The Role Of Participation Finance In The Entrepreneurship Ecosystem

The entrepreneurship ecosystem, first coined in 2006 as a concept, started to find more place on our agenda as digitalization became widespread in almost every sector and became a gigantic economy.

When the word "entrepreneurship ecosystem" is mentioned, technology-based companies whose numbers are increasing day by day and whose sphere of influence in the economy is expanding, and the universe of actors (or in other words, stakeholders) in the system to support the productivity and sustainability of these companies and the factors surrounding this universe (regulations, supports, entrepreneurship culture etc.) come to mind. Undoubtedly, one of the main stakeholders playing a role in the system is financial institutions. Because, like all other companies, these technology-based enterprises need financial resources at every stage to continue their activities from the establishment stage, gain ground in the market and grow.

CROWDFUNDING PLATFORMS WILL BECOME WIDESPREAD

Participation banks continue to stand by them with their incubation and R&D centres to enable technology-oriented entrepreneurs with scalable business ideas to transform their projects into commercial activities in a sustainable model and quickly. By developing innovative applications, our banks provide all the support with the entrepreneur's needs and reveal their potential. In the upcoming period, we will see that crowdfunding platforms created to collect the financial resources needed by venture companies with business ideas based on technological products and services with high added value and competitiveness will also become widespread.

Crowdfunding platforms, which also coincide with the principles and standards of interest-free banking, have a very high potential in TÜRKİYE. In addition, cooperation with fintechs, with which we are in close contact with the development of our new generation banking applications, is likely to increase in the coming period. Thanks to the collaborations made, participation banking has gradually become an important actor in the ecosystem, in addition to deposit banking, to increase the opportunities for our entrepreneurs to access the finance they need and improve the financial product options. However, I must say that we still have a long way to go in this field as an industry. The steps we will take in this direction will undoubtedly contribute to our goal of increasing the share of participation finance in the total financial system. I believe that we will successfully fulfil our responsibility as an industry to support entrepreneurship and strengthen our influence in the ecosystem.

İsmail Vural

Acting Secretary General of TKBB