The phenomenon of self-entrepreneurs, the future of the labour market?

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Updated on November 20, 2020 Self-entrepreneurs fear for their work in the face of the epidemic. In view of the spread of COVID-19, the state is again in place to contain from 30 October 2020 until 1 December 2020, at a minimum.

During his speech, the President of the Republic, Emmanuel MACRON, announced the measures to be put in place. In particular, he mentioned the risk of total saturation of hospital services, but also the preservation of the economy. In the preservation of the economy he mainly mentioned SMALL and medium-sized enterprises . . . Thus the self-employed do not really feel concerned and protected not the measures to come. For its part, the Federation of Self-Entrepreneurs (FNAE) fears that small independents will suffer even more in their work. They are forbidden to practice, right to the solidarity fund and right to a bank loan.

Self-employed entrepreneurs have gained ground in the labour market since their inception in 2009. Between 2017 and 2018, the creation of self-employed companies broke a new record. According to INSEE, in 2018, 691,000 companies were established in France (1). This represents an increase of 17%, which has been very substantial since the creation of the statute in 2009. More and more people are embarking on the entrepreneurial adventure. One of the reasons for this growth is the existence of many benefits of being a self-employed entrepreneur.

Self-entrepreneurs, a source of transformation of self-employment

In 2009, when the status of self-entrepreneurship was created, there were only 152 such companies. The evolution of this status has continued to grow since then. Indeed, France now has more than 200 companies with the status of self-employed, according to INSEE (1).

Self-entrepreneurs are people who start their own businesses or who own an individual company in order to carry out a commercial, artisanal or liberal activity (2). The status of self-employed entrepreneur is open to all,can be exercised exclusively or complementaryly (next to another social status such as student, job seeker, retiree…). Just have an idea, a project, a business plan and you just have to start your own business.

At work you will then be“your own boss”,which is one of the advantages on the self-entrepreneur scheme. This status, which seems so practical and simple, obviously has some difficulties. The main points that hinder project owners from engaging in self-entrepreneurship are:

Expenses that are not deductible. Indeed, social security contributions and taxes are calculated on turnover and not on profit. A self-employed entrepreneur who does not make a profit will then be the actor of enormous expenses. The self-employed entrepreneur sets his bills without VAT, in other words tax-free. This inconvenience can also represent significant losses for the company.

The validation of quarters for retirement is different than an employee with a “classic” status. In fact, to validate its four quarters per year, it is necessary to validate a minimum turnover per year (about 20,000 euros for merchants, 12,000 euros for service providers and 9,000 euros for professionals, according to the website of the Legal Assistant). However, these disadvantages are accompanied by considerable benefits that contribute to the transformation of self-employment.

auto-entrepreneur work
The beginnings of the self-entrepreneur are facilitated by many advantages and in particular the speed of the formalities of creation.

The growth of self-employed entrepreneurs explained by certain benefits of the status

The increase in business start-ups is being felt in all sectors of activity. “In 2018, the transportation and warehousing sector is the largest contributor to the overall increase” with 70,400 new businesses. “The number of creations is accelerating strongly: 28,600 creations or 68% in 2018 after 25% in 2017″ according to INSEE (1). The second sector strongly affected is specialized scientific and technical activities” with more than 18,700 creations (1).

This interest and strong growth in self-entrepreneurship can be explained through various factors enabling social development and economic benefits. In addition to realizing his well-thought-out and well-prepared dreams and projects, the self-employed entrepreneur enjoys certain advantages:

This increase in the number of start-ups in self-entrepreneurship is due in part to the rise of registrations under the micro-entrepreneur regime. This approach allows to receive a Kbis (document issued by the Registry of the Commercial Court) which allows to attest to the legal existence of the company. Since 2015, immatriculturing his micro-enterprise is very simple,as reported by the micro-entrepreneur website.

Rather easy to implement reporting formalities

In fact, it is enough to declare its activity via the lautoentrepreneur.fr website, and to fill out the form Cerfa No. 13821-02. The final step to becoming a self-employed entrepreneur is to file your return with the CFE (Enterprise Formalities Centre) corresponding to the corresponding industry. In addition, registration fees are now free for the status of self-employed entrepreneur.

In addition to its practicality and speed of setting up the status, the self-entrepreneur has many aids to start his business. First of all, the self-entrepreneur can take advantage of information meetings of the Chamber of Trades and Crafts (CMA) sometimes joined by experts in the field to be supported in the launch or management of their business. If necessary, there are even preparatory courses that are paid for.

The Chamber of Commerce and Industry (CCI) also offers the same type of information meetings. There are also financial aids such as the Association for the Right to economic initiative (ADIE) which funds project owners through micro-insurance or micro-credits granted to the company in the making. Finally, the status of self-employed entrepreneur opens up to aid from the Employment Centre (such as the unemployment insurance allowance), the ACCRE (Help for the Unemployed Creating or Taking Over a Business) or the NACRE (New Support for Creation or Takeover).

A status acclaimed in New Aquitaine

Thanks to these many advantages given to self-entrepreneurs, new people embark on the adventure every year. Moreover, in all types of companies combined, their creations are increasing at the national level, but also in all French regions.

New Aquitaine had 17,491 self-employed entrepreneurs in 2017 compared to 16,077 in 2016, according to the New Aquitaine Region Prefect’s study of key figures for 2017 (3). The New Aquitaine region is in sixth position nationally in terms of start-ups with self-employment status with a 16.6% increase between 2017 and 2018, according to INSEE (4). Still behind regions such as Ile-de-France in terms of the number of start-ups with the status of self-entrepreneurs, New Aquitaine is still a major part of the development of the creations of these companies.

France is giving more and more consideration to the professional projects of its inhabitants. Many advantages compensate for the few difficulties that can be encountered as a self-employed entrepreneur. Indeed, the figures show a real increase in status at national and regional level. Choosing the status of self-entrepreneur to start a business obviously carries its risks. However, it is also a “fast way” to independence.

Sources:

  1. 18%” according to INSEE – Hugo GOURDON’s2018 business start-ups, 29/01/19
  2. Self-entrepreneur of the National Federation of Self-Entrepreneurs and Microentrepreneurs, 04/12/18
  3. Key figures for New Aquitaine 2017, the Prefect of the New Aquitaine region
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