The status of auto-entrepreneur, launched in 2009, revolutionized the entrepreneurial landscape in France. At a time when administrative procedures were often an obstacle to business creation, this simplified regime allowed thousands of French people to embark on the entrepreneurial adventure. Less formalities, reduced social charges and simplified management have made this status a real gateway to entrepreneurship. But why the status of self-employed Did he have so much craze and how did he deeply change the situation for business creators? Here are the reasons that made its success.
1/ An unprecedented administrative simplification
Of course, what first made it easier for its implementation is the context. Indeed, precarious contracts multiplied and the status of self-employed entrepreneur offered an attractive alternative. He changed things because he allowed workers to get started without having to submit to a binding framework, in an increasingly digital and dematerialized economy. This status therefore played a major role in the rise of these new forms of independent work, more and more popular among the young generations.
Lightened procedures
However, if we have to quote the main reason for its success, it could be said that it is undoubtedly the administrative simplification it offers. Before its creation, many entrepreneurs hesitated to get started, discouraged by the complexity of administrative procedures and administrative heaviness linked to business creation. The status of self-employed has considerably simplified these approaches.
By opting for the status of self-entrepreneur, business creators no longer need to indictment in the commercial register, nor to write complex legal statutes. Registration is done directly online, in a few minutes, via a simple and quick form. The declaration and payment of social contributions, moreover, is also made in a simplified manner: a single tax to be paid, depending on the turnover achieved. This simplification allowed many French people to take the plunge and to undertake without being overwhelmed by a complex paperwork.
Elimination of barriers to the entrance
Before the advent of self-entrepreneur status, creating your business required a certain capital, often inaccessible to project leaders, as well as often complex administrative procedures. The self-employed regime therefore considerably lowered the barriers to the entrance, thus opening entrepreneurship to a large audience, especially those from modest environments or those who simply sought a complementary activity.
2/ an attractive tax and social regime
The tax and social regime proposed by the status of self-employed played played a key role in its success. Unlike other business forms, the self-employed benefit from a rate of lump sum and reduced social security contributions, which varies depending on the type of activity carried out (commercial, craft or liberal). This regime is all the more attractive since it allows to pay social charges only on the basis of the turnover actually achieved, and not on an estimated income.
One of the major advantages of self-employed status is the possibility of benefiting from a tax rate proportional to turnover. In other words, as long as the turnover is low, social and tax charges are also reduced, which makes the start of activity less risky financially. If the activity does not generate income, the auto-entrepreneur does not pay any charge. This is a decisive asset for beginners business creators who wish to test their project without taking significant financial risks.
In addition, the auto-entrepreneur can opt for the release of income tax, which makes it possible to pay income tax at the same time as its social security contributions, without having to wait for the end of the Year to pay your taxes. This option considerably simplifies tax management, by offering immediate visibility of activity -related costs.
3/ A springboard for freelancers and self -employed workers
The status of self-employed has enabled many freelancers, consultants and self-employed workers to structure themselves legally while benefiting from great flexibility of organization. By allowing these professionals to get started without having to create a complex company, this status has had a particularly positive effect on the professions linked to services, such as advice, design, writing, or even computer development.
The status of auto-entrepreneur is particularly suitable for people who wish to embark on an independent activity without worrying about the complex management of a more traditional company. By offering the possibility of exercising legally while limiting formalities, it allows freelancers and self -employed workers to focus on their core business, without being overwhelmed by too heavy administrative obligations. The status is ideal for people who wish to manage a small activity or embark on income, before developing more.
4/ Organizational freedom
Auto-entrepreneurs benefit from great freedom in the organization of their work. Unlike certain legal statutes, there is no obligation to respect a certain structure or organization of a business. Each auto-entrepreneur can define their working hours, prices and conditions of collaboration. This flexibility is attracting more and more people in search of better conciliation between professional and personal life.
5/ A formidable lever for the digital and collaborative economy
The digital boom and the rise of freelance platforms have also largely contributed to the enthusiasm for the status of self-employed. With the increase in professions related to digital, web and technologies, many young entrepreneurs have opted for this status as a springboard to launch their projects in innovative sectors.
The advent of collaborative economy platforms (such as Uber, Airbnb, or freelancers) found a fertile soil in self-employed status. These platforms allow millions of people to work independently, often in addition to their main activity. The status of self-employed entrepreneur made it possible to legitimize this form of work, by facilitating administrative procedures and by offering reduced but sufficient social security coverage. This more flexible model quickly appealed to a population looking for new professional opportunities.
6/ The effect of communication and a favorable public policy
The success of the status of auto-entrepreneur would probably not be as dazzling without the strong communication around this system and the active support of the public authorities. Indeed, this status was launched as part of an entrepreneurship support policy, aimed at encouraging business creation and boosting the economy.
The French authorities have set up a communication campaign to make citizens aware of the benefits of the regime, and have facilitated access to information for all those interested in this status. The possibility of accumulating a self-employed activity with another salary activity was also a factor that has encouraged many people to take the plunge. This entrepreneurship support policy has been strengthened over the years, with additional simplifications and transition assistance for self-employed entrepreneurs who wish to further develop their business.
