Young companies are more resilient

Publicityspot_img

79% of companies and individual businesses (hors microentreprises) created in 2018 in Reunion Island were still active in 2021, three years after their creation, according to the recurring INSEE study.

The three-year sustainability rate increases significantly compared to that of companies created in 2014 (68 %) and converges towards the national level. Corporations now form a much larger share of businesses created (60% compared to only 38% of those of the previous generation, created in 2014). Creations in the form of individual businesses have decreased as a result of the broadening of the conditions of access to the microentrepreneur regime. However, companies are significantly more durable than traditional individual businesses..
On the other hand, the sustainability of individual businesses increases by 10 points, going from 55% to 65%, thanks in particular to the aid measures put in place to support businesses during the health crisis in 2020. Three quarters of individual businesses have benefited. In addition, 2018 creators are more experienced, including more creators who were previously employees of a company. They are also more qualified, which promotes greater sustainability of the businesses created.
However, the question of the viability of these companies in the longer term arises : they created fewer jobs than the previous generation, and two thirds have seen their turnover drop since the start of the health crisis. In 2025, INSEE will publish the results from the last survey of these companies created in 2018, five years after their creation.

All the news from commerce and mass distribution in Reunion
I subscribe to the newsletter

LEAVE A REPLY

Please enter your comment!
Please enter your name here


- Publicity -spot_img

last articles

Publicityspot_img