Rapport Ernst & Young 2013 sur l

Rapport Ernst & Young 2013 sur l'entrepreneuriat

-

Documents
12 pages
Lire
Le téléchargement nécessite un accès à la bibliothèque YouScribe
Tout savoir sur nos offres

Description

Rapport Ernst & Young 2013 sur l'entrepreneuriat

Sujets

Informations

Publié par
Publié le 30 août 2013
Nombre de lectures 82
Langue English
Poids de l'ouvrage 1 Mo
Signaler un problème

T he power of three
T ogether, governments, entrepreneurs and
corporations can spur growth across the G20
The EY G20 Entrepreneurship Barometer 2013
Country profles
Argentina
Australia
Brazil
Canada
China
• France
Germany
India
Indonesia
Italy
Japan
Mexico
Russia
Saudi Arabia
South Africa
South Korea
Turkey
United Kingdom
United States
European UnionFrance at a glance
Franck Sebag
Marc LhermittePartner, VC & IPO Leader,
FraMaLux, EY Partner, Advisory, EY
France starts hearing the call of its entrepreneurs
although major obstacles remain
Key facts
Overall Barometer ranking Quartile 2
Population 66 million
GNI per capita (PPP) US$36,460
GDP growth 0.0 %
Exports as % GDP 27.0%
Source: The World Bank, 2012
France has plenty of potential as a source of innovative and competitive new ventures, but has
struggled to convert this into solid support for its entrepreneurs. This is an unfortunate reality
for a country of this size and at this level of development (it is the ffth largest economy in the
world in terms of GDP). An important part of the problem appears to be the lack of a cultural
foundation for entrepreneurship. In this area, France’s entrepreneurs were much more negative
than their G20 peers, according to the EY G20 Entrepreneurship Barometer 2013.
Beyond this cultural aspect, the level of taxation is perhaps With this in mind, signifcant reforms to the higher education and
the clearest obstacle, both in terms of its direct effects on research sectors over recent years have been welcome, although
entrepreneurs, and as a symbol of the country’s relative unease results will take some time to feed through. Similarly, on the tax
with private enterprise. Business taxes are above the average front, there has been signifcant progress with the introduction of
for mature economies. And although the Government’s attempt tax credits that subsidize the cost of R&D and, more recently, of
to introduce a 75% tax rate on wages above €1m has yet to be labor.
clearly defned and implemented, it has sent an unfortunate signal
The Government has also recently moved entrepreneurship
1about the country’s support for entrepreneurship.
up its agenda, in response particularly to pressure from the
2On the other hand, France has clear strengths too. It scores “pigeon movement,” a group of disgruntled entrepreneurs. In
very highly in the education and training pillar of the EY G20 January 2013, the Government started a consultation process,
Entrepreneurship Barometer 2013, due to its strong levels of which by midyear had resulted in 14 new measures to boost
public investment here. Spending on research and development entrepreneurship, showing just how much progress can be made
(R&D) is also high, although these inputs aren’t necessarily relatively quickly. All these moves are a step in the right direction
matched by the outputs. This is perhaps clearest in relation to towards unlocking France’s undoubted entrepreneurial potential.
R&D, where France underperforms in terms of the number of
patents fled.
1 “French taxes: Another absurdity,” The Economist website, economist.com, accessed 15 July 2013.
2 “‘Pigeon’ Entrepreneurs Take Hollande Tax Protest to Web,” Bloomberg Businessweek website,
businessweek.com, accessed 13 July 2013.
2 | The power of three The power of three | 3Mature G20 economies average:
entrepreneurship culture
Overall score: France
Labour related taxes (% of profits) Regulation and culture scores
60
50
Entrepreneurship culture
pillar score
40
30 G20 average
23.9Regulation pillar score
20
100 1 2 3 4 5 6 7 8
0France
Mature G20 countries
*annotate for 2012
Entrepreneurship cultureImproved access to new funding sources
Microfinance Innovation and research culture35%
Family and friends 35% Celebration of self-made wealth
Angels 35%
Entrepreneurship as a career choice
Public aid 41%
Attitude to risk
Crowdfunding 57%
Fear of failure
Entrepreneurship culture
0 2 4 6 8 10
France
G20 average
Time to start a business
140
120
100
Entrepreneurship culture 80
60
Innovation and research culture
40
G20 average
22
Celebration of self-made wealth 20
0
Entrepreneurship as a career choice
Attitude to risk
Fear of failure
0 2 4 6 8 10
*annotate 2010-2012 average
France
Mature G20 economies average
24%
Make your voice heard
Public spending on education and training as a % of GDP
7Join the debate SWOT analysis
6
Tweet #G20ey G20 average
5 4.8
Strengths
4ey.com/G20ey
• France tops our education rankings due largely to high 3
levels of public spending.
2
• France has boosted its innovation incentives in recent 1
years — with a research tax credit and special status for
0
innovative start-ups.
• It’s much easier to start a business in France than on
average in the G20, in terms of the cost, time and red
Equal weight scores tape involved. The Government plans to develop an
France’s pillar scores compared to mature G20 economies average
e-administration system, to further simplify administrative *annotate 2010-20012 average
8 procedures for companies.
