 - APRIL, MAY, JUNE

10 FILE Sweden Sweden became a major destination for refugees during the Second World War. After the war, the great majority of the refugees returned back to their homeland but a good number of refugees who mainly came from Estonia remained in Sweden. This immigration flow continued in the late 1940s with a policy of actively recruiting foreign workers to the manufacturing industry in Sweden. In the 1950s immigration from neighbouring countries especially from Finland to Sweden became important. As immigration from Finland in 1960s continued, but many people from Yugoslavia, Greece and Turkey and reached a record level at the early 1970s. As a result of high unemployment in Sweden, partly due to strict restrictions on migration rules decreased the foreign labour immigration. On the other hand, refugee admission took place from Latin America in the 1970s, Middle East and Iran in the 1980s, (former) Yugoslavia and Africa in the 1990s. At the same time, a gradually increasing inflow of family members started to migrate to Sweden through family reunifications. As a result, Sweden became a country with a large foreign-born population with origins in many parts of the world and the second generation immigrants are a fast growing group. to create new opportunities for them and to overcome problems arising from the social and economic life. In Sweden, the great majority of the immigrants work in retail sales and hotel and restaurants. Some of them use their previous experiences to run these enterprises and work with their family members and relatives. In a study of OECD conducted in 2008, the share of self-employed natives among the total employment is 8.5 %, whereas this share increases by 10 % for the foreign-born. Like in Denmark, immigrants from non-western countries are overrepresented among the self employed immigrants. According to a study conducted in 2004 (Andersson and Wadensjö, 2004), the share of self employed immigrants from non-western countries in the total self employed persons in Sweden is 3.5 %. This rate is higher than native Swedish. The self employed immigrants are overrepresented in retail sales with 27.2 % and in hotels and restaurants with 21.5 % when compared to natives in these sectors 14.9 % for retail sales and 1.9 % for restaurants. In Sweden, self-employed immigrants have lower incomes than the immigrants who have other type of employment and self-employed natives. The share of immigrants among the total population in Sweden is about 17 %. So the number of immigrants has exceeded 1.6 million in 9.5 millions of total population in Sweden. Among the immigrants, the percentage of immigrants coming from Finland is more than the immigrants coming from other Western countries. In parallel with the increase in the number of immigrants, the ratio of self-employed workers among the immigrants has progressively increased. The number of Swedish people who establish small-sized businesses as self employed has decreased, whereas the number of self employed persons among the immigrants has increased N O R D I C 10 BUSINESSLIFE

11 Finland Finland has been an emigration country until the 1980s. Due to its late industrialization process and strict immigration policies, Finland has not experienced major immigration flows. After staying 600 years in the reign of Swedish rule, the country, Finland, was given to Russia in Until gaining independence in 1917, there were foreign residents of in Finland, most of them were Russians and others were composed of Swiss cheese makers, Bavarian beer producers and Italian ice cream makers. From WW2 to 1970, there has not only been immigration, but also the number of immigrants declined. A group of refugee was admitted from Chile with the refugee policy taken place in 1971 however, this policy was suspended until With the recognition of refugee status for a new group of Vietnam, this policy was put into force again. Another immigration flow became in 1990 with the law allowing the immigration of ethnic Finnish Ingrians from Russia and Estonia. Second important immigration flow took place with the settlement of refugees from Somalia by the decision of UN High Commissioner for Refugees in 1991 and the number refugees are more than 3000 currently. Again in 1991, after the dissolution of Soviet Union, a small group of immigrants along with (former) Yugoslavia and Middle East were accepted into the country. Ethnic entrepreneurship was shown up during the economic recession in 1990s and high unemployment rates among the foreign nationals forced them to establish their own businesses as self employed. The immigrants have been more likely than native Finns to work as self employed since 1990s. In a study conducted by OECD (International Migration Outlook 2009 and 2011 SOPEMI) the share of self-employed immigrants in the total em- ISSUE 2 - APRIL, MAY, JUNE

