Over 49,000 Small Businesses Shut Down in Türkiye Amid Economic Crisis

The first five months of 2025 have laid bare the severity of Türkiye’s ongoing economic turmoil, with 2,235 companies filing for concordat (bankruptcy protection) and more than 49,000 small businesses shutting their doors. That translates to an average of 325 shop closures per day, signaling deep structural distress in both the industrial and retail sectors.

Concordat Filings Hit Record High

According to data shared by BirGün, concordat applications have surged to levels not seen in recent years. While 1,914 companies filed in 2021, that number fell to 1,587 in 2022 and 1,516 in 2023. However, in just the first five months of 2025, filings have already reached 2,235, with forecasts pointing to an even steeper rise in the months ahead.

Small Businesses: The Silent Victims of the Crisis

The sharpest impact is being felt by Türkiye’s small tradesmen and local retailers. A total of 49,097 businesses closed from January through May, unable to cope with soaring costs, high taxes, rent hikes, and energy bills.

“That’s 325 businesses closing every day,” analysts note, raising alarms about widening social and economic fallout from the crisis.

Tarsus Chamber of Commerce: Textile Sector in Collapse

Mustafa Teke, President of the Tarsus Chamber of Commerce and an agricultural engineer, provided a grim assessment, particularly for the textile sector. Many textile firms, he said, have sold their machines to foreign buyers—especially in Egypt—at just a third of their value, driven by unaffordable input costs and collapsing profitability.

“Türkiye’s cotton production is nearing a standstill,” Teke warned, noting that firms are now fully dependent on imported raw materials.

“High Interest Rates Destroy Investment Appetite”

With interest rates hovering around 50%, Teke stated that industrial investment has lost all appeal.

“Why produce when keeping money in the bank is more profitable?” he asked. “Production is no longer viable, and bankruptcy has become inevitable.”

Retail Pressure: Chain Markets Outcompeting Small Traders

Teke also pointed to the domination of large supermarket chains as a key reason for small business failures.

“National chains open stores on every corner and benefit from massive purchasing power,” he said. “This unbalanced competition is pushing local grocers, butchers, and green grocers out of the market.”

Teke added that farmers are now leaving crops unharvested due to pricing pressures, while large retailers continue to profit from the imbalance.