FIRM-DEMOGRAPHY a key to the French Economy
Small rather than large companies shape the future
INTRODUCTION: WHY THAT SITE ? Measuring firm and job creations, their funding and the role of the tax system.
David Birch, the inventor of firm-demography, shook the economic world in the late 70’s by showing that employment is not made by large companies, those that are found on the front pages of the media but by small and very small companies. The Kauffman Foundation went one notch further by showing with economist like Haltiwanger and the Census Bureau that employment is the result of jobs created by startups the year of their birth and the year thereafter and that they loose employment afterwards.
This site is dedicated to researching whether France follows the same model; it investigates firms and jobs creation in France, their funding and the influence of tax systems.
Latest articles
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Where are French High Growth Firms?
27 July 2012, by Nathalie DROALFrench unemployment can be explained with a comparison of gazelles’ creation figures. At comparable population, there are in France five times fewer creations than in the US and 2 to 3 fewer creations than in Germany or the United Kingdom. The tax system is directly responsible for this situation. Where are French gazelles? Comparison France - United States The Kauffman Foundation made a study on the 1% and 5% highest growth firms in the US and their impact on job creation ( D. (...) -
Bercy’s ignorance about our small business world
1 July 2012, by Nathalie DROALThere are not enough gazelles in France because our Treasury and the organ establishing tax laws (the DLF) show deep ignorance about business creations. Bercy’s ignorance about our businesses world Is this because of the training of our senior civil service? It this because, though they graduate often from executive business schools, they have never worked in small companies? Their lack of knowledge about the French businesses world is enormous. Companies represent more than 75% of (...) -
French unemployment, lack of gazelles and Bercy laxity.
25 June 2012, by Bernard ZimmernFirm-demography offers an explanation of French unemployment, based on 10 years of research and hundreds of studies with some 20 listed on this site. In France, we create 200,000 jobs a year less than we should, by not creating enough "gazelles". This is the failure of a tax administration, Bercy, that does not understand business creations and did not want to copy what works abroad. French unemployment? Lack of "gazelles", laxity of Bercy. The explanation of French unemployment is (...) -
French unemployment continues to rise
15 June 2012, by Nathalie DROALDespite all President Sarkozy’s efforts, unemployment has continuously increased since 2007. That is unfortunately the conclusion we draw from DARES and international statistics. Eurostat data shows a French unemployment rate at 9,7%, compared to 8,4% in 2007, which means an increase of more than 15%. But it is far from taking into account all the unemployed people. It follows the narrow International Labour Organisation (ILO) definition. In application of the international definition (...) -
How the National Institute of Statistics and Economic Studies (INSEE) conceals French disaster about creating companies and jobs
27 May 2012, by Nathalie DROALJob creation by new firms, as published by INSEE and used by Eurostat, is apparently at the same level in France and Germany. The truth is we are creating 2 to 3 times fewer companies born with employees * –the ones that can grow, become "gazelles" (High Growth Firms) and export - than Germany and England and, therefore, 200 000 fewer jobs per year. How did our National Institute conceal this disaster? Focus on a deliberate misinformation. If an economist visits Eurostat statistics, he (...) -
Is CDC Entreprises useful outside of the "com" for the State?
8 April 2012, by Bernard Zimmern, Emmanuel SalaCDC Entreprise is the operating arm of Caisse des Dépôts,
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French companies dwarfism (3)
6 April 2012, by Romain SautardThough birth of new companies or growth of high growth firms lag behind UK and Germany, the increase in overall private employment is parallel. The reason of that apparent inconsistancy is found in the creation of low skill jobs by government French programs, such as home service jobs. But this does not increase exports and the cost to the public budget of those jobs is tremendously high. The French companies « dwarfism » (3) Recent studies performed by IRDEME show that, compare to its (...) -
French firms dwarfism (2)
13 March 2012, by Romain SautardThe number of firms born without employees has been exploding in France but those born with employees, employer firms, have been steadily and ridiculously half Germany and UK
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French companies dwarfism (1)
13 March 2012, by Romain SautardThe French trade deficit has been attributed to the lack of medium size companies but in fact France is lacking firms in all sizes above 10 employees.
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High Growth Firm in France
20 January 2012, by Romain SautardIRDEME, with the help of the pH Group (Experian), performed a study on the high growth firm in France (see definition below). It is the first time that such a study is done for France. Indeed, even OECD which has developed an observatory of high growth firm does not have data on such French companies as this kind of companies is not tracked by INSEE (French statistics office). Definition of High Growth Firms The most dynamic companies, called High Growth Firms (HGF) have the following (...)