12 FILE ployees is 14.1 % whereas the share falls to 9.6 % among the native Finns. Estonians are the main ethnic group among the self-employed immigrants and are followed by Russians, Swedish, Somalis, Chinese, Iraqis, Thais, Turks and others in Finland. The share of non-western among the self-employed immigrants is higher than the share of self-employed immigrants coming from Western countries. The amount of self-employed is high among immigrants who come from countries with traditional small and medium sized enterprises (SME) sectors. Those countries for example Turkey 37 % of immigrated labour force are self-employed), Thailand (20 %), Iraq and Iran (16 %), (former) Yugoslavia, UK, Vietnam, China, Germany (11-15 %). The share of self-employed immigrants coming from African countries falls to 2 % in Finland (Nieminen 2006 in Habiyakare 2008). According to a study regarding ethnic entrepreneurship in Finland (Lith 2007), 26.7 % of the retail and whole sale sectors, 21.8 % of the real estate and services sectors,19 % of hotel and restaurant sector, 8 % of marketing, sales, financial consulting services and 7.5 % of construction sector were run by the immigrants. Among the foreign-born population in Finland, immigrants coming from Nordic countries, Western Europe, Baltic countries and Russia are mostly active in wholesale and retail sectors. Especially Russians intensify on foreign trade and transportation and Estonians intensify on construction in Finland. Immigrants coming from Africa, Turkey, Middle East and other Asian countries are mostly active in restaurant businesses. In terms of regions, immigrants are prominent in wholesale and retail sectors in Helsinki region while they are prominent in restaurant business in Turku and Oulu regions. Norway When we look at the history of migration to Norway, the great majority of immigrants left Norway during the first years after Second World War and only small amount of the immigrant population remained in the country. From 1950 to 1960, post-war refugees, former prisoners of the Nazi camps in Norway and citizens of other Nordic and OECD countries started to migrate to Norway. With the adoption of the policy which invites immigrant workers for short-term periods in the beginning of the 1970s, the group of immigrants from Western countries especially from neighbouring countries started coming to Norway as the first immigration flow. Depending on the high standard of living in Norway, the absolute majority of immigrant workers never left the country. The direct migration was reduced gradually by the adoption of the law restricting the migration of unqualified workers, but the indirect migration continued through family reunification, international education programs and employment of professionals. Family reunification formed the second immigration flow to Norway. During the period between 1970 and 1975, Turks, Moroccans and Pakistanis constituted the majority of non- Western immigrants in Norway. In the same period, limited migration from India and (former) Yugoslavia was allowed by the law adopted in 1975, but the migration of unqualified workers to Norway was stopped. On the other hand, the economic growth based on oil production in Norway has enhanced the demand for qualified workers since 1970 and still continues to fuel this process. Another migration flow based on humanitarian reasons was commenced for the admission of refugees in the 1950s and still continues in Norway. Norway, one of the first members of International Refugee Organization in 1940s, initiated the policy about the admission of sick, disabled and old aged refugees and their families. Since 1986, Norway has continued to accept refugees for each year. The number of refugees in Norway has exceeded as 35 % of all immigrants in the country. Iraqis, Somalis, Bosnia-Herzegovinians, Iranians and Vietnamese are the main groups among refugees in Norway. Depending on the recent economic growth in Norway, the substantial deficit in labour force has come out, thus the migration from new EU member states, particularly from Poland, to Norway has started. Until today, the statistical survey concerning the historical background of ethnic entrepreneurship in Norway has not been conducted just as in the case of other Nordic countries. N O R D I C 12 BUSINESSLIFE

