NEWS Accounting        19/06/2020

Number of companies opening in Turkey drops 48.5% in May 2020

The Union of Chambers and Commodity Exchanges of Turkey (TOBB) has declared in a press release on June 19th the statistics relating to establishment and closure of companies in Turkey in May 2020.

 

The number of companies newly established in May 2020 was 3,438, which is a fall of 48.5% on the figure of 6,670 recorded in the same month of the previous year, but an increase of 22.2% on that of the previous month of April. Cooperatives decreased 68% to 41, and sole proprietorships decreased by 12.6% to 1,566 compared with the same month of the previous year.

 

In the first five months of 2020, the number of newly established companies decreased by 3.5% to 34,159 compared with the same period of the previous year.

 

With regards the year 2019, the number of companies newly established decreased 1.4% to 84,102, cooperatives increased 8.5% to 1,161, and sole proprietorships decreased 30.3% to 24,459, compared to the previous year. 

 

The number of companies closing in May 2020 was 513, which is 41.6% less than the figure of 878 recorded in the same month of the previous year, and 23.3% less than the figure for the previous month of April. Cooperatives closing fell 94.1% to 4, but sole proprietorships closing increased by 14.2% to 1,360 compared with the same month of the previous year.

 

In the first five months of 2020, the number of companies closing decreased by 3.4% to 4,634 compared with the same period of the previous year, and the number of sole proprietorships closing increased by 13.1% to 10,510.

 

With regards the year 2019, the number of companies closing increased by 5% to 13,197, cooperatives closing fell by 17.1% to 853, and sole proprietorships closing increased by 0.4% to 19,044, compared to the previous year.

 

The coronavirus pandemic has undoubtedly had a significant negative effect on company openings and closings in recent months. This did not necessarily reflect a fall in economic activity as such because the social distancing requirements may well have made it troublesome for performing the bureaucratic and organisational requirements of opening and closing businesses. Many businessmen may well have postponed therefore such activities until after the coronavirus pandemic has passed, and of course many may well have decided to reappraise their decisions to open or close businesses until they could access the situation in the new post virus economic environment.



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