Tag Archives: #overdue

Covid 19 the Big One and good Cash management

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Covid 19 the Big One and good Cash management. The Big One is the name given to the earthquake which should one day engulf California if the forecasts of the seismologists are realized. In economic matters, the first half of 2020 probably has the status of Big One. An unprecedented global economic crisis that will take a significant toll financially. The slow emergence of containment that is emerging will put Cash at the center of business concerns. Neither profitability, nor productivity, nor the development of turnover will save companies, it will be Cash.

Approaching this subject with tools before the Covid 19 crisis is a mistake.

All indicators are broken and inaccurate; payment incidents are no longer recorded by the Banque de France, balance sheets are not closed, tax deadlines are postponed, social charges are not paid and payment behaviour is modified due to cash loans guaranteed by the State. However, all analyses, databases and decision-making tools are based on these indicators which will be at least inaccurate for several months.

For everyone, suppliers, customers and consumers, it is essential that economic activity restart. Questions will then arise relating to late payments and supplier credit limits to be set up for new deliveries. It is customer supplier relationships that will have to be reinvented to ensure that all economic players have a sufficient mattress of Cash to overcome this crisis, and those that should follow, according to some experts.

After the end of the lockdown the solution will not be to jump to the throat of customers who are late in their payments. We must invent a new partnership based on new deadlines and means of payment. Suppliers will have to support their customers by delivering goods on credit, customers will have to agree to pay on a regular basis even if they spread their payments differently. To date, the regulatory deadline for paying invoices is 60 days with a large due date. At the end of the lockdown it would be useful to extend the time allowed from 30 to 60 days but by establishing, for example, partial regulations every 2 weeks. It would be a “win / win” solution where the supplier anticipates part of their cash flow and the customer finances their purchases in a smooth and spread out manner. A real dialogue will have to be engaged between supplier and customer to weave a regular and trusting relationship.

Companies after the lockdown will have to focus on their core business, the production or purchase of products as well as their marketing. It has never been so useful to outsource Cash Management which consumes time and resources when done in-house. And this is one of the reasons why some companies are abandoning this approach, which is essential if they want to survive the troubled times ahead.

In France, the number of companies having been the subject of a bankruptcy procedure decreased

lower banruptcies rate

decrease of bankruptcies in France

In France, the number of companies having been the subject of a bankruptcy procedure decreased by 4.8% last year compared to 2018. There were 52,000 failures in 2019. These are 2,500 companies less than in 2018 who went to bankruptcy or were placed in receivership or safeguard proceedings. In the fourth quarter of 2019 alone, the decline even accelerated.  The improvement is visible in almost all trades. The number of liquidations has dropped significantly. In construction, trade, industry, business and personal services, and catering, bankruptcy is declining sharply. Road freight transport and IT and communications are sectors which experienced an increase in bankruptcy last year. One of the explanations for this good overall performance in 2019 is that household consumption held up even if it was not as dynamic as we might have expected. The domestic economic context is rather better than that of our neighbours. Job creation is still strong in 2019, which also contributed to good economic activity. Second, interest rates are still very low, which helps companies finance themselves at lower cost. After the crisis of “yellow vests”, the State was able to support companies in difficulty.  Small businesses have held up well last year if they haven’t fallen, that doesn’t mean they are doing well. Many suffer. The treasuries continue to be strained. Another fact that puts the drop in corporate bankruptcy a bit into perspective last year, many SMEs and even a few mid-size companies have experienced difficulties. Almost 350 SMEs with more than 50 employees went to bankruptcy in 2019, almost one per day. In the last three months of the year, 100 failed. The difficulties of SMEs are concentrated in the manufacturing industry. Some face forced transformation issues linked to sustainable development, in the automobile for example. As a result of the bankruptcy of SMEs, the number of jobs threatened by bankruptcy increased slightly in 2019, by 1.6%, to 175,000. How will the coming year go? Growth is expected by economists to a level comparable to that of 2019, that is to say from 1.2% to 1.3%. For 2020, there is no fear of a sharp increase in the number of bankruptcy but it seems unlikely that we will fall below the threshold of 52,000 collective proceedings. We could be around 53,000 failures for the year 2020.

