Only 28% of French self-employed still active after five years

Just over a quarter (28%) of micro-entrepreneurs who registered in the first half of 2018 were still active under the regime five years later, according to France’s national statistics agency, Insee.

By 2018, the micro-entrepreneur regime had been in existence for 10 years, with around 400,000 people registered.

The study covered micro-entrepreneurs working in non-agricultural market sectors and divided them into six broad profiles.

The largest group was made up of ‘employees with a side business’, accounting for 27% of registrations. Almost all were salaried workers, and 76% had created their micro-entreprise as a supplementary activity.

They were closely followed by the ‘unemployed’ profile, at 26%. For eight out of 10 in this group, the micro-entreprise was their main activity.

‘Students’, including delivery riders and other young entrepreneurs, accounted for 18%. People ‘outside the labour market’, largely retirees or those who had previously been without professional activity, represented 13%.

Construction entrepreneurs accounted for 9% of registrations, while ‘experienced entrepreneurs’ made up 7%.

Construction businesses most likely to survive

Of those who registered in 2018, 28% were still active under the regime five years later. Students had the lowest survival rate, at 13%.

Construction entrepreneurs had the highest proportion still operating, at 37%, as well as the highest average turnover, at €27,600.

Average turnover among micro-enterprises still operating after five years was €19,600 in 2023.

Insee stresses that turnover is not the same as income, as social contributions and business expenses must be deducted. It estimates that income amounts to around 53% of turnover.

Even among construction entrepreneurs whose micro-entreprise was their main activity, average hourly income was only around the French net hourly minimum wage (SMIC).

Many combine business with paid work

Around four in 10 active micro-entrepreneurs also had a separate paid job.

Those whose business was their main activity worked an average of 120 hours a month. Construction entrepreneurs worked longer, averaging 140 hours a month when their micro-entreprise was their principal activity.