2,889 companies closed in July

As a result of the AKP government's economic policies, companies are closing down and small businesses are shutting their doors. While 2,889 companies closed in July, 51,055 small businesses were forced to shut down in the first 7 months of the year.

Don't leave your news choices to an algorithm - decide for yourself what you read. Add 12punto to your preferred sources!

High inflation, the cost of living, and the continuous depreciation of the Turkish Lira against foreign currencies have pushed markets into a deadlock.

While a large number of companies are closing, small businesses have also been forced to shut their doors. There has also been a significant increase in concordat filings.

According to data from the Union of Chambers and Commodity Exchanges of Turkey (TOBB), 2,889 companies closed in July, an increase of 42.9 percent compared to the previous month. While the number of closed companies increased by 39.8 percent compared to July 2023, the number of newly established companies grew by only 4.2 percent.

According to a report in Birgün, the number of closed companies in the January-July period of 2024 increased by 28.3 percent compared to the same period last year. Thus, while the number of companies closed up to July this year reached 14,828, this figure was 11,559 in the same period of 2023. While there was an increase in the number of closed companies, there was a decline in the number of newly established companies.

While 73,000 companies were established in the first seven months of 2023, this figure fell to 62,389 this year, a decrease of 14.5 percent. Of the companies and cooperatives that closed in July, 1,051 were in wholesale and retail trade and repair of motor vehicles and motorcycles, 421 in manufacturing, and 307 in the construction sector. Of the sole proprietorships that closed this month, 597 were in wholesale and retail trade and repair of motor vehicles and motorcycles, 273 in construction, and 157 in the manufacturing sector.

51,055 SMALL BUSINESSES SHUT DOWN

The poor state of the economy has also affected small businesses. According to data from the Confederation of Turkish Tradesmen and Craftsmen (TESK), 51,055 small businesses shut down in the January-July period. Many businesses struggling to pay their debts have begun to file for concordat. According to data from Konkordatotakip.com, 788 firms filed for concordat in the January-July period. The sectors leading in concordat requests were construction, textiles, and gas stations.

EXPLOSION IN BOUNCED CHECKS

On the other hand, while the number of bounced checks increased by 80 percent in the January-July period compared to the same period last year, their total value exploded with a 247 percent increase. In the January-July period, the total value of 146,000 checks belonging to 17,000 people that were presented to banks and found to be insufficient reached 90 billion TL. A total of 23,000 checks worth 12.7 billion TL belonging to 9,638 people, which were initially processed as bounced, were paid later.