Journal of Business & Economic Policy

Turkish Firms and the Covid-19 Outbreak: Preliminary Evidence for General Business Outlook and Responses
Esra Bal, PhD

Abstract
The global Covid-19 crisis hit public life and the economy hard in the first half of 2020. This study examines the impact of Covid-19 on business by considering survey data from 182 Turkish firms operating in the manufacturing sector. The data analysis revealed several key findings. First, Covid-19 has negatively influenced business turnover and has increased uncertainty, with competitiveness expected to remain moderately high. Second, firms have responded to the Covid-19 crisis flexibly at the organizational and operational levels. Even though many firms have applied for state support schemes, there has been considerable criticism of the scope and amount of support on offer. Firms anticipate that the shutdown will last up to 24 months, although many may face severe restrictions as the crisis continues. In addition, the results indicated that the impacts of Covid-19 crisis differ among sectors and firm sizes. Discussion centres on the implications of these findings for businesses, both within Turkey and beyond.

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