13 ISSUE 2 - APRIL, MAY, JUNE

14 FILE With the increasing number of shops and restaurants of immigrants in Oslo in the 1980s, ethnic entrepreneurship has become visible in the public. In 1986 and 1987, there were 127 shops belong to non-western immigrants in Oslo and constituted as 44 % of small-sized shops selling daily consumer goods. During the period between 1989 and 1997, non-western immigrants in Norway had 660 shops as an owner or a manager; 300 of these were shops with professional characters, 200 of these were the shops selling daily consumer goods and 160 of these were restaurants. The first systematic survey concerning with the self-employment in Norway was conducted in In parallel with the increasing population of immigrants, albeit the number of self-employed immigrants rose, it is still lower than that of native Norwegians. When we take into consideration the labour force aged years in Norway, the share of selfemployed immigrants in the total employees was 7.4 %, whereas it was 7.2 % among native Norwegians. If we reassess these rates considering the labour force aged years, the share of self-employed Norwegians in the total employees was 6.7 %. On the other hand this rate reduces among immigrants as 5.8 %. The self-employed immigrants in Norway are composed of Nordic immigrants as 7.7 %, West Europeans immigrants as 7.2%, new EU member states of East European immigrants as 3.6 % is, other East European immigrants as 3.1 %, North American and Oceania immigrants, as 8.8 %, Asian immigrants as 6.6%, African immigrants as 3.6 %, Central and Latin American immigrants as 4.7 %. Not only in Oslo, but also almost in all Norwegian cities there are many shops run by immigrants. The table on the share of self employed aged years in Norway by economic activities and national background is given below. Sole proprietorship, by economic activity and national background Economic Sectors Native Norwegians % Immigrants % Total 79,0 21,10 Construction 64,7 35,30 Wholesale, Retail sale, automobile and motorcycle repairing 75,2 24,80 Transportation and storage 64,5 35,40 Accommodation and Food Service Activities 44,2 55,80 Administrative and Support Services 69,9 30,40 Other Services 76,9 23,20 Source: Statistics Norway, Sole Proprietorship by economic activity and national background, new established enterprises 2009 The share of self-employed immigrants in Accommodation and Food Service Activities was 55.8%, and it was higher than that of native Norwegians. N O R D I C 14 BUSINESSLIFE

15 Conclusion The share of self-employment among immigrants in Nordic countries has been increasing day by day. Thus, the share of self-employed immigrant in the total employees in Nordic countries has exceeded the share of self employed native Nordics. This situation only shows difference in Norway depending on the reassessment of the labour force between aged years and aged years. The share of selfemployed native Norwegians is higher than that of immigrants for the latter age group in Norway. Both cultural and socio-economic characteristics of immigrants and socio-political conditions such as high unemployment rates among the immigrants, social exclusion and discrimination, lack of qualifications in Nordic countries lead the immigrants to work as self-employed. Self-employed immigrants in Nordic countries; predominantly live in Norrebro, Vesterbro, Amagerbro and Oresund regions of Copenhagen in Denmark, Kista region of Stocholm and Rosengård, Fosie and Hyllieby regions of Malmo in Sweden, Helsinki, Uusima, Tampere, Vaasa and Oulu as well as Varissuo, Halinen, Kohmo regions of Turku in Finland and Oslo, Buskerud, Østfold and Vestfold in Norway. In this regard, they have brought in multicultural aspect and contributed to the economic growth of these cities and regions. Moreover, they have also brightened sort of abandoned regions and the local markets of these cities. At the same time they have created new ethnic markets by providing new goods and services. Ethnic entrepreneurs have created new employment opportunities for both immigrants and natives in their small and medium-sized enterprises. In that sense, ethnic entrepreneurship in Nordic countries has paved the way for immigrants to struggle with the social exclusion and discrimination in both business and social life. It has also transformed the image of immigrants who benefit only from unemployment allowances and social welfare assistances into tax payers and contributors to economy. Besides, ethnic entrepreneurship has provided opportunities for immigrants to eliminate the difficulties such as discrimination, lack of language and qualifications in labour market indirectly. The characteristics of labour force and the rate of ethnic entrepreneurship in Nordic countries according to average of 2007/2008 Countries % of Foreign Born in Total Population Participation Rate % Native Born Employment Rate Foreign Born Unemployment Rate Native Born Share of Self-Employed Foreign Born Native Born Foreign Born The share of self-employed natives in total employment Denmark Sweden , Finland Norway * 7.4* The share of self-employed foreign born in total employment Source: European Union Labour Force Survey, Statistics of Denmark, Sweden, Finland, Norway *: If it is reassessed according to labour force aged years, self-employed native Norwegians are 6.7%, whereas immigrants are 5.8%. ISSUE 2 - APRIL, MAY, JUNE

