Business Perceptions of the New French Regime on Auto-Entrepreneurship: A Risk-Taking Step Back from Socialism

Cahier du CEREN, Vol. 29, pp. 46-61, 2009

16 Pages Posted: 15 Jul 2009 Last revised: 26 Jan 2010

Arvind Ashta

CEREN EA 7477 Burgundy School of Business - Université Bourgogne Franche-Comté

Sophie Raimbault

Université de Bourgogne - Burgundy School of Business

Date Written: May 15, 2009

Abstract

France has a rather low rate of enterprise creation. Institutional analysis helps to explain why this is so. Nevertheless, in the last few years since 2003, France has been modernizing its legal framework to stimulate enterprise creation and this has achieved some success. A new regime of Auto-entrepreneur has recently been introduced in early 2009 as a new start up mechanism, creating a lot of buzz. This paper presents the new French regime and its accountancy and tax inputs, explaining the economic motivations of the new institution and its limitations. The paper presents results of a questionnaire administered to CEO's of small business enterprises on their perceptions of this regime. The research indicates that the entrepreneurship law is perceived to be risky for tax and social security revenues, lack of entrepreneurial capabilities, lack of social security net for failed entrepreneurs, and increased competition for small enterprises from their own employees. Future directions for research are indicated in entrepreneurship and microfinance, business regulation and globalization.

Keywords: Entrepreneurship, microenterprise, microcredit, French law, socialism, capitalism, regulatory analysis

JEL Classification: G38, K20, K34, M13, P00, P10, P11, P12, P16, P20, P26

Suggested Citation

Ashta, Arvind and Raimbault, Sophie, Business Perceptions of the New French Regime on Auto-Entrepreneurship: A Risk-Taking Step Back from Socialism (May 15, 2009). Cahier du CEREN, Vol. 29, pp. 46-61, 2009 . Available at SSRN: https://ssrn.com/abstract=1434177

Arvind Ashta (Contact Author)

CEREN EA 7477 Burgundy School of Business - Université Bourgogne Franche-Comté ( email )

29 rue Sambin
21000 Dijon
France

Sophie Raimbault

Université de Bourgogne - Burgundy School of Business ( email )

29 rue Sambin
Dijon, 21006
France

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