Insee PremièreThree out of four enterprises registered in 2014 still active three years after creation

Audrey Dorolle, pôle Démographie des entreprises et des établissements, Insee

Three years after their creation, 75% of enterprises registered in the first half of 2014, excluding sole proprietorships under autoentrepreneur tax regime, were still active, 3% higher than for enterprises set up in 2010. The increase in business survival rate is attributable to a more favourable economic climate and strong performance in three sectors : construction, wholesale and retail trade, accomodation and food service activities. However, the business survival rate in those sectors remains lower than the national average, while the business survival rate for enterprises in the education, human health and social work activities remains the highest.

Besides the economic activity of the enterprise, legal form plays a key role. Companies tend to be more resilient than sole proprietorships. Creators who set up a business with prior experience in their activity tend to outperform those without experience. The chances of survival correlate positively with the level of resources invested at the outset. However, the survival rate is lower in large towns and cities than in rural areas.

After three years, six out of ten enterprises still active report being satisfied with their most recent financial year performance. The impact on employment of enterprises registered in the first half of 2014 was neutral between 2014 and 2017: jobs created in enterprises still active offset employment losses from enterprises that fold.

Insee Première
No 1751
Paru le :Paru le25/04/2019
Audrey Dorolle, pôle Démographie des entreprises et des établissements, Insee
Insee Première No 1751- April 2019