 

Hypermarkets in France a new deal. A lot of Hypermarkets make losses.

Hypermarkets the new deal

Hypermarkets in France

Hypermarkets in France a new deal.

In France, consumption declined in most Hypermarkets in 2019. The glass is half empty or half full. Optimists will find that two thirds of the Carrefour Hypermarkets in France make money. Pessimists will point out that a third of the park pulls down the result of the branch. The issue is also sensitive to Auchan, the other chain of very large Hypermarkets. In its December issue, the trade magazine “Linear” examined the “evil of self-service hypermarkets” and advanced “the real numbers”. The trade magazine recalls that the self-service hypermarkets Carrefour, Auchan and Casino recorded sales of 2.7 billion euros between 2014 and 2018, of which one billion for the first two. Consumer habits are changing. Consumers commute less and tend to local supermarkets. The shift from non-food shopping to e-commerce and specialized supermarkets also explains the dissatisfaction of certain Hypermarkets. “Linear” keeps its figures from union sources. According to this information, the decline in sales is associated with a decrease in profitability. Carrefour France’s hyper integrated and franchised companies reportedly had a current operating deficit of 132 million euros in 2018. For comparison: Auchan Retail France generated a profit of 479 million in 2014. Operating profit (80% of activities are carried out by Hypermarkets) decreased to -155 million. The magazine also confirms that “89 businesses would make losses” at Carrefour Hypermarkets SAS ‘191 locations in 2018. The Carrefour Group does not comment on these figures, which it does not publish. In an interview with “Linear,” Marie Cheval, general manager of consumer markets, only states that 41 Hypermarkets will launch Rebond, “an operating model that inspectors entrust to directors to compensate for deteriorating profitability.” Dejan Terglav, General Secretary of FGTA-FO from Carrefour, responds to “Les Echos” and assesses all these figures as “likely”. He fears that the group will default to leasing around twenty hypermarkets. Carrefour has started to revive its consumer markets. 2018 is the first of the Group’s transformation plan that has invested particularly in competitiveness and prices. This strained numbers and margins. Kepler Cheuvreux underlined this “conscious strategy”. Since then, sales space reductions have been initiated, such as the rental of space to Darty. The Hypermarket soldier needs to be saved.