7
6
5
4 Weaknesses
3 Access to venture capital
2 • The vast majority of France’s entrepreneurs still
5 1 feel that the country could do more to encourage
0
entrepreneurship.4
G20 average• Labor costs are high and exert a signifcant drag on
3.03
entrepreneurship.
2• France’s capacity to encourage and fnance the
development of potentially world-leading companies is France 1
Mature G20 economies average weak.
0Source: EY G20 Entrepreneurship Barometer 2013 • Despite some new “born global” companies, international
development of French entrepreneurial businesses
remains limited.
A lot of France’s entrepreneurial potential
*annotate 2009-2011 averageOpportunitiesremains untapped
• The Government is increasingly aware of
French entrepreneurs still have to push against signifcant
entrepreneurship’s importance as a driver of growth and
headwinds in order to succeed, but there are welcome signs of a
employment.
shift in government attitudes. There is a clear willingness to do
• The Government has promised increased stability for more to encourage entrepreneurial dynamism, and promising
entrepreneurs with a fve-year moratorium on changes to moves have been made to encourage innovation in particular.
key business and investment tax rules.Entrepreneurship would really beneft if there were a concerted
effort to bring down France’s high taxes — particularly labor taxes. • Initiatives to connect education, research and industry in
clusters should help France boost the effectiveness of its
R&D.
• World-leading businesses in energy, life sciences,
transportation and aerospace can help stimulate small-
business activity in these sectors.
Threats
• Without much better technology transfer, the potential
commercial benefts of public research will not be realized
as effciently as they could be.
• Signifcant reductions in the tax burden are unlikely due to
fscal weakness and a lack of political will.
• The heavy tax burden faced by entrepreneurs may have
an adverse effect on their drive and risk appetite.
2 | The power of three The power of three | 3
Access to funding
Coordinated support
Tax and regulation
Education and
training
Entrepreneurship
culture
South Africa
US
UK
Indonesia
Saudi Arabia
Canada
South Korea
Japan
India
Turkey
Australia
Germany
Mexico
EU
Australia
Argentina
Canada
Brazil
Italy
Russia
Turkey
Italy
US
China
France
France
Mexico
South Korea
UK
EU
Indonesia
Germany
India
South Africa
Turkey
Saudi Arabia
Japan
Japan
China
Russia
Russia
Argentina
Italy
India
Germany
China
Australia
Argentina Indonesia
Canada
Italy Brazil
South Korea
South Korea
Mexico
Russia
US
Turkey
UK
Mexico
Brazil
Brazil
South Africa
Japan
EU
Germany
Saudi Arabia
South Africa
Argentina
France
France
EU
India
UK
China
Australia
Canada
Indonesia
Saudi Arabia
US
Number of days
% of GDP Taxes as a % of profitsMature G20 economies average:
entrepreneurship culture
Overall score: France
How the government
What to watch for is helping
Public Investment Bank Persistence needed to implement new economic plan
(BPI France)
France’s high levels of taxation are a key obstacle in the development of
entrepreneurship in the country. This is particularly true of labor-related taxes France’s new public investment bank merges
and contributions, which are more than twice as high as the G20 average. a number of existing bodies in two broad
Efforts to address these formed a central plank of an economic program activities: BPI France Financing (formerly
3published by the Government in late 2012. OSEO) and BPI France Investment (formerly
CDC Enterprises, FSI and FSI Régions). The The Government’s investment commissioner — Louis Gallois, the former CEO of
BPI will provide loan guarantees, co-fnancing, EADS — had proposed a “competitiveness shock” involving a €30b reduction in
4 direct loans and investment in capital, as well payroll taxes. In the end, the Government wasn’t as radical as this, introducing
5 as broader business support services. It will a smaller tax credit spread over a number of years.
invest €12b in entrepreneurial businesses by
The new Tax Credit for Competitiveness and Employment (CICE) amounts to
2017.
a total tax break of €20b, with a 4% credit for eligible payroll costs in 2013
6rising to 6% from 2014. By default, the tax credit is deferred for a year, but Launch date: 2013
entrepreneurial businesses can get an advance from the Government in 2013. Most relevant pillar: access to funding
One advantage of the Government’s economic plan is that rather than focusing
solely on labor costs, it aims to tackle a range of barriers to enterprise in France.
The program comprises a total of 35 proposals, some of which could improve Competitiveness clusters
7the lot of French entrepreneurs. For example, in January 2013, €500m in new
France’s 71 competitiveness clusters aim to credit lines for small businesses was released to the successful entrepreneurial
develop synergies and cooperative efforts by business development agency, Oseo.
bringing together businesses (both large and
One of the program’s fagship institutional reforms is the creation of a Public
small) in a specifc region, along with research
Investment Bank (BPI), which will merge all the public bodies that currently
laboratories and educational establishments. 8provide funding to small business. This should streamline things for businesses,
Introduced in 2005, the clusters now by giving them a single point of contact when applying for public funding.
comprise 7,200 frms, employing 760,000
Entrepreneurs will also beneft from measures being implemented from a major people. Of these, 73% are entrepreneurial
entrepreneurship consultation that the Government started in early 2013, the businesses, 15% are midsized frms and 12%
“Assises de l’entrepreneuriat.” are major companies.
