Business creations in France are close to one million in 2021, a new historic record

Nearly one million companies were created in France in 2021, an increase of 17.4% compared to the previous year, a new historical record,
announced INSEE on Friday.

In total, 995,868 companies were created in France last year, compared to 848,164 in 2020, which had already been a record year.

Household services at the top of the podium

The sharp increase in business creations last year is explained by “the particularly low level of creations during the first confinement in 2020”, according to the press release from INSEE. As in previous years, the dynamic of entrepreneurship was driven in 2021 by new registrations of autoentrepreneurs, which exceeded 640,000, up 17%, but also by those of new companies, up 24.3 % to more than 270,000.

Conversely, the status of traditional sole proprietorship is less attractive, with registrations increasing by only 1.7% over the year, and even falling by 12.3% in the fourth quarter. In 2021, business creations that have increased the most are those in household services, up 30%, financial activities and insurance (+30.6%), information and communication (+25.4% ) and transportation and warehousing (+24.9%). This last category notably includes home deliveries, which have exploded with the health crisis.

Decline at the end of the year

But all business creations fell by 1.4% in the fourth quarter compared to the last quarter of 2020, in particular due to a decline in the sub-category “other postal and courier activities” – which includes deliveries – and which recorded 9,300 fewer creations over one year, a sign that the boom in new registrations of delivery people has come to an end.

The creation of companies continued to progress, by 7.7%, over this period. Finally, after a 3.6% drop in November, business creations rebounded by 0.8% over one month in December, notably thanks to the business support (+5.3%) and construction sectors. (+5.6%). Last month, registrations of microentrepreneurs, which represent 64.4% of the total, increased by 2.7%, while those of traditional sole proprietorships fell by 2.4%.

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