Is the French economy in good shape? This is at first glance what the latest figures from the National Institute of Statistics and Economic Studies (Insee) on business creations in 2022 suggest. The number of new businesses in France in one year has reached a new record, with 1.072 million registrations, announced this Friday, January 20 the organization. This record was reached despite a drop in job creations in December. In 2021, 1.05 million companies had been identified, according to the new INSEE calculation method, which had initially reported just under 996,000 creations.
For Christel Tessier, teacher-researcher at Grenoble INP and specialist in entrepreneurship interviewed by L’Express, these figures are “good news for the French economy. Because they reflect a desire to innovate, allow competition at the international level and, above all, shake up large companies that are struggling to move on the current issues of energy transition in particular.” Another piece of data is encouraging, that of the creation of companies which have progressed even more strongly, with an increase of 4.8% to nearly 300,000 compared to 2021. “These structures have generally started to raise funds, they are sustainable and created jobs. These companies therefore have a positive impact on the economy in general (tech, patents, competitive positions, etc.), which is very promising.”
“Sustained entrepreneurship”
However, these figures must be qualified, because among the companies created in 2022, 61% were by self-employed people. The number of micro-enterprises set up by them increased by 2.8% to more than 656,000 last year. Consequence of a country in crisis with inflation at nearly 6% and a “aspiration for more freedom” according to Christel Tessier. But this increase in micro-enterprises remains worrying because it is very often a matter of “a suffered entrepreneurship”. It is also “a hypocritical way to lower the unemployment rate”, recognizes the expert. Because in the majority of cases, it is precarious people who start – seniors, young people without diplomas, immigrants, etc. – hoping to make ends meet. “There then appears a real gray area of employment – among truck drivers or freelance journalists in particular – with disguised subcontracting and employers’ promises that are not kept.”
Incomes among micro-entrepreneurs are telling. “On average, they earn 700 euros per month… How do you want to live with that?” laments Christel Tessier. Given their profiles, it is not always easy to get or keep another job at the same time. Certainly, the creation of a micro-enterprise can make it possible to develop skills and create networks “but this requires real support work from the State with the people most in need so that they can integrate then”, considers the teacher-researcher. But for now, the situation seems too comfortable for the state.