This chapter examines the key historical factors shaping the adoption and spread of business organizational forms in Turkey and their implications for economic development and social welfare. Ottoman economic institutions, such waqfs and guilds, enabled businesses to access finance, reduce risks associated with trade, and provide tools supporting contract enforcement. However, they also stifled competition and efficiency for the sake of stability and equity. During the late Ottoman era, nationalist economic policies, along with the availability of new organizational forms such as limited liability, enabled these traditional institutions to evolve and pave the way for the primitive accumulation required for economic modernization. Yet political restrictions persisted, creating barriers to access to these new forms, which not only undermined the potential for sustained growth but also weakened the co-existence of diverse ethnic and religious communities. While reformers emphasized “national interests” and legitimized Muslims’ pursuit of wealth, there was also little effort for building an indigenous discourse on business ethics. As a result, neither the indigenous nor the borrowed institutions were able to align business interests with long-term welfare concerns.