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Why Do 77% Of Self-Firms No Longer Exist After 5 Years?

77% Of Self-Firms No Longer Exist After 5 Years?

A study by INSEE released on September 19th that of the 360,000 micro-enterprises launched in 2010, only 77% remained perennial. Of the 100 self-employed entrepreneurs registered in the first half of 2010, 38 were never active and were subsequently canceled. And out of the 62 who started an activity, only 23 are still active.

Abandoning purely or creating a new form of society?

The Micro-Enterprise she showcases a true sustainable business where she just helps supplement his purposes? The INSEE does not reveal this, but it is known that the survival rate decreases when the activity created is immediately considered secondary. (34% vs. 41%).

By comparison, the standard company statutes SAS, SARL, SA, EURL and SASU, 60% are still in operation, including individual companies (50%).

The average annual turnover of a micro entrepreneur does not exceed € 10,200

The high drop-out rate of micro-enterprise status can be explained by the low income generated. Indeed for self-employed entrepreneurs registered in 2010 and still active in 2015, the average reported turnover in 2014 was € 10,200. In the case of a main activity, the turnover is € 12,800, whereas for secondary activities, the average figure is € 7,770. In 56% of cases, it is less than 5000 €.

The more perennial services sector

INSEE observes that the sector of activity greatly influences the proportion of micro-enterprises still active 5 years after their registration. For example, personal assistance services, the survival rate climbs to 46% for health and social work and 35% for education. On the other hand, only 19% of them are still in business five years later. The notion of age is also important in the lifetime of self-employment: only 16% of self-entrepreneurs under 30 years of age in 2010 are still active under this scheme 5 years more while 21% of 30-39 year olds and 28% of 40-49 year olds and 31% of those aged 50 and over are still active