Entrepreneurship did relatively well in France in 2019.
According to data collected by INSEE over the last twelve months, there has been a remarkable rise in business start-ups in 2019. Compared to 2018, the increase amounts to more than 17.9%.
More precisely, this represents 120,000 new business start-ups compared with last year.
With the doubling of sales thresholds in 2019, three-quarters of new businesses will be micro-enterprises.
In detail, all types of company have progressed:
- the number of new micro-entrepreneurs rose by 25.3%.
- 15.7% for sole proprietorships
- company registrations(EURL, SASU, SAS, SARL, etc.) rose by 8.1%.
Most business sectors are also affected, with a particularly sharp rise in industry, real estate and business consulting. business consulting and personal services.
The development of the uberization of the economy and voluntarism are the two main factors behind this boom in business start-ups in 2019.
Statistics from the CNGTC (the Conseil National des Greffiers des Tribunaux de Commerce) note an increase of over 48% compared to 2018 in the home delivery sector associated with major FoodTech companies. Deliveroo and Uber Eats, for example.
The dynamic can also be explained by measures taken by the French government during the year. The state has voluntarily encouraged the creation of micro-businesses by revising upwards the maximum annual sales thresholds. The adoption of the Pacte law has also simplified administrative procedures for entrepreneurs.
Finally, there's a third psychological factor to consider, linked to changing attitudes. The idea of entrepreneurship is appearing more and more often in the minds of French people, particularly young working people.
The combination of all these factors has stimulated business start-ups in 2019, and this will continue to be the case in 2020.
Despite these optimistic figures, France still has a long way to go.
Although there has been a significant increase in business start-ups in France in recent years, France is lagging behind its European neighbors, such as Poland, Spain and the UK. There are two possible reasons for this: the desire to become an entrepreneur takes longer to develop, and there is a lack of training to help people set up their own business.
On the other hand, the lifespan of micro-businesses is not as long as one might imagine. Only a third survive after three years from inception.
Most disappear, although some expand and evolve into companies. An INSEE report indicates that 46% of entrepreneurs decide to launch their business with the aim of obtaining additional income. This explains why the average income of micro-entrepreneurs in 2019 does not even reach the poverty line.
Our best advice for setting up your business and getting off to a good start is to enlist the help of a chartered accountant. certified accountant.
Written by our expert La Rédaction
February 6, 2020