Who pays debt recovery costs in Europe

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Who pays debt recovery costs in Europe In Germany the debt recovery costs charged to private or professional debtors are fixed by law. The list of debt recovery costs is detailed by the legislator, which goes as far as quantifying the amounts that can be claimed for a simple reminder letter. This is a major difference between France and Germany, France going so far as to prohibit the recovery of individuals. The German Federal Ministry of Justice and Consumer Protection wants to reduce debt recovery costs by 50% with a new draft “law to improve consumer protection in collection costs”. German professionals are “upwind” against this reform, their arguments being presented below. This reduction in debt collection costs would affect not only debt collection agencies and lawyers, but also creditors facing higher costs. According to the recovery professionals, this would be a reversal of the polluter-pays principle. Typically, two to six months elapse between receiving and closing a file. And in cases where a trial becomes inevitable, the handling of the case will take three to six yearsThe objective remains to recover the claim amicably. In this regard, even before the first reminder letter, many test steps, data comparisons and solvency checks are performed. On this basis, an individualized debt recovery strategy in relation to the debtor’s situation is determined. In this way, recovery professionals can decide, through which communication, how often and for what purpose, to manage this file. The German project stipulates that consumers will only be required to pay the debt recovery costs of a collection service provider or a lawyer if they have been informed in time. The project would impose the information of the debtor by an undeniable and proven action of the financial risks it incurs if it does not pay its bills. The decrease in the recovery costs payable would result in a profound change in the profitability of the German debt collection services. For the German recovery professional’s two possibilities open up to them: either the collection service providers reduce the scope of their activities by adapting them to their revenue prospects. Or the creditors bear part of the costs of the collection service. For the Germans it is a reversal of the polluter-pays principle. Because it is not the creditor who misbehaved, but the debtor, and this one, should pay for his bad behaviour. The Germans also want to differentiate between private and commercial debtors. Late payments in companies must be as low as possible. In order to achieve this objective, the German legal system is expected to inflict serious legal consequences on debtor companies that do not respect their commitments. In general, the German collection professionals ask that we move away from the flat-rate collection costs and replace it with a gradation of these costs related to the difficulty of collection. The problem of recovering unpaid bills is a hot topic in all developed countries. Very often individuals are protected and for companies the commercial relationship that we are trying to maintain is a real obstacle to rigorous practices in terms of debt recovery costs. Prevention is one of the first levels to be used to first make every effort to ensure that payment delays are reduced to the minimum. The development of digital and new means of payment will certainly change the situation by significantly reducing outstanding payments. However, it is indisputable that we must penalize the bad coaters and the professional latecomers who use and abuse supplier credit. Finally, it is up to the legislator to put in place simple and inexpensive judicial systems and procedures to sanction bad faith behaviour. It is absolutely abnormal that in very many cases no proceedings are initiated because the costs to be incurred are disproportionate to the unpaid claim. The professionals of bad faith are perfectly informed. Georges Vonfelt GEVO

Commercial desertification of the city centre is not inevitable a german small city example for revitalization.

Commercial desertification of the city centre is not inevitable.A German city of 19,000 inhabitants Wassenberg has tried an interesting experiment to put an end to the commercial desertification of the city centre.

In Wassenberg the initial observation reflected a situation “dark and desolate”

One retailer after another had to close his store. Few passers-by were lost in the shopping street. The city of 19,000 inhabitants in North Rhine-Westphalia was hoping for help. Thanks to a marketing consultant the revitalization was a success. Wassenberg has had a fate in recent years, shared by many small and medium-sized German cities: the commercial desertification of the city centre. The reasons for this situation are identical throughout Germany (as in France).

On the one hand, young people prefer to spend their money on online shopping rather than in downtown stores.

On the other hand, the big cities of the region, often through shopping centres, attract customers ready to buy. Wassenberg faced a particularly high number of competitors. Many people preferred to go shopping in Aachen, Düsseldorf, Mönchengladbach or Cologne. In addition, Wassenberg is on the Dutch border. Its inhabitants are within a 20-minute drive of a very popular factory outlet called Roermond.

 

It all started with a market analysis that consisted of studying neighbouring cities by asking the question: what do they offer in terms of businesses?

It quickly became clear that there would be no point in attracting a new H & M or Lidl as the demand for this type of product is being met by local competition bids.

The marketing expert then examined the demographics and purchasing power of the population and found that the population was mostly high-income, mature people. In order to survive as a small town against the big rivals, you had to occupy niches to fight again the commercial desertification of the City centre.

To determine these niches any offer that existed within a radius of 20 km around the city was eliminated. The commercial desertification of the city centre has been halted thanks to a new concept based on four “growth pillars”:

 

Culture,

pleasure,

tourism

and events.

 

The aim was to create themed outlets for which development potential has been identified and which do not exist in neighbouring cities.

For the “pleasure” growth pillar, restaurants have been opened.

For the “Tourism” growth pillar, new businesses have been created for hikers and leisure enthusiasts. A nature park is located near the Schwalm-Nette region, on the border of the Netherlands.

For the growth pillar “culture”, artists such as painters and musicians were approached, and they were able to choose empty stores for readings, lectures and exhibitions.

At the heart of the concept is the growth pillar “events”.

