Business creation continues to increase in 2006

Virginie Fabre, Insee

The creation of completely new businesses increased by 4% in 2006, after large increases in 2003 and 2004, and a stable year in 2005. On the other hand, takeovers are at a low for the second consecutive year (­ 5%); this is also true for resumptions (­ 1%). In general, the number of business creations is again on the increase (+2% compared to 2005). Business creation in the construction, real estate and business services sectors is still very active, even though it was down in most other business sectors in 2006. The regions that were least attractive in previous years have this year attracted a greater number of entrepreneurs. The number of companies being created is growing rapidly (+ 5%) whereas the number of unincorporated businesses is slowly decreasing. This tendency began in 2003, with the result that the proportion of unincorporated business creations within the total number of business creations is constantly reducing. 86.5% of new businesses are created without employees. The creation of businesses without employees is also a way of generating self-employment. The number of unemployed people benefiting from the ACCRE scheme (Government funding for unemployed people starting or taking over a business) continues to increase (+ 13% during the first eleven months of 2006); it has risen two-and-a-half fold since 2002.

Insee Première
No 1120
Paru le : 26/01/2007