Job losses among owners of very small businesses soar

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More and more entrepreneurs, especially those who run VSEs, are losing their jobs. According to figures compiled by the firm Altarès from the commercial courts for the GSC employers’ association, the jump is nearly 30% over one year in the first quarter, with 18,519 jobs lost. Bosses in hotels, restaurants and drinking establishments (+60.8%) are particularly affected by this increase, which varies greatly from one region to another.

The increase reached 63.4% over one year in Hauts-de-France, and 43.5% in Bourgogne-Franche-Comté, against only 10.2% in Ile-de-France. The job losses of business leaders concern in 88% of cases the owners of very small businesses (TPE) achieving less than 500,000 euros in turnover. For three-quarters of them, they are at the head of structures with less than three employees, micro-enterprises, managed by auto-entrepreneurs, are not taken into account by the study.

Business leaders with more than 20 employees continue to see their job losses fall, by 13% for structures between 20 and 49 employees and by 16.3% for those with more than 50 employees. The median age of business leaders who lose their jobs is 46.7 years old.

Businesses: bankruptcies jump in the second quarter (+49%) and approach the pre-Covid level

Employers’ organization GSC urges business leaders to insure themselves against the risk of job loss

Unsurprisingly, the pattern of job losses for bosses closely follows that of corporate insolvencies, which have started to rise this year after falling nearly 50% in 2020 and 2021, due to protective measures for the cash flow of companies set up during the health crisis.

“The crisis is not behind us, it is ahead of us”, predicts the president of the GSC association, Anthony Streicher, who does not exclude that the level of 50,000 to 60,000 business leaders losing their jobs each year, the pre-pandemic figure is exceeded. This is why the association encourages entrepreneurs to take out insurance against the risk of job loss with private insurers.

The annual business failure rate between July 2021 and July 2022 is slightly increasing. Nevertheless, in value terms, the level remained some 32% lower than before the crisis.

Energy sobriety on the menu of Medef summer universities

It is in this anxiety-provoking context that the Medef summer universities are opening today. The question of the cost of energy will largely be invited into the debates, with an intervention by Elisabeth Borne, this Monday, on the subject. In front of the bosses, the Prime Minister must call on them to “general mobilization” in terms of energy sobriety. An initial assessment of the actions taken by companies to reduce energy consumption could be made at the end of September or in October.

In an interview with Le Figaro, the boss of bosses, Geoffroy Roux de Bézieux, believes that “the more crises follow one another, the more resilient companies become”.

He pleads for the government “not to abandon its supply-side policy which has borne fruit, in terms of growth and employment, since 2015”. For the manager, “today we have a level of taxation on profits and capital in line with the European average, but there is still a long way to go on production taxes and we are waiting, before going any further, the confirmation of the abolition in one go of the CVAE in the 2023 budget”.

(with AFP)