Signs of Fatigue in Turkey’s Small Business Boom
Closed Businesses
After months of consistent growth, new data from the Turkish Confederation of Tradesmen and Craftsmen (TESK) shows that September 2025 marked the first slowdown in Turkey’s small business expansion. The number of newly opened and closed enterprises reveals both resilience and emerging caution across the market.
According to TESK’s September report, the number of closed tradesmen businesses fell 12.87% year-on-year, reaching 9,000 closures. Meanwhile, the number of newly opened workplaces also slipped slightly — down 1.29% from August to 26,378 — signaling the first monthly decline of the year and raising concerns about slowing domestic demand.
Strong Growth Continues Over the Nine-Month Period
Despite the September dip, the January–September 2025 period paints a far more optimistic picture. New business registrations surged 18.9%, reaching 235,769, while business closures remained almost unchanged, increasing by just 0.71% to 83,302.
This indicates that Turkey’s entrepreneurial energy remains strong, even amid higher costs and tighter monetary conditions. The TESK data suggests that tradesmen and small business owners continue to see long-term opportunity, particularly in service and retail sectors.
Small Businesses: The Backbone of Turkey’s Economy
Small businesses form the foundation of Turkey’s commercial structure. TESK emphasized that despite short-term fluctuations, the sector still demonstrates strong structural resilience. As of September 30, 2025, Turkey recorded 2.55 million tradesmen-operated businesses and 2.29 million active tradesmen, reinforcing their vital role in local employment and economic stability.
Regional Insights: Istanbul Dominates, Tunceli Remains Smallest Market
The report highlights significant regional disparities. Istanbul leads the nation with 283,445 registered tradesmen, maintaining its position as Turkey’s entrepreneurial hub. In contrast, Tunceli has just 2,650 tradesmen, underscoring the uneven distribution of business activity across the country.
These figures reveal that metropolitan centers continue to drive economic growth, while smaller provinces face challenges in sustaining local commerce.
Experts Warn of a Cooling Trend Amid Tight Monetary Conditions
Economists say the mild September contraction doesn’t signal a crisis but acts as a warning of economic deceleration. Factors such as high interest rates, reduced access to loans, and fluctuating consumer confidence are starting to weigh on small enterprises.
“Small businesses are feeling the pinch of tighter monetary policy and weaker purchasing power,” analysts note, adding that TESK’s latest figures will serve as a key indicator for policymakers monitoring the effectiveness of economic stabilization efforts.
Outlook: Sustaining Growth Amid Economic Headwinds
While Turkey’s small business landscape continues to expand, maintaining momentum will require strategic policy support and stable financial conditions. Analysts argue that government-backed loan programs, inflation control, and measures to boost domestic demand will be crucial in keeping tradesmen afloat.
The TESK report ultimately underscores both resilience and vulnerability within the Turkish economy — a sector that continues to grow, but one now navigating the complexities of a cooling market.
