In France, it is small businesses that create jobs, not large ones.
Between 2012 and 2022, microenterprises created 870,000 jobs, SMEs 655,000, and mid-sized companies (ETIs) 346,000.
Meanwhile, large companies eliminated 173,000 jobs in their existing establishments, mainly increasing their headcount through acquisitions.
Another finding: public money is far from always being effective.
According to Dares, 61% of subsidized hires in the market sector would have taken place even without state aid.
Out of 20.8 billion euros devoted to subsidized contracts over ten years, this potentially represents several billion in windfall effects.
Job creation is concentrated in major metropolitan areas, while the former industrial basins of the North and East continue to fall behind.
Small businesses create jobs, large ones buy up companies, and the state too often subsidizes hires that would have happened anyway.
So .. (the right is right) we need to reduce the charges, norms and constraints weighing on entrepreneurs….and stop spending public money on useless subsidies (the left is right).
I would add a personal pinch of salt even though I don’t manage in France: administrative work is also a horror for SMEs/SMIs, as are absurd accounting requirements (keeping your 6-euro or 6-CHF McDonald’s receipts…)…removing that would only provide more comfort and ultimately relax the atmosphere for everyone.
The economy does not need sectarianism or ideology but common sense.
LinkedIn Sources
- Profile: Pierre Jean Duvivier dit Sage (LinkedIn)
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Frequently Asked Questions
FAQs Small Businesses and Job Creation in France
1 Is it true that small businesses create most jobs in France
Yes mostly In France small and mediumsized businesses account for the majority of employment and net job creation while large companies tend to shed jobs or grow slowly
2 What counts as a small business in France
The official term is PME An SME has fewer than 250 employees and annual turnover under 50 million or a balance sheet under 43 million Microenterprises have fewer than 10 employees
3 Why do small businesses create more jobs than large ones
They start from a small base so each hire is a big percentage gain They also grow faster in their early years while large firms often cut jobs through automation and restructuring
4 What share of jobs do SMEs provide in France
SMEs provide roughly half of all salaried jobs in the private sector and microenterprises alone employ around a fifth of privatesector workers
5 Do large companies really destroy jobs in France
Not always but their net job creation is often weak or negative Many large firms reduce headcount through automation offshoring or restructuring even when their revenue grows
6 Which sectors create the most jobs through small businesses
Services dominate retail hospitality personal services construction and business services Tech startups are also a growing source of new jobs
7 What problems do small businesses face when hiring
High payroll taxes and social charges complex labor law difficulty finding skilled workers and cashflow pressure Small firms also struggle to compete with large employers on salaries and benefits
8 What is the charges problem people talk about
Employer social contributions in France are high so the real cost of an employee can be 4050 above the gross salary This makes small firms cautious about hiring
9 Are there government schemes to help small businesses hire
Yes Examples include subsidies for hiring young people or longterm unemployed workers reduced social charges for low wages and the aide la création dentreprise for startups
10 How does French labor law affect small business hiring
Its complex and can feel risky for small employers especially around dismissals Recent reforms have simplified