It has been set up a night market once a month. As with all other pillars, this market should only offer quality products, not cheap clothing or other hardware items such as sale. On the other hand, this new market offers home-brewed draft beer, wines, bread, cheeses and typical culinary specialties.

The market has brought people back to the city, which has also benefited existing local businesses. There was suddenly a central anchor event. In the past, people dreamed of the big city. Today, they find parties, drinks and good food in their own city. Result: citizens feel good and are connected to the city again. It is a new acceptance that has not existed for decades. Today, people say, “This is my city.”

Meanwhile, nearby cities like Erkelenz and Geilenkirchen have followed suit and have also established night markets: “Plagiarism is always the best compliment of less inspired contemporaries.”

You have to offer what the online retailer cannot offer: a combination of services and products, more personalized. Today, Amazon and local retailers often offer the same products. Then, retailers are surprised to see that people are learning and testing products locally, but then go to Amazon and order there.

The gradual disappearance of city centres is also due to the development of shopping centres. While many cities think that these huge buildings will be an economic engine, the marketing specialist of Wassenberg thinks the opposite: “These blocks of concrete make disappear the animation and the diversity of the city centres and are already gradually exceeded”, explains the expert. According to this expert, shopping centres are an indicator of urban mismanagement: architects were often responsible for designing large sales areas. Only when the buildings are in the process of completion will developers begin to look for tenants for commercial space. In fact, it would be necessary to do exactly the opposite of doing marketing studies before instead of creating commercial surfaces through architecture and only eventually to ask: who is supposed to go? ”

Instead of shopping centres, you have to rely on a concept he calls Emma Quartier. Many small shops with individual offers, which do not compete but complement each other. “I do not go downtown because I want to buy a jacket at H & M, but because I want some spice”, for example

Kirsten trusted the concept and opened her “Dumb in the Café Post” shop: “I’ve always dreamed of owning a boutique, but it’s always been difficult,” she says, and then she learns about the projects. of the city of Wassenberg in a newspaper and she said

“It’s my chance, if it’s not now, it’ll never be”

His concept, a shop where different artists can exhibit their works and where they have the opportunity to use a free workshop. She found her local thanks to the help of the municipality. In the meantime, she moved and expanded her store, so that not only artists can be staged, but one can also have breakfast in the morning and a coffee and cake in the afternoon, workshops are made available, lectures and readings are organized. The move from the periphery stores to the centre of the city was also initiated this operation was called: healthy shrinking. It is in the interest of all companies looking for qualified personnel to offer businesses and sufficient animation to motivate newcomers to settle in this type of city.

Why does it work in some cities and not at all in others? “Because this must be a top priority, if the mayor puts trade as a top priority for his city and is fighting for it, it will make the process easier. Wassenberg Mayor Manfred Winkens is looking forward to a new life in his city. “By 2020, we will propose nearly 60 different cultural events,” he said. “From art exhibitions to outdoor events such as the book market, the medieval market, cabaret nights and concerts.”

This example cannot be transposed as is in France because the concept of “ droit au bail” to lease is completely unknown in Germany. These notions are a real brake and handicap an average French city in the fight against the commercial desertification of the city centre. I was recently confronted with the following ubiquitous situation: on the outskirts of Strasbourg for a commercial space of less than 200 m2 empty for a long time and for which the owner asks a rent of 4.000 € per month the taker was obliged to fulfil a lease entitlement of € 50,000. For years, the “ droit au bail or pas de porte “ has been considered in many studies as obstacles to French growth and Europe has often expressed its wish to see a modernization reform initiated on this subject.

Georges Vonfelt GEVO Sarl

B to C debt collection costs in France a nightmarish situation when debtor is an individual.

