Entrepreneurship in France: over one million new businesses in 2022

Statistical studies carried out by the French agency of statistics INSEE are the official benchmark in this field and conducted “in complete professional independence”. The INSEE was created in 1946 to collect, analyse and disseminate statistical information on the French economy and society at country scale. This study on business creations in France sheds new light on an increasingly important trend.

The vitality of the entrepreneurial spirit in France

In this latest study on business creation (the previous one dates back to 2018), INSEE is also a proof of the vitality of entrepreneurship in France. In 2022, just over one million businesses were created in France. Two-thirds of these new businesses were set up under the “micro-entrepreneur” mechanism, a one-person company mechanism, while one in four was a company and one in ten was a sole proprietorship outside the micro-entrepreneur scheme. The most popular sectors are specialised, scientific and technical activities (18%) and commerce (15%). The existence of the micro-entrepreneur mechanism is a “key factor in entrepreneurs’ decision to set up”: 65% of them would not have set up their business in 2022 if this scheme did not exist (57% in 2018). Two-thirds of micro-entrepreneurs cite the simplicity of administrative procedures as an advantage.

The study also analyses the profile of the businesses created: 52% of new businesses were created by people who already had a job before the creation of their business, and in particular employees in the private sector (29%), but also self-employed people (12%). Conversely, 25% of business creators were unemployed, with 16% unemployed for less than a year.

The study also explores the state of student business creators: two-thirds of student entrepreneurs (12%) were still studying at business creation. Over a third of entrepreneurs (37%) had another paid activity in addition to their new business. This situation is more common among micro-entrepreneurs (41%). For 47%, this is a complementary activity, in addition to another job or a retirement pension.

Entrepreneurial status varies according to gender, age and level of education

The profile of business creators varies according to gender, age and level of education. In 2022, according to INSEE, “women stand for 40% of business creations”. The sectors in which women are most present for business creation are services (75%) and human health and social work (73%). Conversely, women are largely under-represented in construction (4%) and transport and storage (11%). In 2022, as in 2018, six out of ten new entrepreneurs were under 40. Micro-entrepreneurs are significantly younger than other business creators: 38% of micro-entrepreneurs are under 30. The sectors with the youngest entrepreneurs are transport and storage (79% of creators are under 40), information and communication (74%) and education (71%).

In terms of degrees, the INSEE notes that in 2022, 39% of business creators have a degree corresponding to 3 years of studies. Those with most advanced degrees are more numerous among company creators and among those setting up sole proprietorships, excluding micro-entrepreneurs. They are very much in evidence in the scientific and technical, information and communication, but also in financial and insurance sectors. Business founders with no qualifications, on the other hand, are “over-represented in transport and storage”: 18% have no degree at all.

Low financial investment

Starting a business in France does not require significant financial investment. INSEE points out that more than half of all projects start with no investment or less than €1,000! In 2022, 37.5% of business creators had not invested any money at all to start their business, 20% had invested less than €1,000 and 12% more than €16,000.

Company creation projects, on the other hand, required more financial resources: 39% were launched with a budget of more than 16,000 euros. Conversely, as INSEE points out, “48% of sole proprietorships were set up with no financial resources at all”. Two-thirds of entrepreneurs did not receive any financial assistance. When they do, notes INSEE, “it is most often through the use of a mechanism called ‘assistance for setting up or taking over a business’ (Acre in French)”. However, 46% of entrepreneurs received support from their personal circle, 16% from a business start-up organisation and 14% from their professional circle, while 35% received no external support at all.

Companies sensitive to sustainable development

Finally, the INSEE study shows that two thirds of business founders say they are sensitive to the environmental impact of their business. Half of them even declare that it is a major concern or the very reason for their business creation plans. This “environmental awareness”, notes INSEE, is “the strongest in the industry, construction and accommodation-restoration sectors”, where almost 80% of entrepreneurs are aware of the environmental impact of their business.

In 2022, entrepreneurs include 41% of founders who have committed their company to “a policy of economical and sustainable management of raw materials, water and supplies”. As an example, companies generating waste include 95% companies that sort it and 75% that make sure that it is reused, “through recycling resulting from selective sorting”. Final point of the study, eight out of ten entrepreneurs say they “give priority to local sourcing”, and of those who travel as part of their business, more than a third use “soft or shared modes of transport”.

Explore more:

- The INSEE study