Entrepreneurial Surge Defies Tightening: 66,000 New Companies Established in 7 Months

New data highlighting the dynamism and entrepreneurial appetite of the Turkish economy reveals that the real sector maintains its growth motivation despite ongoing macroeconomic tightening measures and high borrowing costs. The statistics announced as we leave the first half of the year behind indicate that the vitality at the grass-roots level of economic activity persists.

Entrepreneurial Resilience Under Tight Monetary Policy

Despite the tight monetary policy stance of the Central Bank of the Republic of Turkey (CBRT) and the financing difficulties created by the 50% policy rate, entrepreneurs continue to create new playing fields. The sectoral distribution of companies established in the first 7 months of the year proves that concentration in the service and trade sectors continues.

■The total number of newly established companies across Turkey reached 66,602 in the first 7 months of the year.

■Despite high capital costs, newly established companies serve as an important buffer mechanism for the labor market.

■When the capital structure of newly established companies is analyzed, it is observed that the share of foreign-partnered affiliates remains resilient despite global liquidity conditions.

BIST Indices and Real Sector Correlation

This wave of company formations in the real sector translates into a new initial public offering (IPO) pool for Borsa Istanbul in the medium to long term. As companies accelerate their institutionalization steps and integration with capital markets, this micro-level growth will become one of the most fundamental catalysts supporting the deepening of the stock market on a macro scale.

While the recent consolidation and volume contraction we observe in the BIST 100 index seem to contrast with this micro-level vitality in the real sector, it remains promising for the medium-term outlook. Technically, while we closely monitor the 9,200 and 9,000 support zones on the index, we anticipate that this steady increase in new company formations will provide fresh blood to the stock market in the long run through new IPOs and liquidity channels. For price action currently trading below the Ichimoku cloud to break upwards, a macro-rebalancing led by the real sector must be completed and fund flows must accelerate.