Report reveals it's easy to start a business in France
by FFE EU News staff
Fears of starting a business in France based on taxes, financing and red tape have been cleared by an Ernst & Young report claiming that administrative steps in the country are quicker and simpler compared to other G20 nations.
Ernst & Young is one of the world's leading professional services firm
Laim Boogar, a Paris-based American entrepreneur and co-founder of Rude Baguette, said that despite bureaucracy the French led the way for efficiency. Aside from digitised interactions with the government, services are also free unlike in the US where interactions go through private companies, he said.
According to the Ernst & Young report, starting a business in France only takes 5 administrative steps compared to an average of 7.6 steps among G20 countries. Furthermore, it only takes an average of 7 days to start up in France, as opposed to 22 days in the G20 on average. Costs are also 10 times higher among G20 nations than in France.
Both Boogar and the report said that France’s CIR (Research Tax Credit) both led to improvements for research and development.
However, smaller businesses may have a more difficult time getting off the ground because of heavier costs. According to the report, France ranks 16th out of the 20 when it comes to “Access to Funding.” The United States claimed the top spot.
In addition, France ranks 9th in terms of “Entrepreneurship Culture,” a label that includes what Boogar called “embrace to failure.” He said it’s an area that the French needed improvement.
“Being allowed and encouraged to take risks is key to starting a business, and having a good climate for entrepreneurship.”