January 26, 2022

Always more business creations

Clearly, in France, business creations are playing on the crisis! After an already exceptional year 2020, France records in 2021, a new record for registration in the trade and companies register. It should be noted, however, that the micro-enterprise regime is very much in the majority, representing, in November 2021 alone, 64.5% of new business creations.

Always more business creations / iStock-Morsa Images

Insee figures

The National Institute of Statistics and Economic Studies (INSEE) publishes a monthly bulletin on business start-ups in France. If the document published last December, pointed to a sharp decline in November, with an overall volume of creations that fell by more than 3.5% compared to October, the number of business creations recorded in the year 2021 does not remains no less historic…. 915,454 business creations were indeed recorded over the first eleven months of 2021, i.e. more than over the whole of 2020, which with its 848,000 business creations, already represented a record. The last statistical note from ISEE having been published on December 15, the Institute engaged in some prospecting to draw a balance sheet for 2021. This foreshadowed an increase in business creations reaching 19% between l year 2020 and the year 2021, with a number of creations approaching one million in 2021.

The creation of fast-growing companies “despite” or “thanks to” the crisis…?

It might be tempting to celebrate this strong dynamic in the business creation sector, which comes as the economy has been hit hard by the health crisis. However, some see it more as a direct consequence, denouncing a phenomenon of “uberization” of the economy. Indeed, it is clear that the impressive increase in new registrations is driven by the transport and warehousing sectors which experienced an increase of + 31.5%, as well as that of household services, which, for its part, grew by 26.6% in 2021. However, these ecosystems – in particular the activity of delivery platforms or home help which exploded with the health crisis – include a large proportion of service providers working with the status of auto-entrepreneurs… A legal form which itself made an impressive leap in 2021, with an increase of 18.3%, all sectors of activity combined. The INSEE also specified that if the creations of traditional individual companies were also experiencing growth, this is (only) of + 3.4%. Finally, the Institute tempers a little the euphoria linked to the overall increase in business creations by evoking, just like for the growth of the GDP (estimated at more than 6.5%), a “catching-up effect” … The level of creations was indeed particularly low during the first confinement in 2020. It is also to be hoped that the creations of auto-businesses in the sectors of meal delivery or personal assistance strongly boosted by the crisis, it will survive and will be perpetuated when it will finally have marked time.