Reviewing the foundation years and federation years of the enterprises (Table
1), it is comprehended that the recently established facilities became members of the federation more quickly, which might indicate that the participation of the facilities operating over a period of 1-10 years is high. The period of membership to the federation of enterprises operating for 10 years or more is less compared to their period of activity, which might indicate that some of the long-term operating facilities joined the federation later. As enterprises that are members of the federation have sports club status, they have sponsorship agreements, race organizations and fundraising rights
12. These rights may lead enterprises to have a longer-lasting structure (13).
Analyzing the employment capacities of equestrian clubs per horse (Tables 2 and 3) (total number of horses/ Total Number of Employees = 798/259/798 = 3.08), it was noted that 3.08 horses directly employed 1 person. In accordance with the research carried out in 2017, it was determined that 1 horse created employment for 3 people with its indirect and multiplier effects, and 11 people made a living4. Examining the findings of this research, which focuses on the equestrian clubs and facilities affiliated to TBF, it is comprehended that the relationship between horse and employment in TJK is the opposite. The fundamental reason for the alteration here might be due to the differences in the fields of activity, enterprise models and economic dynamics of equestrian clubs and facilities affiliated with TJK. Hence, these fundamental differences in the economic model and employment requirements of two different types of facilities may have led to a contrasting relationship.
Analyzing the data on feed supply, it is seen that the majority of equestrian facilities prefer to purchase ready-made feed from outside, which is a practical and time-efficient method in feed supply. According to a study based in England and Germany, the feed supply channels of the animals vary based on the type of feed desired, the labor force of the horses and the regions where the enterprises are located14. Nonetheless, a minority that also produce their own feed choose this path in order to respond to more specialized needs or to keep costs under control. This diversity indicates that facilities have different requirements.
Feed costs and bedding costs are among the most substantial expense items of equestrian clubs and the share of our study in total expenses was noted to be 36.43%. In a similar study performed in the northwest of Poland, the share of feed and bedding costs in total expenses was noted to be 33.8%. The values found are similar to the values reported by15. Moreover, in a study carried out in southwestern Poland, it was reported that the ratio of litter and feed cost was 50%16. Assessing this proportional difference, the increase in costs in recent years in Türkiye and the increase in expenses such as building-equipment amortization and electricity water due to the effects of the inflationary period can be demonstrated as the reason for this conclusion. In a study performed in Türkiye in 2019, the litter cost item in horse breeding enterprises was established as 14.55%. Similar base data can also be considered as a significant finding in terms of indicating consistency and standardization in the overall cost structure of the sector17.
Reviewing the expense items of the facilities (table 4), it is important to take into consideration the economic conditions of the various regions, the size and capacities of the facilities, as well as the local market conditions. In general, the fact that expenses vary so much demonstrates that facilities diversify their operational efficiency and cost management strategies18. This type of economic analysis may suggest what areas facilities should focus on for more efficient cost management.
In a similar study performed in northwest Poland, the distribution of income from restaurants and social facilities was reported to be 28%15. In this research, this rate was calculated to be 11.76%. Evaluating the causes for the main differences between the two studies, it is believed that the lack of restaurant service, socioeconomic conditions and differences in the variety of services are efficient in some of the enterprises providing data to our study.
The distribution of income activities in enterprises reveals that the fundamental source of income of many facilities is accommodation and horse care services (Table 5). It may also suggest that social facilities and restaurants are being utilized more or made more attractive in areas with large cities. The horse sales income rate is higher in the provinces in Marmara region, demonstrating that the horse trade is more active in this region. Equestrian training is understood to procure a sustainable and regular source of revenue for facilities. Information involving this type of income distribution might provide facility owners and investors with valuable insights to better guide and optimize their enterprise. Besides, in a study carried out in Germany, the contribution of sponsorship agreements of federated equestrian clubs to revenues was assessed. Consequently, analyzing the income items, it was reported that sponsorship revenues contributed 25% to 55%19.
Examining the profit/loss data of equestrian clubs (Table 6), the performance of equestrian clubs varies greatly based on geographical location, management skills and local economic conditions. Profitability varies depending on factors such as effective cost management and strategic positioning, high competition and low demand in some regions may have caused losses as well. In case we made a general assessment according to the regions, the Marmara, Aegean and Central Anatolia regions were generally profitable, whereas the Southeastern Anatolia region encountered losses. Enterprises in the Mediterranean region faced low profitability. Additionally, box/horse capacity utilization rates (Table 2) may be escalated and profitability rates may be escalated20.
Based on the profitability data gathered from the study results, it was established that the average profitability figures of enterprises that have restaurants and social facilities, that is to say, diversify their income sources, are higher. This highlights that to taketaking risks is required and diversifying income paths instead of generating income from traditional ways are required. In a study carried out in Poland, 360 annual reports of sports facilities were reviewed. In conclusion, similar to our research, it is stated that many clubs try to earn income through ‘traditional’ ways and avoid risk instead of taking risks when it comes to income diversification21.
It is observed that approximately half of the equestrian clubs involved in the research have been operating for less than five years, whereas the other half have a longer history. Evaluating the outcomes of the operating periods of equestrian facilities, it is revealed that equestrian, which has been an essential sector since the past, has found a place as an investment area. The establishment of new enterprises demonstrates that the equestrian sector is still worth investing in today. Meanwhile, it is understood that the recently established clubs are more willing to receive the title of federation during the institutionalization process. Thereby, equestrian clubs aim to ensure the sustainability of the enterprise by transferring to a more qualified level of institutionalization.
It is revealed that the facilities involved in the research made an average profit of ₺2.854.363,28 in 2023 indicating that the sector is worth investing in. Along with these data, it is an indication that the sector has a commercial potential where horse owners or managers do not have customer attraction problems in areas i.e. horse hostel, horse riding training, resturant-social facilities.
Furthermore, analyzing the income distribution and profitability outcomes of the enterprises, it is seen that the profitability levels of the enterprises that have restaurants and social areas are higher. In addition to being a member of the TBF, this situation presents that social facility revenues have a high impact on the economic sustainability of enterprises.
In the light of all these discourses and outcomes, this research is a valuable indicator for people and institutions that will conduct scientific studies and invest in the field of equestrian, which is a sub-branch of the horse riding sector that is developing day after day. These findings emphasize the significance and potential of investments and scientific research in the sector.
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