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B to C debt collection costs in France a nightmarish situation. The B to C debt collection costs in France were the subject of a new judicial decision dated September 26, 2019. This decision concerns the collection costs charged to individuals by the collection agencies. The decision of the Administrative Court is as follows. The collection of damages from the debtor must, except to qualify as deceptive marketing practices, be preceded by a justification of the nature and amount of the damage alleged. According to the judges the only fact for the administration to note that neither the proof of bad faith, nor that of the reality and the quantum of the damage, were reported, was sufficient to reclassify the damages and interests in debt collection costs constituting deceptive marketing practices. The burden of proof of the bad faith of the debtor and the loss suffered is on the creditor. Failing this, the collection firm is exposed to heavy criminal penalties for deceptive marketing practices. The context of this decision is related to the practices of some French recovery firms that try to make debtors pay damages by referring to Article 1231-6 of the Civil Code. The root of the problem is related to the small amount of the claims in the B to C files. To make their actions profitable some collection firms do not hesitate to claim substantial damages from the debtors to cover the debt collection costs incurred. The Court’s decision confirms that in practice and for debtors with a private person status, it is in fact impossible to claim recovery costs except to risk very heavy penalties. How to produce receipts for debts of a few tens of euros. And it is equally true that not paying small bills for an individual is a real lawless area, the debtor not in fact risk anything to pay his bills when he sings, if he decides to pay. No one is going to expose the debt collection costs of proceedings for a claim of a few tens of euros.

Hedge Fund the rise of one whom nothing predestined to become the best manager of history.

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Hedge Fund the rise of one whom nothing predestined to become the best manager of history “The man who solved the riddle of the markets” Wall Street Journal’s Greg Zuckerman’s book is the book that everyone is talking about on Wall Street. He portrays the rise of one whom nothing predestined to become the best manager of history. The mathematician Jim Simons, whose fortune exceeds 23 billion dollars, is at the origin of a UFO: the Medallion fund. Since 1988, this quantitative hedge fund has recorded an average annual gain of 66.1%, reduced to 39% after deducting its commissions. Over 20 years (1985-2004), George Soros’ hedge fund (Quantum fund) had an average annual return of 20.2%. Prize of excellence Aware of its value, the Medallion Hedge Fund has taken the highest rates in the industry, 5% of assets and 44% of profits generated through its performance. Hedge Fund typically take between 1.5% and 2% of assets and 20% of profits. Given its success, this Hedge Fund no longer accepted money from investors since 1993. In 2005, it was reserved exclusively for employees of the Hedge Fund. For Simons, this fund was to remain relatively small, less than $ 10 billion, to continue to perform well. The founder is aware of the law of diminishing returns in the financial world: the more the capital is important, the more a manager is struggling to remain as efficient.

Inconceivable In an interview with “Institutional Investor” in November 2000, the founder of Renaissance said: “Today we manage $ 4 billion, perhaps $ 7 to $ 8 billion in the future. But 70 billion, never! It is inconceivable. I am 62 years old and in the next three years I would like to pass the torch. Today the Hedge Fund manages $ 110 billion, and Jim Simons retired in 2010 while remaining involved in his company, being non-executive chairman. The Medallion has been a fantastic Hedge Fund appeal and advertising product, which has launched other funds such as Renaissance equities. He managed the increase in his assets and the change in size of his fund. “Make money when I sleep” In 1978, Jim Simons left his position as professor of mathematics at Stony Brook University to found his first Limroy Hedge Fund. Like other traders of the time, he tries to anticipate the decisions of the Federal Reserve but without much success. Yet at the time, he consulted the opinion of an economist, Alan Greenspan, who would become the president of the Fed between 1986 and 2007. His poor results prompt him to seek a trading system without human interference. “I do not want to worry about markets every minute. I want models that make me earn money when I sleep. He then embarked on quantitative management in the futures markets, particularly commodities. It speculates on potatoes, oil or pig carcasses but again the yields are random. The Hedge Fund, Renaissance Technologies, which was born in 1982, decided to move up a gear and began to build systematic and rigorous quantitative management. “There are movements and configurations in the markets that are not ‘visible to the naked eye’ by traders, but Renaissance wanted to exploit these anomalies in a systematic and rigorous way,” says Greg Zuckerman. Grey matter The fund is progressively recruiting the best mathematicians, astrophysicists, linguists, artificial intelligence specialists and computer scientists. It ensures their loyalty by allowing them to invest their bonuses in the Medallion Hedge Fund, where the average investment of employees is now around $ 50 million. Those who leave the company are subject to very strict confidentiality agreements and a non-competition clause over a very long period. It is not possible that they go into another Hedge Fund to disclose the secrets of the company.

