This is a reality that is still unknown. The number of unemployed entrepreneurs has increased considerably this year, according to a new study carried out by the firm Altares and the association Garantie sociale du chef d’entreprise (GSC). In total, nearly 25,300 bosses lost their jobs between January and June 2023, which corresponds to an increase of 36.6% compared to the same period last year.
This year’s levels have caught up to those before the Covid pandemic. With a novelty: the leaders of large structures are now also concerned. “After a year 2022 which already alerted us to the resumption of business failures, this acceleration observed in the first months of 2023 should encourage us to be extremely vigilant”, underlines Anthony Streicher, president of GSC.
But how to explain this meteoric rise? The association refers to inflation, which has reduced household spending. Consequence: many drinking establishments, restaurants, or even hairdressers have paid the price. The increase in raw material costs and the repayment of state guaranteed loans (PGE) granted during the Covid-19 crisis are also cited. Finally, the rise in interest rates has weakened the construction sector, which has more difficulty financing real estate projects.
Trade and construction particularly affected
In detail: construction and trade contractors account for nearly half (47%) of job losses. The accommodation, catering and drinking establishments sector accounted for 14.3% of the bankruptcies that occurred during the first half of the year.
In terms of company size, the smallest are more affected. Three-quarters of entrepreneurs who lost their jobs were at the head of a VSE with fewer than three employees. But, unlike in previous years, the leaders of large corporations are no longer immune. They represent 0.5% of unemployed bosses, an increase of 99% compared to the same period last year.
Even more worrying: the median age of unemployed bosses is 45.9 years. “The question of professional rebound remains central for this population”, warns the GSC association.
As for young entrepreneurs, it is not better: those under 26 represent 2.6% of business leaders who lost their jobs in the first half of 2023, an increase of 40% compared to the same period l last year. These data open up “the question of support”, underlines GSC.