Entrepreneurial vitality in 2022 - A slowdown without a collapse

PARIS, May 4, 2023 /PRNewswire/ -- On the occasion of the publication of its focus on entrepreneurial dynamism in France, Ellisphere has surrounded itself with experts to take stock of the situation and present some perspectives for 2023. No alarmism, but no excessive optimism either, given the uncertain context.

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The renewal of the entrepreneurial population is guaranteed, but the dynamic is running out of steam.

In metropolitan France, in the year 2022, 1.5 entities were created for every 1 company that disappeared. In 2021, the entrepreneurial dynamism index (EDI) was 1.7 creations and in 2020, 2 creations for 1 disappearance! A drop in dynamism is essentially due to a strong increase in the number of business closures. Indeed, only 5.8% of disappearances are the result of a judicial liquidation, still below the 10% or more before the Covid-19 crisis.

IDE Balance Sheet Study: https://www.ellisphere.com/en/documents/dynamisme-entrepreneurial-en-france-a-fin-2022/

It should be noted that if the EDI of commercial companies is increasing, that of individual companies is decreasing.

The Overseas Departments and Regions (DROM) remain dynamic in 2022. With 1.6 business start-ups for every 1 disappearance. The number of business creations continued to increase significantly at +3.6%, while the number of business disappearances fell by 4.5%.

In metropolitan France, two sectors are doing well. Energy, on the one hand, continues to grow with an Entrepreneurial Dynamism Index of 5.3, up from 5.1 in 2021. The number of new Energy businesses jumped by +35.1% in 2022, but did not reach the record level of 2021 (+78.2%).  Financial Services, on the other hand, were also very dynamic. Their Entrepreneurial Dynamism Index is 2.7 in 2022. EDI is therefore back to the record level of 2018 (2.7).

In contrast, other sectors are barely renewing their business population or no longer do so at all. This is the case for Agriculture & Fishing, Textiles, Pharmaceuticals, Household goods, Telecoms...

Article EDI Max Review https://www.ellisphere.com/en/dynamisme-entrepreneurial-bilan-2022/

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SOURCE Ellisphere