the end of the aid heralds the death knell for a number of medium-sized companies

Aurélien Fleurot, edited by Solène Leroux
modified to

6:39 p.m., April 12, 2022

It’s a harsh reality check. With almost 10,000 business failures in the first quarter of 2022, the pace has accelerated significantly: +35% in one year, according to figures from Altares, historical expert and benchmark for business data. It’s not quite 2020 levels, but the acceleration has been abrupt for a few weeks. End of subsidies, changing consumption habits and in every second case the youth of the company is at stake.

“These companies didn’t have time to do their business. They did not have time without being able to benefit from all the help because there was not enough history of activity,” specifies Thierry Millon, Director of Studies, on the Europe 1 microphone at Altares.

The companies most affected by these outages

The expert also explains what types of businesses are involved: “These are small businesses, mostly in retail, in gastronomy, but also a few craft businesses in the construction industry.” In the construction industry, but also in the mechanical and metallurgical industries.

The loss experience is particularly pronounced among young companies (48% of insolvencies concern companies between 0 and 5 years old) and SMEs with fewer than 50 employees (645 SMEs of this size have failed, ie +56%). Most activities are in the red, but those aimed at the consumer, such as personal services, catering or retail, are more weakened.

Hauts-de-France, Burgundy… The most affected regions

The failures are accentuated by the uncertainties related to Covid-19 in January, the ongoing shortage of raw materials and the price increases. Hauts-de-France, Burgundy, Franche-Comté and Normandy are among the most affected regions in France in early 2022.

The reversal is also observed in almost all areas except Corsica. In the Île-de-France, on the other hand, the increase is twice as low as the national average.

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