The “home culture” of Renaissance, the antithesis of that of Hedge Fund of the time, was in three words: humility, patience, work. No star manager took positions according to his “instinct”, a word banned internally. His traders had to follow the signals of mathematical models and never take personal initiative. In fact, very few Wall Street professionals have been recruited by Renaissance who prefers to hire IBM alumni. The Medallion fund also invested some of its money in about 40 Hedge Fund. It was a way to seize opportunities that he had not identified himself while benefiting from information feedback on the markets. Data gathering. To help it achieve good market forecasts, this Hedge Fund was one of the first to recognize the importance of having as much financial data as possible. He has collected very old and good course histories. Databases often contain errors that a statistics specialist was responsible for flushing out and correcting. The fund was collecting data that was not available to its competitors: one of the contributors regularly went to the New York Fed in Manhattan to manually collect prices on bonds that were not public. Anticipating the rise of “high frequency trading” (ultra-fast trading machines), the fund invests early in technology and computers at the forefront to increase the speed of its transactions and be the first to seize opportunities. The “gross” anomalies in the markets have long since disappeared and the fund must innovate to remain efficient. “The mathematics we use can be sophisticated,” he told Institutional Investors, “but we start from data analysis, we do not have preconceived notions.” “In our business, we want action, we appreciate a certain level of volatility. In 2008, the year of the financial crisis, the Medallion fund jumped by 80%.

 

Business failures in France

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Business failures in France. It’s an encouraging signal for the French economy: French companies are less likely to experience Business failures. Their number was 10,500 in the third quarter of 2019, according to the count made by the company Altares, down 6.4% compared to the same period last year.

This is an exceptionally low level, unmatched since 2007. The improvement is notable in construction, retail, catering and personal services. Even sectors such as business services and industry – particularly agribusiness – are experiencing a decline in Business failures.

Increase in claims of large Companies

All is not rosy however, since the average size of the failing companies increases. Thus, 73 companies with more than 50 employees went to court in the third quarter for Business failures, against 56 at the same time last year. As a result, the number of jobs threatened by these Business failures is growing. Nearly 37,300 jobs are at risk, 2,350 more than in the summer of 2018. These Companies alone account for nearly one third of jobs at risk.

“It has been several quarters since the Business failures of large Companies increase quite markedly,” said Thierry Millon, director of studies of the company Altares. Children’s clothing stores Orchestra, the airlines eagle Azur and XL Airways suffered disappointments last quarter.

Threats in the fourth quarter

Why are some large Companies experiencing more Business failures than before? “The activity has been pretty good since the end of 2015, but some companies have used their money to manage their working capital needs and not to solidify their growth. Today, with the slowdown, they are in financial difficulties, “says the expert who also notes” a degradation of payment behaviour since the spring. ” Vigilance is therefore in order. With a particular focus on the fourth quarter, marked last year by increased difficulties for some businesses and in the restoration because of the movement of “yellow vests”. However, this winter, the public transport strike on the pension reform is threatening.

Signs of weakness in the automobile and construction

Without large-scale social movement, “this year, the number of Business failures should be around 53,000, down from 2018 when France had experienced 54,700 Business failures, according to Thierry Millon. Again, this would be the lowest level since 2007. Even if it should remain low next year, the loss ratio will however hard to maintain at this low water level next year. “Some sectors are showing obvious signs of weakness. This is the case of the automobile or construction for example, “said the leader of Altares. On the other hand, companies should be able to count on the expected healthy performance of household consumption.