16 ARTICLE More Prosperous, Fully Integrated Europe with Turkey Minister for European Union Affairs and Chief Negotiator Egemen BAĞIŞ Turkish originated inhabitants are now seeing themselves as true citizens of the host nation and are striving to find collective solutions for Europe s economic recession as well as integration and equality problems Firstly, I would like to thank you for starting up this wonderful magazine to help promote awareness within the Nordic community of economic and political developments. I also hope that this medium will pave the way for enhancing the already thriving relations between Turkey and the Nordic countries for years to come. In taking this chance to salute all of the Turkish people, currently living in the Nordic states as well as the Nordic people themselves I hope that the strong ties will prove unfaltering in the face of ages and the dire problems that seem to accompany them. Turkey has long historic ties with the Nordic countries dating all the way back to the 17th Century with diplomatic and mercantile ties formed between the Ottoman Empire and Swedish Kingdom. We have also ties with the Danish going back 250 years, which started in the field of trade in 18th century. Also in 1758, Denmark appointed a representative to the Ottoman Empire marking the growing relationship between the two countries. We have strong economic and political ties with the Nordic nations. We are proud members of NATO and the OECD among other institutions as are the Nordic nations. We share a common goal in the accession of Turkey into the European Union. Turkey 16 N O R D I C BUSINESSLIFE

17 has always felt the support of Nordic countries in her struggle against the overly inflated compliance rules set out by the EU. Turkey has always had a friend in the people of the North and has repaid loyalty with likewise acknowledgement. The Turkish communities around the world stand as living proof of how the notion of being a citizen of a truly international world is now a recognisable reality. The new generation of European citizens who are of Turkish descent, which do not feel like immigrants and do not look kindly to being treated as such, are undertaking trade and investment opportunities between Turkey and their hosting countries. In order to achieve this, they are establishing trade associations. As we say in Turkey, all Turkish related citizens abroad are potential ambassadors for our country. The nature of the immigrants attitude towards the host nations that their grandparents arrived at over fifty years ago is a remarkable one. Turkish originated inhabitants are now seeing themselves as true citizens of the host nation and are striving to find collective solutions for Europe s economic recession as well as integration and equality problems. So far, the supra-national merger known as the European Union has borne fruit in some regards, in reforming law and social rights of the member states, but has failed to harness the true economic and political potential of the member states and potential member states. Turkey is now a globally initiated and forward thinking nation with improving relations with countries all around the world. The standing of Turkey in the international arena is a testament to the robust policies set down by our government over the time span of a decade. Turkey can prove a game changer for Europe if Brussels can manage to get its head out of the ground and star realising the truth. That for one Turkey has a huge potential with both its young and qualified population and its diaspora, especially in Western Europe. For the past few years, Turkish economy has become a rising star. Turkey has been Europe s fastest growing economy and 6th largest economy of Europe. Our 2023 aim is to become one of 10 largest economy in the world. Besides, Turkey is a vital gateway to the Caspian and Central Asian oil and gas supply systems. Some 70% of the energy resources are located in the South and the East of Turkey, while the largest energy consumer, Europe, is located in the West. Unless someone can come up with a new wireless technology of energy transfer, Turkey s cooperation is a must, for Europe to have access those energy resources. Turkey is also a big opportunity for Europe with its young and dynamic population. If EU wants to compete with world s giant economies, it should carefully weigh Turkey s great potential. Europe cannot deny the soft power Turkey can wield over the Muslim populace of the Middle East and Northern Africa. This coupled along with trade routes and entrances to some of the world s largest and most profitable markets make Turkey the go to choice for international trade and influence. We hope for a more prosperous and fully integrated Europe, and I believe the Nordic nations will prove some of Turkey s most loyal friends in the ongoing saga. We are strongly committed to our target of becoming an EU member and we are ready to support Europe get rid of its economic and financial troubles. We can only hope that common sense and mutual interests prevail over petty ideological obsessions. Egemen BAĞIŞ Minister for European Union Affairs and Chief Negotiator ISSUE 2 - APRIL, MAY, JUNE

