The article explores how import competition affects entrepreneurship in the textile and clothing industry in Turkey. By studying data from 1996-2006, it was found that the entry of new firms in the industry is actually positively correlated with imports from China. This means that competition from Chinese products did not hinder entrepreneurship in Turkey, but instead encouraged firms to focus on higher-quality markets. This shift towards high-quality products suggests that import competition can actually drive innovation and success in the industry.