Launch date: 2005Labor related taxes (% of profts)
Labour related taxes (% of profits) Regulation and culture scores Most relevant pillar: coordinated support
60
50
Entrepreneurship culture
pillar score
40
30 G20 average
23.9Regulation pillar score
20 French labor-related taxes
10
0 1 2 3 4 5 6 7 8 at 51.7% of profts are over
0
France double the G20 average of
Mature G20 countries 923.9% (2012)
*annotate for 2012
Source: The World Bank, 2012
Improved access to new funding sources Entrepreneurship culture
3 7 “Hollande hits cautious note on labour costs,” Financial Times website, ft.com, accessed 16 July 2013. “France offers businesses €20bn tax break,” Financial Times
4 website, ft.com, accessed 16 July 2013. “French competitiveness: Shock treatment,” The Economist website, economist.com, accessed 15 July 2013.Microfinance 35% Innovation and research culture
8
5 “France sets up a state investment bank,” Europost website, “France eases labor costs via tax credits, VAT hike,” Reuters website, reuters.com, accessed 18 July 2013.Family and friends 35% Celebration of self-made wealth europost.bg, accessed 15 July 2013.
6 “France Commits To Tax Incentives To Boost Foreign Investment,” Tax-News website, tax-news.com, accessed
Angels 35% 9 “Labor tax and contributions (% of commercial profts),” The 15 July 2013. Entrepreneurship as a career choice
World Bank website, data.worldbank.org, accessed 15 July 2013.
Public aid 41%
Attitude to risk
Crowdfunding 57%
4 | The power of three The power of three | 5
Fear of failure
Entrepreneurship culture
0 2 4 6 8 10
France
G20 average
Time to start a business
140
120
100
Entrepreneurship culture 80
60
Innovation and research culture 40
G20 average
22
Celebration of self-made wealth 20
0
Entrepreneurship as a career choice
Attitude to risk
Fear of failure
0 2 4 6 8 10
*annotate 2010-2012 average
France
Mature G20 economies average
24%
Public spending on education and training as a % of GDP
7
6
G20 average
5 4.8
4
3
2
1
0
Equal weight scores
*annotate 2010-20012 average
8
7
6
5
4
3 Access to venture capital
2
5 1
0
4
G20 average
3.03
2
France
1
Mature G20 economies average
0
*annotate 2009-2011 average
Access to funding
Coordinated support
Tax and regulation
Education and
training
Entrepreneurship
culture
South Africa
US
UK
Indonesia
Saudi Arabia
Canada
South Korea
Japan
India
Turkey
Australia
Germany
Mexico
EU
Australia
Argentina
Canada
Brazil
Italy
Russia
Turkey
Italy
US
China
France
France
Mexico
South Korea
UK
EU
Indonesia
Germany
India
South Africa
Turkey
Saudi Arabia
Japan
Japan
China
Russia
Russia
Argentina
Italy
India
Germany
China
Australia
Argentina Indonesia
Canada
Italy Brazil
South Korea
South Korea
Mexico
Russia
US
Turkey
UK
Mexico
Brazil
Brazil
South Africa
Japan
EU
Germany
Saudi Arabia
South Africa
Argentina
France
France
EU
India
UK
China
Australia
Canada
Indonesia
Saudi Arabia
US
Number of days
% of GDP Taxes as a % of profitsThe French Government has
just announced a tax break of
€20b
for businesses
Crédit Impôt Recherche Credit mediation scheme
(Research Tax Credit)
France’s crcheme was
established to help entrepreneurial businesses The research tax credit provides corporate
deal with bank lending bottlenecks that tax relief for R&D expenses. It supports
emerged during the fnancial crisis. The companies’ R&D efforts and increases their
entrepreneurial business submits a fle to competitiveness by allowing a 30% deduction
the mediator online. The bank in question is on the frst €100m of R&D expenditure and
notifed and has fve days to reply. After a 5% thereafter. After its reinforcement in 2004,
further fve days, the mediator determines the number of businesses using the credit
how the matter should be resolved. By mid-has increased by 80% since 2008, to 18,000
2012, the mediator had dealt with 36,000 companies. The credit has generated total tax
fles, with mediation succeeding in 62% of savings for businesses of more than €5b.
these, leading to the release of €3.7b in
Launch date: 2004
lending.
Most relevant pillars: access to funding,
Launch date: 2008entrepreneurship culture
Most relevant pillar: access to funding
Key insight: France’s entrepreneurial environment
A Q&A with Jean-Luc Petithuguenin, Chairman and President, Groupe Paprec, France
Jean-Luc Petithuguenin runs one of France’s top independent What other implications does this hold for the entrepreneurial
recycling businesses, Paprec Recycling. He took over a small environment?
paper recycling company in the Paris region in 1995, after a The current rules make entrepreneurs less likely to sell their
career at French water utility Générale des Eaux, and turned companies, as they instead take a wait-and-see attitude, in case
it into a market leader. The company now has more than 50 the rules change or are reversed. It’s already happened, which
depots throughout France. in turn impacts the number of exits in the market, and also the
availability of investment for start-up businesses.
