Paris, May 25, 2023 – The month of April 2023 witnessed a significant increase in the number of business births in France, according to the latest data released by INSEE, the French National Institute of Statistics and Economic Studies. The report indicates that business registrations rose by 3.7% compared to the previous month, following a 1.3% increase in March. This positive trend was observed across all sectors of the economy, contributing to the overall growth in entrepreneurial activity.
The surge in business births can be attributed to a rise in registrations by both micro-entrepreneurs and conventional businesses. Micro-entrepreneurs’ registrations experienced a substantial increase of 4.9% in April, compared to a mere 0.2% growth in the previous month. Similarly, conventional business births recorded a 1.7% increase, following a 3.2% growth in March. These figures reflect the resilience and dynamism of the French business landscape.
Over the past twelve months, from May 2022 to April 2023, the total number of business births increased by 1.5% compared to the same period a year earlier (May 2021 to April 2022). This indicates a sustained growth trend in entrepreneurial activity in France, despite the challenging economic conditions caused by the COVID-19 pandemic.
It is important to note that the recent implementation of new electronic registration procedures for businesses has temporarily impacted the accuracy of monitoring business births. The changes in registration delays within the SIRENE business register have resulted in some variations in the recorded figures, particularly during the initial months of 2023. Therefore, caution is advised when interpreting the data for the early part of this year.
The data also reveals sector-specific insights. In April 2023, business births showed positive growth in all sectors, except for real estate activities, which remained stable. The sectors experiencing the highest growth in business births were transportation and storage, with a notable increase of 12.7% compared to the previous month, and education, human health, and social work activities, which saw an 8.0% increase. Business support activities also witnessed a steady rise of 2.6%.
However, there was a slight decline in the number of business births over the last three months when compared to the same period a year earlier, with a decrease of 0.3%. This decline was primarily driven by a significant drop in company births and conventional sole proprietorships’ births, which decreased by 7.1%. On the other hand, registrations by micro-entrepreneurs increased by 4.2% during the same period.
The transportation and storage sector experienced the most significant decline in business births over the last twelve months, with a notable decrease of 22.0% compared to the previous year. This sector had initially experienced significant growth during the height of the health crisis.
The data further highlights that self-managed micro-entrepreneurs accounted for a substantial portion of business births in the past three months, representing 62.9% of all business registrations. This indicates the increasing importance of micro-entrepreneurship in driving entrepreneurial activity in France.
Overall, the rise in business births in April 2023 reflects a positive outlook for the French economy, showcasing the resilience and innovation of entrepreneurs across various sectors. While some caution is necessary when interpreting the data due to recent changes in registration procedures, the overall trend indicates a favorable environment for business creation in France.