Secret information from a debt collection company.

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The secret information of a debt collection company is a first-rate tool for assessing and analysing the solvency of a company. The proof of this is the example of a large company with over € 20,000,000 turnover whose accounts are supervised and validated by an auditor, and which enjoys a good credit rating with the rating agencies. This company filed for bankruptcy overnight. How could the credit rating agencies validating the solvency of the company be so wrong? Why has the auditor not been alerted?

In reality, this company used a large number of foreign subcontractors and did not pay their invoices changing supplier on multiple occasions, as unpaid foreign suppliers were reluctant to act because of the relative modesty of their claims.

The unpaid invoice files against this company have accumulated with a debt collection company specializing in international debts. The latter immediately suspected serious difficulties when it became impossible to reach anyone in the accounting department. Small instalments were paid irregularly. A payment order for a small fee was contested by the company’s lawyer without any indication of any reason. You did not have to be a top-flight financial analyst to understand that this company was in fact terminating payments. Judicial action for a few thousand euros caused the filing for Bankruptcy.

Another example of a well-hidden secret is the following. The subsidiary of a large group contacts a debt collection company. She wishes to entrust him with the recovery of all his 6-digit client account. As this is a company specializing in B to B services, the customer post is the main or only asset of this company. It turns out during the processes initiated by the debt collection company that most of these claims were disputed, that the disputes were serious and the position of the creditor company legally fragile. In fact, the sole purpose of the creditor was to defend the client item vis-à-vis its auditor by acting with a debt collection company to avoid a massive depreciation of this asset.

The debt collection companies so decried and vilified would have a role to play in the prevention of the difficulties of the companies by having for example a right of information strictly confidential of the organs of control to prevent before it is too late to cure.

Companies start-ups in France

Companies start-ups in France

Companies start-ups in France. After weakening in July and then falling in August, start-ups rebounded in September. According to the French statistic office, their number rose by 4.2%. Over a year, they posted a jump of 16.6%. Microenterprises now account for more than 47% of all creations. Companies start-ups are on the rise in France. After a slump in the summer, largely due to the drop in the number of registrations of micro-entrepreneurs, they are indeed up again in September. According to data published by the statistic office on Tuesday, all categories combined, they rose 4.2% last month. A rebound that makes it possible for the first time to cross the threshold of 70,000 companies created in one month and close a mixed quarter with a slight increase in July and a drop in August. In detail, in September, 70,605 new companies were created. This increase is mainly due to the strong growth of micro-enterprise registrations (+ 6.8%, with 33,618 new listings) and, to a lesser extent, to the average business sector (+ 2%, with 36,987 new entities). 16% year-over-year increase Over twelve months and this time in raw data, the number of new companies has increased by 16.6%, a pace close to that recorded for several months. Here again, these creations are largely driven by micro-enterprises which, over one year, jump by 26% and now represent more than 47% of all new structures identified. At the same time, the number of new conventional sole proprietorships rose by 10.6% and that of companies by 8%. By sectors, the statistics highlights the “growth” of “support to businesses” which, with 27,900 creations over the last twelve months, shows an increase of 17.4%. However, this is not where creations of companies are the most dynamic. With an increase of 25% over twelve months, the industry is in the lead, followed by household services (up 21%) and real estate activities (+ 20%). Fragile dynamics Good health that many experts impute to the various measures voted to precisely promote the development of micro-enterprises. These measures include the doubling of turnover thresholds below which it is possible to benefit from a simplified tax and social system that is much lighter compared to the traditional system. The dynamic is however fragile. If the executive has agreed to give up the publication of the decree aimed at reducing social security exemptions for micro-entrepreneurs, it is still looking to save 600 million euros in 2022. And asked the professionals to present it economic proposals before the end of the vote on the finance bill this autumn.