How have the incentives for entrepreneurs changed in recent
years? What do you see as the strongest aspects of the environment
for entrepreneurship in France today? The French Government recently introduced a new wealth tax,
which I think was a big mistake. It is meant to stop a culture of Overall, I think its fair to say that it’s a lot easier for
short-termism in business, but in fact it penalizes everyone who entrepreneurs to fnd investors for their business today than it
is creating wealth in the country, which many entrepreneurs was 20 years ago, and this has improved positively. Compared
are upset about. In fact, it’s driving many people to do business with then, you have so much more interest from business
outside of France, especially for those starting up new ventures; angels and other investors. As a director of a French bank, I can
they are looking at whether they should incorporate in also see this from that perspective too. Although there is less
Luxembourg or the UK instead, and perhaps only then setting money available from banks after the crash, if you have a good
up a subsidiary in France. business you can get money to help it grow.
4 | The power of three The power of three | 5Mature G20 economies average:
entrepreneurship culture
Overall score: France
Mature G20 economies average:
entrepreneurship culture
Overall score: France
Labour related taxes (% of profits) Regulation and culture scores
60
50
Entrepreneurship culture
pillar score
40
30 G20 average
23.9Regulation pillar score
20
10
0 1 2 3 4 5 6 7 8
0
France
Mature G20 countries
*annotate for 2012
Improved access to new funding sources Entrepreneurship culture
Microfinance 35% Innovation and research culture
Family and friends 35% Celebration of self-made wealth 75%
Angels 35%
Entrepreneurship as a career choice
Public aid 41% of French entrepreneurs
Attitude to risk
Crowdfunding 57% Access to funding say access to bank loans
Fear of failure
has deteriorated in the Pillar ranking: 16
Entrepreneurship culture last three years — more
0 2 4 6 8 10
than double the G20
France
G20 average average of 33%
Time to start a businessBank credit is tight, but a range of initiatives
140
should free up other sources of capital
120
100
Access to funding France G20 average Period
Entrepreneurship culture 80
60 IPO market activity
Innovation and research culture 40 IPO amount invested 0.03 G20 average 0.22 2009-11
22
Celebration of self-made wealth 20 (% of GDP) average
0
Entrepreneurship as a career choice Access to credit
Attitude to risk Domestic credit to private 111.5 99.0 2008-10
sector (% of GDP) average
Fear of failure
France’s level of IPO
Venture capital availability 3.0 3.0 2009-11 0 2 4 6 8 10
*annotate 2010-2012 average investment at 0.03% of GDP (Scale of 1=impossible to averageFrance
7=very easy)Mature G20 economies average is around a seventh of the
M&A deal value 2.5 3.4 2010-12 G20 average which stands at 24%
(% of GDP) average 0.22% (2009–11 average)
Sources: The World Bank, Dealogic, IMF, World Economic Forum
Public spending on education and training as a % of GDP Labour related taxes (% of profits) Regulation and culture scores
7
60Access to funding is a key challenge for French entrepreneurs, established funds — such as Isai, Jaina and Kima Ventures — to
6
with just 17% considering it easy to obtain. In addition, 75% of support entrepreneurial growth and innovation. The Government G20 average 505 4.8 Entrepreneurship culturelocal entrepreneurs surveyed said that access to bank loans has also announced the creation of a share savings plan (PEA-
pillar score4 40has been deteriorating, compared to just 5% who pointed to an PME) that will encourage private investment in entrepreneurial
3
improvement. businesses. Crowdfunding is also set to develop once a new 30
2 G20 average
legal framework has been put in place, and NYSE Euronext has 23.9Regulation pillar scoreAccording to the OECD, the proportion of authorized loans to 1 20announced the opening of a new entity, Enternext, dedicated to
entrepreneurial businesses that were actually drawn down by 0 small companies. 100 1 2 3 4 5 6 7 8businesses averaged 87% between 2007 and 2011, pointing to
tightness in the market for entrepreneurial business bank credit in A ranking by the World Economic Forum suggests that France is in 0
France
10France. Over the same period, the entrepreneurial business share line with the international average for access to venture capital.
Mature G20 countriesEqual weight scores of total business short-term loans dropped from 27.1% to 22%. However, the total volume of venture capital still hasn’t recovered
*annotate 2010-20012 average to pre-fnancial crisis levels.
8 Nevertheless, encouraging progress is being made on the ground.
7 A number of successful French entrepreneurs have recently
6
*annotate for 2012
5
4
Access to venture capital (1 = impossible, 7 = very easy) Proportion of entrepreneurs surveyed who noticed an
3 Access to venture capital
Entrepreneurship culture 2 Imprimpr ovoed acvemen cet in thess to nesw funding se funding ins our trumences ts
5
1
0
4 Microfinance Innovation and research culture35%
G20 average
3.0 Family and friends 35%3 Celebration of self-made wealth
Angels 35%2
Entrepreneurship as a career choice
Public aid 41%France
1
Mature G20 economies average Attitude to risk
Crowdfunding 57%
0
Fear of failure
Source: EY G20 Entrepreneurship Barometer 2013
Entrepreneurship culture
0 2 4 6 8 10
Source: The World Bank, 2009–11 average*annotate 2009-2011 average
France
10 G20 average Organisation for Economic Co-operation and Development, Financing SMEs and
Entrepreneurs 2012: An OECD Scoreboard (OECD Publishing, 2012).