18 ARTICLE Turks In Sweden: Bridge Between Two Partners Ambassador of the Republic of Turkey to Sweden Zergün KORUTÜRK Diversity does not only contribute to and enrich cultural and political life but can also enhances social and economic performance, creating an organic link between diversity, creativity and innovation. Today, we are citizens of a globalized world where borders and distances as well as time concept have almost disappeared with the uninterrupted developments in the sphere of technology and communication. As a result, our contemporary world is being shaped more than ever by tremendous flow of both capital and labour that brings to the forefront the need to review the existing social and economic structures both nationally and internationally. After decades of their arrival in Europe and so in Sweden as a muchneeded working force of the time, now the Turkish community in this continent, especially its second and third generations are visibly transformed not only for their respective societies but also taking the role as vital contributors. Looking at these values, it is worthwhile to have a brief glimpse at this community in Sweden. For around Turks living in Sweden, this country is their new homeland. They are no longer employees as was the case during the 60s and 70s, but are today academicians, politicians, lawyers, doctors, businessmen with their own firms, etc. While they are enriching their societies with their identities and culture, they are also an added value in many spheres in strengthening cultural diversity in Europe. In fact, cultural diversity is not a new phenomenon for the Continent as these lands have been marked by intra-regional and intra-continental migrations, the redrawing of borders and the impact of colonialism and multinational empires throughout history. In light of the rich historical experiences, societies based on the principles of political pluralism and tolerance in Europe have enabled all N O R D I C 18 BUSINESSLIFE

19 This magazine, Nordic Business Life NBL published by the European-Turkish Business Confederation (UNITEE) in partnership with, among others, the Swedish-Turkish Business Network (SWETURK) is a recent and successful example of the above mentioned role of the Turkish community to Europe of us to live with diversity without harming social cohesion. Diversity does not only contribute to and enrich cultural and political life but can also enhances social and economic performance, creating an organic link between diversity, creativity and innovation. On the other hand, focusing in today s global economy, it offers a wider network for economic and commercial relations of each and every state. This magazine, Nordic Business Life NBL published by the European- Turkish Business Confederation (UNITEE) in partnership with, among others, the Swedish-Turkish Business Network (SWETURK) is a recent and successful example of the above mentioned role of the Turkish community to Europe. It represents a new dynamism for Sweden and the other Nordic countries from a comparatively new group of European citizens of Turkish origin who are providing a wider economic spectrum through their special advantages like being able to be a part of a wider cultural and geographical world through their language, faith and history. Turkish community of more than in Sweden constitutes a good example in this sense. In the traditional but still descriptive way, they form one of the bridges between Sweden and Turkey. Some may question the importance of this classical definition, so let s shortly and only from an economic perspective look at the two ends of these bridges. Neighbouring and bridging the strategic geographies that are and have always been on top of the global agenda from various aspects, Turkey has shown remarkable economic performance with its stable growth over the last decade. The structural reforms, motivated by the financial crisis at the start of 2000s and strengthened by Turkey s EU accession process, provided a modern and strong platform for its economic, financial and commercial stability and development. After 2002 Turkish economy grew with an average annual GDP growth rate of 5.2%, actual GDP level tripled and boosted foreign trade and become one of the major recipients of FDI. Without mentioning its rising political, cultural and social relations and status not only in its region but also at a global scale, Turkey is now the 16th largest economy of the world and 6th in the EU. On the other hand, Sweden, as one of the leading countries of Europe and the world who defends and improves the universal values of democracy, respect for human rights and the rule of law, is also among the notable European economies, based on free trade with a strong public finance that governs one of the most effective social welfare systems in the world. The historic State Visit of H.E. Mr. Abdullah Gül, the President of the Republic Turkey to the Kingdom of Sweden on March 2013, has demonstrated once more the very high level and quality of our bilateral relations that has at present reached to a strategic partnership level. Thus, as the bridge between these two important partners, the Turkish community in Sweden has an important role in improving further the economic, social, cultural and political bonds between our countries. At this point, one should also underline the importance of sincere goodwill and interest that exists at the other side of the bridge. While welcoming all the constructive and result oriented partnership initiatives from Sweden in all spheres, we are also happy to have hosted last year more than Swedes as tourists in Turkey. In order to consolidate the momentum outlined above, I believe that the Turkish community in Sweden will continue to invest on education, to take part actively in the daily life of their country, to contribute to the cultural, academic and artistic accumulation of Sweden through organizations like UNITEE, SWETURK and many others. Zergün KORUTÜRK Ambassador of the Republic of Turkey to Sweden ISSUE 2 - APRIL, MAY, JUNE

