United Kingdom

Articles

• France : Twice less businesses, three times less employment created than in Germany
  26 May 2011, by Rose Blackburry

  Is this the best kept statistical secret in France? These figures are not found on Eurostat where newly created businesses and jobs appear similar for France and Germany.
  On the contrary, French official statements celebrate the success of start-ups creation without taking into consideration that almost all companies being created are without employee, so that we do not know whether these companies are empty shells.
  To avoid this, several international statistics agencies, including (...)

• French unemployment continues to rise
  15 June 2012, by Nathalie DROAL

  Despite 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 (...)

• Firms having more than doubled their equity
  26 May 2011, by Rose Blackburry

  The graphs below show the share of French firms (Figure 1) and English firms (Figure 2) with equity having more than doubled between 2003 and 2004 by age and level of equity in 2003.
  These graphs show that the share of firms doubling their equity is about two times higher in the United Kingdom than in France. This difference is even more important for recently born companies and for companies with lower capital stock.

• Private equity and venture capital
  27 May 2011, by Rose Blackburry

  At the beginning of their life, private company can use several means of funding: Personal capital of the entrepreneur (or its friends and family) Business angels Venture capital
  This funding can occur during the seed and early stages of the company life cycle.
  The venture capital is a subset of private equity. Therefore all venture capital is private equity, but not all private equity is venture capital.
  As described by the Private Company Financial Data Authority, “private equity (...)

• French companies earnings
  20 January 2012, by Romain Sautard

  In a previous study on equity capital of French companies, we have shown that, compared to British companies, French firms are undercapitalized. One of the potential reasons of this difference is that French companies earn fewer profits than British ones.
  Indeed, during a company life cycle, the main funding source for investments comes from the profits earned during the year. This is called self-financing. National accounting of non-financial companies shows that this kind of companies (...)

• Business Angels
  27 May 2011, by Bernard Zimmern

  Venture Capital and the birth of the Business Angels
  The term Business Angels (BA) was created around 1985 by Professor William Wetzel, University of New Hampshire, USA. It is indeed in the preceding years, during the 60’s and the 70’s, that BA have expanded in the USA under the effects of a law passed in 1958 by the US Congress aware of the funding problems of start-ups: the Small Business Investment Act.
  This law aims to encourage individuals to invest in start-ups creation. As shown (...)

• Funding and firm creation
  17 May 2011, by Bernard Zimmern

  Companies created by necessity and companies created by opportunity
  In order to create a company, you need cash to allow the company to survive at least for the sales to balance the expenditures.
  That is why most of the companies are created without employee, with minimum fixed costs. But they create few or no jobs, managing, but not all, to feed their creator. Following a categorization given by the Global Entrepreneurship Monitor (GEM), one has to distinguish companies created by (...)

• Comparison of the results obtained using capital stock and equity
  26 May 2011, by Rose Blackburry

  There are more companies for which both employment and equity rather than employment and capital stock. This difference is even more important in the United Kingdom, where, from 1996, the reporting companies increased twofold when equity rather than capital stock is considered.
  UK firms with equity exceeding € 100 000 at their creation have an employment level growing less quickly than companies having a capital stock exceeding this threshold (while having a growth rate about two times (...)

• High Growth Firm in France
  20 January 2012, by Romain Sautard

  IRDEME, 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 (...)

• French companies dwarfism (3)
  6 April 2012, by Romain Sautard

  Though 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 (...)