Time to start a business
140
6 | The power of three The power of three | 7
120
100
Entrepreneurship culture 80
60
Innovation and research culture
40
G20 average
22
Celebration of self-made wealth 20
0
Entrepreneurship as a career choice
Attitude to risk
Fear of failure
0 2 4 6 8 10
*annotate 2010-2012 average
France
Mature G20 economies average
24%
Public spending on education and training as a % of GDP
7
6
G20 average
5 4.8
4
3
2
1
0
Equal weight scores
*annotate 2010-20012 average
8
7
6
5
4
3
Access to venture capital
2
5 1
0
4
G20 average
3.03
2
France
1
Mature G20 economies average
0
*annotate 2009-2011 average
Access to funding
Coordinated support
Tax and regulation
Education and
training
Entrepreneurship
culture
Access to funding
Coordinated support
Tax and regulation
Education and
training
Entrepreneurship
culture
South Africa
US
UK
Indonesia
Saudi Arabia
Canada
South Korea
Japan
India
Turkey
Australia
Germany
Mexico
EU
Australia
Argentina
Canada Brazil
Italy
Russia
Turkey
Italy
US
China
France
France
Mexico
South Korea
UK
EU
Indonesia
Germany
India
South Africa
Turkey
Saudi Arabia
Japan
Japan
China
Russia
Russia
Argentina
Italy
India
Germany
China
Australia
Argentina Indonesia
Canada
Italy Brazil
South Korea
South Korea
Mexico
Russia
US
Turkey
UK
Mexico
Brazil
Brazil
South Africa
Japan
EU
Germany
Saudi Arabia
South Africa
Argentina
France
France
EU
India
UK
China
Australia
Canada
Indonesia
Saudi Arabia
US
South Africa
US
UK
Indonesia
Saudi Arabia
Canada
South Korea
Japan
India
Turkey
Australia
Germany
Mexico
EU
Australia
Argentina
Canada
Brazil
Italy
Russia
Turkey Italy
US China
France France
Mexico
South Korea
UK
EU
Indonesia
Germany
India
South Africa
Turkey
Saudi Arabia
Japan
JapanChina
RussiaRussia
ArgentinaItaly
IndiaGermany
China
Australia
Argentina Indonesia
Canada
Italy Brazil
South Korea
South Korea
Mexico
Russia
US
Turkey UK
Mexico Brazil
Brazil South Africa
Japan EU
Germany Saudi Arabia
South Africa
Argentina
France
France
EU
India
UK
China
Australia
Canada
Indonesia
Saudi Arabia
US
Number of days
% of GDP Taxes as a % of profits
Number of days
% of GDP Taxes as a % of profitsMature G20 economies average:
entrepreneurship culture
Overall score: France
Mature G20 economies average:
entrepreneurship culture
Overall score: France
Only
22%
Entrepreneurship culture of French entrepreneurs
think that French culture Pillar ranking: 9
Labour related taxes (% of profits) Regulation and culture scores embraces entrepreneurs:
60the G20 average is over
502.5 times higher than this Entrepreneurship culture
pillar score at 57% 40Welcome progress on bolstering weak
cultural support for entrepreneurship 30 G20 average
23.9Regulation pillar score
20Entrepreneurship France G20 average Period
culture 100 1 2 3 4 5 6 7 8
R&D spending (% of GDP) 2.2 1.6 2007-09
0
France average
Mature G20 countries
Scientifc and technical 4.9 3.3 2007-09
journal articles (per average
10,000 people)
Cost of resolving 9.0 11.8 2010-12 *annotate for 2012
insolvency (% of estate) average
Source: The World Bank
Entrepreneurship cultureImproved access to new funding sources
France performs well on the innovation-related aspects of its France performs more strongly on its innovation culture. Perhaps
Microfinance Innovation and research culture35%
entrepreneurship culture, highlighting its strong potential, but the this is unsurprising in a country with a rich history of invention,
Family and friends 35% Celebration of self-made wealthperception of entrepreneurs on the ground is different. Just 22% from aspirin to the frst widely produced internal combustion
Labour related taxes (% of profits) Regulation and culture scores
of local entrepreneurs agree that the country has a culture that Angelsengine. The country’s spending on R35% &D is well above the G20
60 Entrepreneurship as a career choice
encourages entrepreneurship, compared to an average of 57% average at 2.2% of GDP. However, this is driven far more by the
Public aid 41%
50 across the G20. public sector. The private sector, meanwhile, has a better track- Attitude to riskEntrepreneurship culture Crowdfunding 57%
pillar score record of commercializing such efforts.
