Determinants of Entrepreneurship in France

Posted: 24 Nov 2009

See all articles by Candice Henriquez

Candice Henriquez

affiliation not provided to SSRN

I. Verheul

Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE); Erasmus Research Institute of Management (ERIM)

Ineke van der Geest

affiliation not provided to SSRN

Casandra Bischoff

affiliation not provided to SSRN

Date Written: 2002

Abstract

The recent decline of entrepreneurship in France isinvestigated, as well as the factors that contributed to the development ofentrepreneurship and the role of government policy.The decline ofentrepreneurship between 1972 and 1998 may be attributed to high unemploymentrates and to the French government's tendency to support large businesses in aneffort to boost employment. Because the French economy is highly centralized, in that importantindustries are characterized by the dominant role of large companies thatovershadow small business clusters, the environment is not conducive toentrepreneurial activity.Over the last two decades, the government hasintroduced measures designed to promote entrepreneurship. A number of policies,however, counteract one another and send confusing messages regarding the valueof small- and medium-sized enterprises (SMEs).For example, the governmenthas established programs to create more innovative startups but continues toburden SMEs with heavy taxes and to deny self-employed people a fair share ofsocial security. The influence of French culture on entrepreneurship takes the form of strictregulation and centralized decision-making. In other words, the typical Frenchorganization is a microcosm of the national economy.It is not surprising,then, that few French people have considered launching entrepreneurialventures.The few who do run their own businesses frequently faceopposition from the government.It remains to be seen whether France'srelatively anti-entrepreneurship policies will promote the growth of SMEs byforcing firms to find creative ways around restrictive government regulations.(SAA)

Keywords: Startups, Public policies, Employment rates, Regulations, Taxes, Unemployment rates, Social welfare, Centralized economies

Suggested Citation

Henriquez, Candice and Verheul, Ingrid and van der Geest, Ineke and Bischoff, Casandra, Determinants of Entrepreneurship in France (2002). Entrepreneurship: Determinants and Policy in a European-US Comparison, Vol. 27, p. 83-120 2002. Available at SSRN: https://ssrn.com/abstract=1511548

Candice Henriquez (Contact Author)

affiliation not provided to SSRN

No Address Available

Ingrid Verheul

Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE) ( email )

Burgemeester Oudlaan 50
3062 PA Rotterdam, NL 3062 PA
Netherlands
+31 10 4081398 (Phone)
+31 10 4089146 (Fax)

Erasmus Research Institute of Management (ERIM)

P.O. Box 1738
3000 DR Rotterdam
Netherlands

Ineke Van der Geest

affiliation not provided to SSRN

No Address Available

Casandra Bischoff

affiliation not provided to SSRN

No Address Available

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