USAK SUGAR FACTORY AS A SUCCESS OF PRIVATE ENTREPRENEURSHIP

Abstract

Nuri Seker founded Usak Sugar Factory in 1926. He targeted to produce Turkish sugar from beet. Thus, he wanted to easily ensure this need of Turkish people. He also planned to provide a regular source of income to poor peasants. He established a company and began to collect capital for the factory. Czechoslovak Skoda firm provide technology to the factory. After inauguration, Usak Sugar Factory met water supply and agricultural pest problem. Nuri Seker also had to teach newly sugar beet cultivation to peasants. In contrary to all difficulties, factory started its operations and sugar production was steadily increased. But Nuri Seker faced with financial difficulties, because experience years in sugar production increased factory's debts. As a result of these debts, government decided to liquidate the factory's company. Nationalization was practiced on 6 August 1931. During the liquidation process, rights of public partners became main argument point. Later, government decided to pay face values of public partners' shares. Eventually, links of private entrepreneurs were totally severed from Usak Sugar Factory.