40 It is likely that the country’s high-tax backdrop accounts for much
Fear of failure
of this negative sentiment. Furthermore, France scores poorly As a result, there are concerns about the effciency of French
30 G20 averagein the Barometer in terms of encouraging positive attitudes investment in innovation. The number of researchers has Entrepreneurship culture23.9Regulation pillar score
20 towards risk. The country’s negative perception of business failure increased strongly over the past decade, closing a gap over
0 2 4 6 8 10
contributes to this strong risk aversion: 46% consider such a neighbors Germany. But the two countries’ innovation outputs,
100 1 2 3 4 5 6 7 8 France
failure to imply a career failure, more than twice the G20 average measured in terms of patent applications, remain far apart, with
G20 average0 of 21%. Nevertheless, measures are being taken to change this Germany way ahead.France
perception. For example, the “040” indicator, which singles out Mature G20 countries Time to start a business
failed businesses in the Bank of France fles, is being abolished,
140
as a positive step forward.
120
*annotate for 2012 100
Entrepreneurship culture 80Barometer scores for entrepreneurship culture components
Entrepreneurship cultureImproved access to new funding sources 60
At 2.2%, France’s spending on Innovation and research culture
40
Microfinance Innovation and research culture G20 average35% R&D as a percentage of GDP 22
Celebration of self-made wealth 20
Family and friends 35% is well above the G20 average Celebration of self-made wealth
0
Entrepreneurship as a career choice of 1.6% (2007–09 average)Angels 35%
Entrepreneurship as a career choice
Public aid 41% Attitude to risk
Attitude to risk
Crowdfunding 57%
Fear of failure
Fear of failure
0 2 4 6 8 10
*annotate 2010-2012 averageEntrepreneurship culture France
Mature G20 economies average0 2 4 6 8 10
Source: EY G20 Entrepreneurship Barometer 2013
France24%
G20 average
Time to start a business
Public spending on education and training as a % of GDP
140
6 | The power of three The power of three | 77
120
6
100 G20 average
5 4.8
Entrepreneurship culture 80
4
60
3Innovation and research culture
40
G20 average 222
Celebration of self-made wealth 20
1
0
Entrepreneurship as a career choice
0
Attitude to risk
Fear of failure
0 2 4 6 8 10 Equal weight scores
*annotate 2010-2012 average
France *annotate 2010-20012 average
Mature G20 economies average 8
7
24%
6
5
4
3Public spending on education and training as a % of GDP Access to venture capital
2
7 5 1
6 0
4G20 average
5 4.8
G20 average
4 3.03
3
2
2
France
11
Mature G20 economies average
0
0
Equal weight scores
*annotate 2010-20012 average
*annotate 2009-2011 average
8
7
6
5
4
3
Access to venture capital
2
5 1
0
4
G20 average
3.03
2
France
1
Mature G20 economies average
0
*annotate 2009-2011 average
Access to funding
Coordinated support
Tax and regulation
Education and
training
Access to funding
Entrepreneurship
culture
Coordinated support
Tax and regulation
Education and
training
Entrepreneurship
culture
South Africa
US
UK
Indonesia
Saudi Arabia
Canada
South Korea
Japan
India
Turkey
Australia
Germany
Mexico
EU
Australia Argentina
Canada Brazil
Italy
Russia
Turkey
Italy
US
China
France
France
Mexico
South Korea
UK
South Africa
EUIndonesia
US
GermanyIndia
UK
South Africa
Turkey
Indonesia
Saudi Arabia
Japan
Saudi Arabia
Japan
China
Canada
Russia
Russia
South Korea
Argentina
Italy
Japan
IndiaGermany
India
ChinaAustralia
Turkey
Argentina IndonesiaCanada
Aus aliatrItaly BrazilSouth Korea
GermanySouth Korea Mexico
MexicoRussia
US
EUTurkey
UK
Australia
ArgentinaMexico
Brazil
Canada
BrazilBrazil
South Africa
Italy RussiaJapan EU
Turkey ItalyGermany Saudi Arabia
US ChinaSouth Africa Argentina
France FranceFrance France
Mexico
EU
South KoreaIndia
UKUK
EUChina Indonesia
GermanyAustralia India
South AfricaCanada Turkey
Saudi ArabiaIndonesia Japan
JapanSaudi Arabia China
RussiaUS Russia
ArgentinaItaly
IndiaGermany
ChinaAustralia
Argentina IndonesiaCanada
Italy BrazilSouth Korea
South Korea
Mexico
Russia
US
Turkey
UK
Mexico
Brazil
Brazil
South Africa
Japan
EU
Germany Saudi Arabia
South Africa Argentina
France France
EU
India
UK
China
Australia
Canada
Indonesia
Saudi Arabia
US
Number of days
% of GDP Taxes as a % of profits
Number of days
% of GDP Taxes as a % of profitsMature G20 economies average:
entrepreneurship culture
Overall score: France
The total taxes payable
by French businesses
amount to around 66%
of profts, well above
the G20 average of 50% Tax and regulation
(2012)
Pillar ranking: 15
High taxes, particularly on labor, are the key obstacle
Tax and regulation France G20 Period
average
Ease of starting a business
Start-up procedures (number) 5.0 7.6 2010-12 average
Time to start a business (days) 7 22verage
Cost to starss (% of income per capita) 0.9 9.4 2010-12 average
Paid-in minimum capital to start a business (% of income per capita) 0.0 17.9average
Business regulations
Labour related taxes (% of profits) Regulation and culture scoresTime spent on tax issues (hours) 132 347 2010-12 average
60
Labor market rigidity
50
Entrepreneurship culture
pillar scoreCost of fring (weeks of wages) 32 50 2007-09 average40
30Labor and tax contributions (% of commercial profts) 51.7 24.0 2012G20 average
23.9Regulation pillar score
20Taxation
100 1 2 3 4 5 6 7 8
Total tax rate (taxes and mandatory contributions borne by the business expressed as 65.7 49.7 2012
0
France a share of commercial proft)
Mature G20 countries
Indirect tax rate (taxes collected by the company and remitted to the tax authorities) 19.6 14.2 2012
Source: The World Bank
*annotate for 2012
13Taxation is perhaps the most high profle weak point for business online. These businesses pay lower taxes and labor-
Entrepreneurship cultureImproved access to new funding sources
entrepreneurs in France. The tax rate held steady in France related charges. The system covers 900,000 people and half of all
Innovation and research culturebetween 2005 and 2012, while acr Microfinancoess the EU the a 35% verage rate new businesses take advantage of it.
