What is the state of entrepreneurship in France in 2022?

according to jotwinvestan organization that conducted a study based on INSEE figures, the entrepreneurship boom in France has been booming 30% She was seen creating businesses between 2020 and 2021, despite the COVID-19 crisis.

Thriving French entrepreneurship

During the COVID-19 crisis, not many specialists would have bet on such a trend, but the figures published by INSEE confirm this: entrepreneurship in France is constantly evolving.

• Business creation in 2020: 850 thousand
• Business creation in 2021: 995,000

Increase business creation by 30% In one year, this is in the midst of an economic crisis.

Thus, the privileged entrepreneurial status of the French is that of the self-entrepreneur: 6 The French will choose her among 10 people between April and June 2022.

Entrepreneurship in France by region

The observation is clear: Ile-de-France is the region with the most entrepreneurial development. This can be explained by the fact that:

• Ile-de-France is the economic center of France
• Entrepreneurs in Ile-de-France have higher levels of education: 57% have a higher education diploma compared to 46% in the rest of France.
• More CEOs embark on entrepreneurship: 43% compared to 31% in other French regions

On the other hand, business creation is progressing further in other areas: +17% against 9% in Ile-de-France.

Why are the French heading towards self-entrepreneurship?

Gotoinvest lists several reasons why the French have a taste for entrepreneurial adventure:

• Macron government initiatives Creating a business is simpler and more dynamic than ever
• The shock caused by the coronavirus crisis On the economic and cultural fronts, mentalities and needs have been profoundly modified

1. The impact of the Macron government’s policy on self-entrepreneurship

Business creation has been widely welcomed by the various governments established by the President of the Republic since he took office in 2017. Since it is considered a bulwark against unemployment, he has made it one of his political pillars.

Emmanuel Macron’s goal was and remains to make France one of the largest “emerging countries” in the world. Since the auto entrepreneur is one of the most important players (for example, Uber has partnered with more than 30,000 auto drivers in 2020), it is only natural that an effort to promote this branch is considered.

Concretely, this ambition translates into various measures:

• PACTE ACT May 22, 2019: Directs French savings to finance the growth and innovation of French companies
• Redesign and simplification for the social system of the self-employed
• Increase taxes and social benefits Self-project owners
• Tax reduction On Companies (IS)
• right to wrong It was enacted for tax and administrative returns

2. The impact of COVID-19 on self-employment

COVID-19 has had a surprising impact on business creation: it has stimulated it +17.4% Between 2020 and 2021. And in terms of self-employment, this number is even higher +30% during the same period.

This could be due to various reasons:

• The need for additional income : Some French people have found themselves having their salaries cut, or even eliminated, because of jobs that have not adapted to the restrictions. So some had to create their own jobs and find their own income.
• Desire to work : Many French people could no longer work and had only to set up a company as their only alternative

3. Did the French fall in love with freelancing?

According to INSEE, the French are becoming more and more skeptical about the wage earner and the world of work. Indeed, this way of life is increasingly seen as a series of restrictions. A series of interviews the institute conducted with a panel of entrepreneurs partly confirms this trend.

If the French have certainly not “fallen in love” with the status of self-entrepreneur, on the other hand it is the one that allows them to adopt the greatest flexibility and the least constraint to achieve their goals, it is therefore natural that they most often decide to obtain this status.

How to become a business owner? To become a self-employed entrepreneur, all you have to do is fill in an online form on the dedicated URSSAF portal and then get your Siret number.

Freelancing is easy to access and promotes independence, but is it really worth it?

Thus, the auto-entrepreneur niche is attractive, but also very limited:

• Access to some state aid is not allowed
• The turnover (CA) must not exceed a certain threshold in which case the company changes its legal structure and tax regime
• If the auto-entrepreneur wishes to check out a quarter of retirement or receive social assistance, he must have a minimum turnover: 7,800 euros per year to contribute two quarters of retirement in 2021
• The economic context has a strong influence on small businesses: only 10% of auto entrepreneurs have reached 60% of their previous sales after the second inventory.
• Salaries paid by self-entrepreneurs are usually very low: 75% of them receive no more than 330 euros per month.

The self-entrepreneur status is therefore interesting in many aspects: accessibility, flexibility, dynamism, and freedom. But it is also riddled with a number of negative points (relatively low income, subject to economic fluctuations, does not provide access to certain government aid) that could cause it to lose its favored position status for the French.