Turkey’s 2025 Business Shift: Companies Fall, Entrepreneurs Rise
Closed Businesses
Fresh figures from the Union of Chambers and Commodity Exchanges of Turkey reveal a shifting business landscape in 2025. According to TOBB’s October company registration statistics, formal company establishments slowed on an annual basis, while individual entrepreneurs expanded their presence across the market. The first ten months of the year witnessed a remarkable rise in sole proprietorship formations, contrasted by notable declines in newly founded companies and cooperatives.
The data highlights a structural transformation in Turkey’s business ecosystem. Rising costs, changing market preferences, and more flexible operating models appear to be pushing many toward smaller, individually owned commercial structures rather than larger corporate setups.
Company and Cooperative Establishments Decline Year Over Year
During the January to October period of 2025, company formations decreased by 1.3 percent compared with the same period of the previous year. This downward movement became more pronounced among cooperatives, where new registrations fell by a significant 32.3 percent.
In contrast, the number of newly registered sole proprietorships rose sharply, increasing by 13 percent. This suggests that individuals increasingly prefer low-cost entry, flexible structures, and simpler bureaucratic processes as they navigate economic uncertainties.
These figures indicate that entrepreneurial activity is not slowing. Instead, it is reshaping itself around more independent, small-scale business models rather than corporate structures that may require higher initial investment and greater operational obligations.
Rise in Closures Points to Market Turbulence
TOBB’s report also shows a significant uptick in business closures within the same period. Company shutdowns increased by 10.7 percent, while cooperative closures rose by 12.6 percent.
Interestingly, closures among sole proprietorships moved in the opposite direction. The number of individually owned businesses that ceased operations fell by 6.9 percent, reinforcing the idea that smaller companies are more adaptable and resilient during challenging economic conditions.
These contrasting patterns highlight a market in which smaller, agile firms are better positioned to weather volatility, while larger organizations face deeper structural pressures.
October Shows Mixed Momentum Across Business Types
When examining October 2025 specifically, the business formation landscape presents a different trend. Compared to September, company registrations increased by 7.6 percent. Sole proprietorship registrations rose by 8.6 percent and cooperative formations grew by 4.4 percent.
The month-on-month gains suggest that, despite yearly declines, interest in starting new ventures remains strong in the short term. This could reflect seasonal trends, temporary optimism, or improved market expectations as we enter the final quarter of the year.
However, when compared with the same month of the previous year, new company formations in October dropped by 2.8 percent. Cooperative establishments fell sharply, declining by 39.8 percent year over year. Sole proprietorships again stood out as the only category with growth, increasing by 2.2 percent.
This sustained growth in individual enterprises suggests a lasting structural shift rather than a temporary fluctuation.
Closures Surge in October, Highlighting Market Pressure
Business closures also accelerated in October. Compared to September, company shutdowns rose by 15.1 percent. Cooperative closures increased by 19.1 percent, and closures among individual commercial enterprises surged by 35.8 percent.
In October 2025, company closures rose by 10.2 percent and cooperative closures by 9.9 percent. Yet closures among sole proprietorships fell by 10.6 percent compared with October of the previous year. This further reinforces the trend of small, individually run businesses showing better endurance in a challenging environment.
A Market Moving Toward Individual Enterprise
Overall, TOBB’s 2025 data points to a transforming business climate. While formal companies and cooperatives experience declining establishment rates and rising closure numbers, individual entrepreneurship is gathering momentum. Lower entry barriers and adaptable structures appear to make sole proprietorships more appealing and more resilient.
If this trend continues, Turkey’s commercial ecosystem may shift toward a more entrepreneurial, small business-centered structure in the coming years, especially as individuals respond to economic uncertainty with flexible business models.