fell from 50.3% to 43.4% over the same period. However, the new Family and friends 35% Celebration of self-made wealthDespite these worthwhile initiatives, it is clear that this is an area
government has made some recent moves towards lowering the Angels 35% where France needs to make improvements in its entrepreneurial Entrepreneurship as a career choice
tax burden for businesses, most notably through a ne 41%w tax credit Public aid environment. In this context, 51% of French entrepreneurs in the
Attitude to riskthat, in effect, reduces France’s very high rates of labor-related Crowdfunding 57% survey feel that having a direct say on regulatory issues would
11taxes. Fear of failurebe the best way of improving the regulatory environment in their
Entrepreneurship cultureMore positively, France scores particularly well in the Barometer country versus just 38% for the G20 overall.
0 2 4 6 8 10in terms of its innovation incentives, owing to its effcient research
tax credit. This provides tax relief of 30% on the frst €100m of France
G20 averagespending (rising to 50% in the frst year and 40% in the second Time taken to start a business
12 Time to start a businesswhen businesses make their frst claim).
140
Furthermore, starting a business in France is a quicker and cheaper
120
process than elsewhere in the G20. It takes 7 days, compared to
100
a G20 average of 22, and costs 0.9% of per capita income, just
Entrepreneurship culture 80
one-tenth of the 9% average. Bolstering this, the entrepreneurial
60
Innovation and research cultenurvire onment has also been improved by the introduction of the
40
G20 average“auto-entrepreneur” system, which allows people to register a new 22
Celebration of self-made wealth 20
0
Entrepreneurship as a career choice
11 “France eases labor costs via tax credits, VAT hike,” Reuters website, reuters.com,
accessed 18 July 2013.
Attitude to risk
12 “Tax System: Best Research Tax Credit in Europe,” Invest in France Agency website, invest-
Fear of failurin-fre ance.org, accessed 16 July 2013.
13 “After pigeons, “chicks” battle French entrepreneur rules,” Reuters website, reuters.com,
0 2 4 6 8 10 Source: The World Bank, 2010–12 averageaccessed 18 July 2013. *annotate 2010-2012 average
France
Mature G20 economies average
24%
8 | The power of three The power of three | 9
Public spending on education and training as a % of GDP
7
6
G20 average
5 4.8
4
3
2
1
0
Equal weight scores
*annotate 2010-20012 average
8
7
6
5
4
3
Access to venture capital
2
5 1
0
4
G20 average
3 3.0
2
France 1
Mature G20 economies average
0
*annotate 2009-2011 average
Access to funding
Coordinated support
Tax and regulation
Education and
training
Entrepreneurship
culture
South Africa
US
UK
Indonesia
Saudi Arabia
Canada
South Korea
Japan
India
Turkey
Australia
Germany
Mexico
EU
Australia
Argentina
Canada
Brazil
Italy
Russia
Turkey
Italy
US
China
France France
Mexico
South Korea
UK
EU
Indonesia
Germany
India
South Africa
Turkey
Saudi Arabia
Japan
Japan
China
Russia
Russia
Argentina
Italy
IndiaGermany
China
Australia
Argentina Indonesia
Canada
Italy Brazil
South Korea
South Korea
Mexico
Russia
US
Turkey
UK
Mexico
Brazil
Brazil South Africa
Japan
EU
Germany
Saudi Arabia
South Africa Argentina
France
France
EU
India
UK
China
Australia
Canada
Indonesia
Saudi Arabia
US
Number of days
% of GDP Taxes as a % of profitsMature G20 economies average:
entrepreneurship culture
Overall score: France
Labour related taxes (% of profits) Regulation and culture scores
60 62%
50
Entrepreneurship culture
pillar score
40 of French entrepreneurs
30Education and tr G20 averaainingge said entrepreneurship
23.9
Regulation pillar score
20 training in schools Pillar ranking: 1
100 1 2 3 4 5 6 7 8 and universities had
0France improved, compared with
Mature G20 countries 51% across the G20
France invests heavily in education and is working
*annotate for 2012to boost the teaching of entrepreneurship
Entrepreneurship cultureImproved access to new funding sources
Education and training France G20 average Period
Microfinance Innovation and research culture35% Public spending on education (% of GDP) 5.8 4.8 2008-10
averageFamily and friends 35%
Celebration of self-made wealth
Angels 35% Secondary school enrollment (total enrollment 112.8 95.0 2008-10
Entrepreneurship as a career choice
expressed as a percentage of the population of averagePublic aid 41%
Attitude to riskoffcial secondary education age)
Crowdfunding 57%
Fear of failureTertiary enrollment (total enrollment expressed 54.4 53.5 2008-10
as a percentage of the total population of the average
Entrepreneurship culture
fve-year age group following on from secondary
0 2 4 6 8 10school leaving)
FranceSource: The World Bank
G20 average
Time to start a business
France strongest overall performance in the Barometer is in In the survey, French entrepreneurs were positive about trends 140
education and training, where it ranked frst overall. Public in the provision of specifc entrepreneurship programs in schools 120
spending is well above average at 5.8% of GDP. At the tertiary and universities: 62% said they had improved over the past three 100
level, France is ahead of the OECD average for overall attainment, years, compared to a G20 average of 51%. The Government has
Entrepreneurship culture 80
but it lags behind slightly on PhDs and other advanced research announced new initiatives to boost the teaching of entrepreneurial
60
Innovation and research culture programs. The share of the workforce with a tertiary-level spirit in secondary schools and universities. It is also planning
40
G20 averagequalifcation has increased steadily over the past decade, as has to create a new “entrepreneur student” status — this will allow 22
Celebration of self-made wealth 20
14the proportion of people employed in research. students creating a business straight after graduation to keep
0
Entrepreneurship as a career choice various advantages associated with being a student.
