The economic recovery in 2021 has propelled support for entrepreneurship in France to new heights. After a cataclysmic year in 2020, the drivers of activity, with GDP growth of 7%, have accelerated the process to support new entrepreneurs and project leaders. “The year 2021 made it possible to erase the year of crisis 2020. 2021 even made it possible to break the records of 2019. This year has been intense and virtuous for our network”, declared Guillaume Pepy, the boss of the associative network of business financing Initiative France during a press briefing this Tuesday morning. “The crisis acted as a trigger for many French people, who had an idea, sometimes found themselves in a professional impasse”, he added.
The outbreak of war in Ukraine on February 24 could change the situation. The various business surveys conducted by INSEE and the Banque de France show a collapse in the morale of entrepreneurs and a surge in fears. After two long years of pandemic, the French economy has once again entered a zone of severe turbulence. Energy-intensive sectors are bearing the brunt of soaring prices. On the household side, morale is at half mast with a drop of 6 points in one month according to the latest figures from INSEE released on Tuesday morning.
29,000 entrepreneurs benefited from support and financing
In total, more than 61,532 project leaders were welcomed by this network established throughout the territory. In detail, support for the creation of new businesses is on the rise (+13% compared to 2019 and 32% compared to 2020). As for takeover projects, they are up compared to 2020 (+11%) but down compared to 2019 (-8.5%). Of the total number of companies hosted, Initiative France has supported and financed the creation or takeover of 18,990 companies by 23,000 project leaders. These companies have created or saved 53,000 jobs, according to the presentation made by Guillaume Pepy. However, it should not be forgotten that the pandemic has had particularly harmful repercussions for certain companies in the network or for employment in France.
During the waves of infection, many entrepreneurs found themselves unable to carry out their activity overnight due to the health crisis and repeated confinements. While the “whatever it takes” measures and the hiatus of commercial courts in 2020 have largely cushioned the blow, some economists expect a “normalization” of business bankruptcies and an upturn. difficulties. In total, the network points out that more than 5,700 companies have benefited from emergency funding.
Trade, hotels, cafes and restaurants at the top of the projects
Among the projects supported by Initiative France, trade, hotels and cafés-restaurants and business services represent the three most popular sectors. “It’s a great classic to find cafes and restaurants. It’s very important for the territories”, points out Guillaume Pepy. On the other hand, real estate, transport or agriculture come in at the bottom of the ranking.
Industry and agriculture nevertheless show extremely strong dynamics between 2020 and 2021. The main reasons that push project leaders to take over or create a business are the desire to be independent (47%), the desire to face new challenges (20%) or creating a meaningful activity (15%).
The honor loan lever
In 2021, the total amount of honorary loans amounted to 177 million euros. “The loan of honor amounts on average to 10,000 euros in France. A loan of honor has a significant leverage effect”, explains the president of the association and former CEO of the SNCF. This tool allows “to obtain the confidence of the banks” says Guillaume Pepy. According to the results presented during the press briefing, nearly 2 billion have been invested in the territories through BPIfrance honorary loans (62 million euros) and committed bank loans (1.8 billion euros).