Turkey experiences moderate rise in new company formations last month
Date
6/30/2024 4:15:23 AM
(MENAFN) According to recent data released by the Union of Chambers and Commodity Exchanges of Türkiye (TOBB), the number of newly established companies in Türkiye saw a slight uptick of 0.3 percent year-on-year in May. A total of 10,072 new companies were registered during the month, reflecting a marginal increase in entrepreneurial activity.
Of these new establishments, 748 were foreign-partnered or foreign-funded companies, a decrease from the previous year's figure of 961. This decline suggests a cautious approach among international investors amid global economic uncertainties.
However, the data also revealed a significant rise in company closures, with 2,759 companies shutting down in May, marking a sharp 37.5 percent increase compared to the same period last year. This uptick in closures underscores the challenges faced by businesses in the current economic environment.
Looking at cumulative figures for the first five months of the year, the total number of companies founded in Türkiye showed a decline of 15.1 percent year-on-year, amounting to 46,070 new companies. Within this period, 3,333 were foreign-partnered or foreign-funded, indicating a notable decrease from 5,723 in the corresponding period last year.
Moreover, the data highlighted a concerning trend of business closures, with 9,917 companies ceasing operations from January to May, representing a significant 30.1 percent increase compared to the previous year. This increase in closures reflects ongoing economic challenges and the evolving business landscape in Türkiye. Despite these hurdles, the slight increase in new company formations signals resilience and ongoing entrepreneurial activity within the country.
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