6 times more often cap of 5 years than others

November 30, 2011 12:00 AM
6 times more often cap of 5 years than others

If business can be a challenge in itself, its sustainability is be a daily struggle. According to a study published by the Insee, only a company out of two is still active 5 years after its creation. These data are the result of a survey of 215 000 created companies in 2002 who participated in the study SINE 2002 (new business information system), interviewed 3 years and 5 years after their creation (2007). First observation: 52 created and interviewed in 2002 still existed in 2007. That is what may explain that an SME is better than another According to the Insee, several decisive factors are involved. First of all the choice of the sector of activity: If in 2002, a company created in four of the trade sector, in 2007, only 46 of these businesses were still in activity, which makes the sector in which companies are less perennial. However, with 54, the rate of survival at 5 years of the business services sector is the highest (in 2002, more than one company in five had been created in this sector). Another success factor, that of the initial investment. The creator invests the creation (installation in premises, purchase of materials, stockpile) over the company a chance to be perennial. Thus, companies created with at least 80 000 euros of investment are, all things being equal, 1.7 times more often active in 2007 than those created with less than 2,000 euros. In reality, 21 of companies start with less than EUR 2 000, and only 14 with at least EUR 40 000. If the importance of the initial investment is obvious to some, this leaves doubt as to the sustainability of some new activities created without real investment, especially in the self. But of course, some areas require less investment than others, especially in the provision of services. The choice of the legal form also appears as a determining factor in the future of small business. Indeed, 59 of companies were still in activity 5 years after their creation, compared to 47 of individual firms. The status of society seems better sustainability of individual company. Of course, the creation of company is also based on the experience of the creator. In 2007, 60 of the enterprises run by a designer with at least ten years of experience in a near trade activity of the company still existed, against 48 and 51 of those where the job of the leader was different when the latter had no professional experience. Six creators graduates of higher education in ten were still in activity five years after the creation of their business. Significant information: the profile of the creator. All do not appear to be equal to the sustainability of their business. The activities created by young people and women seem to stop more quickly. 49 of businesses created by women were still active in 2007, compared with 53 of those created by men. While it is true that is also less ready to women and youth, the study shows that these differences of sustainability persist even in ways équivalents "External elements to the enterprise, as for example the compatibility between family and professional life" could explain this difference, said Insee. Final sustainability factor identified by the Insee: turnover and the number of employees: "cross companies with the number of employees has increased in the first 3 years, all things equal, 1.6 times more often cap of 5 years than others." Similarly, more turnover increased 3 years after the creation, more chances of sustainability of the company at the age of 5 are high. It is the first year of existence that halts are the most numerous: 12 of the established enterprises in 2002 stopped before their first birthday. Startup activity is therefore fundamental for emerging companies. The rank of the success factors is the motivation of the creator, his coaching and training. Creators: make accompany you! Positive point of this study: the conditions of implementation of the project take precedence over the profile of the creator. There is therefore not inevitable, the preparation of the project remains capital!