
Once supported by an arsenal of government measures, French companies are now facing an implacable economic reality. The end of government aid reveals the depth of the difficulties affecting many sectors and leads to a spectacular increase in business failures and liquidations. In this article, we will dissect the most recent data to understand the scale of this wave of failures, analyze the underlying causes and explore the paradoxes of this troubled period, where the will to undertake persists despite the obstacles. Because if the shadow of the crisis looms, it has not yet stifled the entrepreneurial spirit which, against all expectations, is vigorously manifesting itself in certain regions of the country.
An economy in crisis
The first half of 2024 marked a worrying turning point for the French economy, which is in great difficulty, with an unprecedented escalation in business failures. According to the National Business Barometer, collective proceedings jumped by 20.5% and reached a total of 30,406 companies in difficulty. This dramatic increase reflects a deep malaise, fueled by a degraded economic context. The real estate, construction and transport sectors, particularly exposed to inflationary shocks and the energy crisis, are among the hardest hit. Judicial liquidations, in particular, exploded with a dizzying increase of 66.1%highlighting the seriousness of the situation. The domino effect caused by the increase in the cost of raw materials and the drop in demand has created fertile ground for these serial bankruptcies, which affect both large and small companies indiscriminately.
Behind these figures lies the brutal reality of a suffering entrepreneurial fabric, orphaned from the aid that had enabled it to get through the health crisis. The gradual withdrawal of the ” whatever the cost ” has left businesses facing unprecedented economic adversity, where resilience alone is no longer enough. Lack of liquidity, coupled with increasingly restricted access to credit, has led many businesses to bankruptcy, with no possibility of recovery. This wave of failures reflects a structural vulnerability that support measures had temporarily masked. Now, this vulnerability is coming to light and threatens to transform the cyclical crisis into a full-blown systemic rout.
The other side of the coin: A desire to undertake despite everything
Paradoxically, while the French economy is reeling under the weight of bankruptcies, an unexpected dynamic is emerging on the business creation front. The first half of 2024 saw a 9% rebound in new registrations, a sign that the entrepreneurial spirit is holding up despite a largely unfavorable environment. This renewed initiative is partly due to the resolution of technical malfunctions of the new registration platform, which had hampered the ambitions of many entrepreneurs in 2023.
However, this phenomenon should not mask the deep disparities that remain. While some regions such as the Île-de-France, boosted by the effect of the Olympic Games, are recording strong growth, others, particularly the overseas departments, continue to sink, undermined by structural economic difficulties and a cruel lack of support.
Similarly, this desire to create contrasts sharply with the reality of certain sectors that are struggling to recover from the crisis. Accommodation, catering, as well as construction, continue to suffer from a shortage of labor and a drop in demand, thus slowing down any sustainable recovery.
This dichotomy between the creation and disappearance of companies highlights a two-speed economy. The French economy is at a decisive crossroads, where the rise in bankruptcies and entrepreneurial momentum coexist in a palpable tension. While certain statistics and the resilience of certain economic players inspire a certain optimism, they cannot be enough to compensate for the seriousness of the crisis that is affecting a large part of the economic fabric.
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