A new record for 2019 French firm incorporations
Confirming last year’s trend, 2019 French firm incorporations are on the rise. The large crowds at the 2020 Edition of the French Entrepreneurs’ Fair, which took place on February 5 and 6, bear witness to this. According to INSEE, a new record of business creations was set in 2019, with 815,300 incorporations. These have increased by 18% compared to the previous year which already served as a record, as we indicated in our previous article on the subject.
The rise of the micro-entrepreneurs status
It is interesting to note that this phenomenon affects all types of businesses. It should be noted in particular that the registrations of micro-entrepreneurs increased by 25%. Those of sole proprietorships and companies increased by 16% and 9% respectively.
Nevertheless, it is necessary to moderate this enthusiasm towards the micro-entrepreneur status. Indeed, behind this keen interest for this status, lie sometimes less glamorous realities. The significant difficulties encountered to make both ends meet may be the daily burden of some micro-entrepreneurs. Neither employees, nor entirely entrepreneurs, micro-entrepreneurs are located in a gray area which can plunge them into tricky situations. The growing uberization of the economy transforms part of the French population into poor workers. These do not benefit from the same social security coverage as those of employees.
The typology of 2019 French firm incorporations
With regard to the incorporation of companies, it should be noted that almost two thirds of them are simplified stock companies (SAS in French). Their share has grown steadily in recent years. Conversely, the share of limited liability companies (SARL in French) decreases year after year.
By sector of activity, specialized, scientific and technical activities contributed the most to business incorporations in 2019. As in 2018, the average age of creators of sole proprietorships is 36 years old. In terms of gender distribution, 40% of these creators are women.