20 ARTICLE Excellent Prospects for Expanding Turkish-Swedish Trade and Investments Ambassador of Sweden to Turkey Håkan ÅKESSON Sweden and Turkey signed a Memorandum of Understanding on Promoting Trade, Investments and Cooperation in the Field of Environmental Technology during the recent state visit. The Business Forum that was held between CEOs of Sweden and Turkey s most prominent companies during President Gül s visit to Sweden in March clearly demonstrated the potential to further increase our bilateral trade. The trade volume between our two countries amounted to 3.3 billion USD in Not bad, but there is room for improvement considering that both economies have weathered the economic crisis relatively well. The Swedish resource base corresponds well to the demands of a growing and modernizing Turkey. Sweden is ranked as the most innovative country in the EU by the European Commission for the third year in a row, and could complement the young and dynamic Turkish economy in its quest to become a truly high-tech investment market. Turkey is an economic giant in the making. Some analysts anticipate that Turkey will be Europe s biggest economy by To that one can add the fact that Turkey has been one of the fastest growing economies in the world in recent years; it is no wonder that the Turkish market has attracted a lot of interest from Swedish businesses recently. Already, 250 companies with a Swedish connection are present in Turkey. Some of our largest global firms such as H&M and IKEA source much of their garments and textiles from Turkey, and companies such as Autoliv have located substantial production and assembly plants in Turkey. All of this is a good start, but much more could be achieved. Not only is there a significant potential to increase our bilateral trade volume, but also to increase investments in both directions and establish more partnerships and joint ventures. There are a few areas where the potential for increased cooperation is particularly significant: Information and Communication Technology Sweden is ranked the number one country in the world in terms of ICT infrastructure. Systems enabling 40% of all mobile calls in the world are built by a Swedish Ericsson, which have been established in Turkey for over 100 years. Sweden attracts more venture capital relative to the size of its economy than any other country in Europe, thanks to tech start-ups such as Skype, or Spotify with 20 million users worldwide. This should be of interest to Turkish investors too. Facebook is soon to open Europe s largest data center in Luleå, and Huawei has recently established a research institute in Kista for wireless technologies. We benefit from a strong heritage in design and engineering, and we are a highly connected society (twice the Facebook penetration than Germany, for instance) that adopts new technologies early. The Turkish ICT market is growing and reached 34 billion USD in 2011, amounting to around 4% of GDP. The Turkish government has ambitious plans in the ICT area, as demonstrated by the comprehensive Fatih school 20 N O R D I C BUSINESSLIFE

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