Evolution of the entrepreneurial dynamic
The Entrepreneurial Dynamism Index (EDI*), which represents the ratio between the number of start-ups and the number of discontinuations of commercial companies, reveals a -4% decrease in start-ups and a +12% increase in discontinuations in 2024. This situation is exacerbated by a growing share of liquidations in the total number of disappearances, rising from 22.3% in 2023 to 23.1% by the end of May 2024.
Regional analysis
Some French regions are more resilient to this trend. The Auvergne-Rhône-Alpes, Bretagne and Pays de Loire regions, for example, have higher indices than the national average, demonstrating greater resilience in a complex economic and political situation.
Sector focus
The post-pandemic economic impact of Covid-19 varies from sector to sector. For example, the Building and Public Works sector, representing more than 31% of French companies, has managed to maintain a positive FDI of 1.1 despite the ongoing challenges of rising material costs and difficulties in the real estate market. Conversely, the Agri-food sector, which had achieved an FDI of 1.7 in 2021, is now below 1, reflecting an inability to renew its population of economic players.
Worsening claims experience
At the end of May 2024, the loss ratio for commercial companies was on the rise. The loss ratio, defined as the rate of judicial liquidations in the disappearance of commercial companies, is increasing significantly. In the "Wood, Paper and Cardboard" sector, for example, the proportion of compulsory liquidations in the number of business disappearances reached 31.9% at the end of May 2024, compared with 31.8% for the whole of2023. The Textile, Clothing and Leather sector also recorded an increase in claims, rising from 27.7% in 2023 to 29.6% in 2024.
The decline in entrepreneurial dynamism in France in 2024, marked by a decrease in business start-ups and an increase in business closures, poses significant challenges for the economy.
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