Universities carry out an increasing share of French public
Attitude to risk
R&D. A recent overhaul of the public research system saw the
Fear of failure introduction of AERES, a new agency for higher education
150 2 4 6 8 10 and research evaluation. One of France’s key objectives is to
*annotate 2010-2012 average
France improve technology transfer in the university sector, so that public
Mature G20 economies average research leads to the creation of more start-ups and patents.
24%
Public spending on education (% of GDP)
Public spending on education and training as a % of GDP
7 The French Government spent
6 5.8% of GDP on education —
G20 average
5 4.8
well above the G20 average of
4
4.8% (2008–10 average); it is 3
2 also the highest in the G20
1
0
Equal weight scores
Source: The World Bank, 2010–12 average
*annotate 2010-20012 average
8
14 “Labor force with tertiary education (% of total),” The World Bank website, data.worldbank.org, accessed 15 July 2013.
7
15 6 “Organisation générale,” Agence d’évaluation de la recherche et de l’enseignement supérieur website, aeres-evaluation.fr,
5 accessed 10 July 2013.
4
3 Access to venture capital
2
5 1
8 | The power of three The power of three | 9
0
4
G20 average
3.03
2
France 1
Mature G20 economies average
0
*annotate 2009-2011 average
Access to funding
Coordinated support
Tax and regulation
Education and
training
Entrepreneurship
culture
South Africa
US
UK
Indonesia
Saudi Arabia
Canada
South Korea
Japan
India
Turkey
Australia
Germany
Mexico
EU
Australia
Argentina
Canada
Brazil
Italy
Russia
Turkey
Italy
US
China
France
France
Mexico
South Korea
UK
EU
Indonesia
Germany
India
South Africa
Turkey
Saudi Arabia
Japan
Japan
China
Russia
Russia
Argentina
Italy
India
Germany
China
Australia
Argentina Indonesia
Canada
Italy Brazil
South Korea
South Korea
Mexico
Russia
US
Turkey
UK
Mexico
Brazil
Brazil
South Africa
Japan
EU
Germany
Saudi Arabia
South Africa
Argentina
France
France
EU
India
UK
China
Australia
Canada
Indonesia
Saudi Arabia
US
Number of days
% of GDP Taxes as a % of profits65%
of entrepreneurs say
Coordinated support that access to business
incubators has improved Pillar ranking: 11
in the past three years,
compared to the G20
average of 50%
Business incubation is a strength and
progress is being made on mentoring
On coordinated support, France shows encouraging signs of
progress. About two-thirds (66%) of French entrepreneurs said
that access to incubators had improved over the past three years.
A total of 25% said they currently use business incubators or had
used them before, while 19% said they intended to use them.
Given the importance of business incubators for entrepreneurs,
this strong drive bodes well for improved support in the years
ahead.
Programs to boost teaming and mentoring were also highlighted
by French survey respondents as a key source of support. A
total of 61% of entrepreneurs said they had either used these
programs, or that they intended to. An even higher proportion
(78%) had used or will use entrepreneurial workshops and
support meetings. Furthermore, in 2013, the National Network
for Entrepreneurial Mentoring (IME France) was established to
encourage best practice in mentoring in France.
In other aspects of support, entrepreneurial clubs and
associations showed more improvement over the past three years
than any other form of business support. They are also the most
widely used by French entrepreneurs — 65% currently use them or
have used them before, and a further 24% intend to use them.
Of course, various areas hold greater room for improvement.
Corporate and non-governmental advisers are less commonly
used (selected by 37% of respondents), as are industry-specifc
training programs (32%), for example.
of respondents have used
or will use entrepreneurial
workshops and support 78%
meetings
10 | The power of three The power of three | 11