Sixty Eight Percent of Turkish SMME Shut Down in January

Some 68 percent of Turkish SMME shut down as grave economic crises continue to hit the Turkish market.

According to Turkey Union of Chambers and Commodity Exchanges’ (TOBB) data, the number of SMMEs has decreased 7.75 percent last January, and 68.38 SMMEs of the total small businesses in the country shut down.

TOBB’s January reports show that the number of new companies increased 30.24 percent compared to the previous month and the number of cooperative also increased 4.71 percent compared to December last year.

The number of closed companies decreased by 5.95 percent, compared to the previous month, while the number of closed cooperatives increased by 20.44 percent.

TOBB reports further compare the number of last year’s same month, January. The number of established companies decreased by 13 percent compared to 2018 January whereas the number of cooperatives decreased by 7.29 percent. SMMEs number has decreased by 37.76 percent over the last 12 months.

While the number of closed companies decreased by 12.84 percent compared to the same month of the previous year and the number of closed cooperatives decreased by 19.9 percent since last January. However, the number of closed small enterprises increased by 6.56 percent in the same period.

The number of bankrupt business people in 2018 increased by 10 percent compared to the previous year and reached 106,167 and 516,137 business shut down in the last five years, Şehriban Kıraç from Cumhuriyet daily reported.

SMMEs’ Loan Tracking Increases

The loan tracking on SMMEs non-performing loans has increased 60 percent in the first 11 months of 2018. According to Banking Regulation and Supervision Agency (BDDK), the rate of SMME’s loan has increased from 25.2 billion Turkish Lira to 40.1 Billion Turkish Lira in between the last month of 2017 to the first 11 months in 2018.

The number of SMMEs using loan also sharply increased by 21 percent to 621.7 billion Turkish Lira in 11 months of 2018, compared to the end of 2017. Some 3 million 318 SMMEs were using special SMME loans in 2017 and the number increased to 4 million 48 thousand 786 in November 2018.

Turkish millionaires decrease by 26 000 in three months as the country’s economy continues to struggle

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from IPA NEWS https://ipa.news/2019/02/23/sixty-eight-percent-of-turkish-smme-shut-down-in-january/