Study on small enterprises born in 2004
Thursday 26 May 2011, by
Definition of Small Enterprises (as defined by the European Community) an Small and Medium Enterprises
The Small Enterprises (SEs) have the following characteristics:
- Less than 50 employees
- Turnover or equity less than 10M€
The Small and Medium Enterprises (SMEs) have the following characteristics:
- Less than 250 employees
- Turnover less than 50M€ or equity less than 43M€
The data used in this study include all French firms defined as SEs by the European Community created in 2004. This study shows their evolution in term of employees from 2004 to 2005.
Around 70 000 enterprises are considered in this study:
|Num. of employees||
Thus, for the SEs established in 2004, only 0.5% of these companies are outside of the scope in 2005 (no longer considered as SEs), that is to say they have either more than 50 employees in 2005, a turnover and / or total assets exceeding 10 million Euros in 2005, or both.
Companies leaving in the scope of SEs, which can be considered as the most dynamic, have an average capital that is significantly higher than the other companies as shown in following table:
|Num. of employees||
Thus, on average, the level of capital used at the creation of businesses leaving the scope of SEs in 2005 is 173 times (!!) higher than the companies that are still SEs in 2005. Indeed, the seed-capital level is significantly higher for companies leaving the scope of SEs with an average capital of around 5 000K€ at their creation compared to an average capital of around € 29K for firms remaining SE in 2005.
Businesses out of the SE scope in 2005 are also more dynamic in job creation:
|Num. of employees|| |
Thus, companies outside of the SE scope, which represent only 0,5% of the SE created in 2004, represent more than 5% of total employment in 2005. Moreover, as shown in the table below, these companies also have a very high employment growth rate. Indeed, the number of employees of companies leaving the SE scope in 2005 doubled from 2004 to 2005, while the number of employees of companies remaining SE grew by 16.6%.
|Num. of employees|