Is entrepreneurial culture really more developed elsewhere than in France?
Entrepreneurship is a key driver of a healthy and prosperous society. It is also a powerful driver of economic growth.
Karim Messeghem, University of Montpellier; Frank Lasch, Montpellier Business School and Justine Valette, University of Montpellier
It fosters the innovation needed not only to exploit new opportunities, promote productivity, and create jobs, but also to address some of society's greatest challenges, such as the United Nations Sustainable Development Goals (SDGs).
Promoting entrepreneurship is therefore a key concern for many governments around the world. In France, the number of new businesses created has reached new records, with nearly one million new businesses in 2021, although this figure should be put into perspective given the proportion of micro-entrepreneurship and platform-based entrepreneurship. Is this a reflection of an entrepreneurial culture that has developed and taken root in recent years? And how does France compare to other countries in terms of its relationship with entrepreneurship?
To answer these questions, in 2021 we conducted two studies for the Global Entrepreneurship Monitor (GEM) as part of the LabEx Entreprendre program at the University of Montpellier: the first focuses on entrepreneurial activity and was conducted among the French population aged 18 to 64 (APS Study); the second focused on the national entrepreneurial ecosystem and was conducted among a panel of experts (NES Study). These two studies were replicated in other countries by national teams affiliated with GEM, allowing for international comparison.
France in the middle of the pack
The study conducted among experts shows, in particular, that among the G7 countries, there is a certain similarity in the perception of the entrepreneurial ecosystem, which is seen as generally favorable. Only the United States (5.3/10) stands out slightly. There is a strong similarity between countries such as Germany, Canada, and France (5.1/10), where conditions are perceived as fairly favorable overall. However, these conditions are perceived as less favorable in Italy and Japan (4.7/10).
Among the 19 richest countries participating in the GEM, France stands out in terms of government policies (4th/19). The efforts made at the national and regional levels over the past 20 years to promote entrepreneurship have therefore been recognized and have contributed to the emergence of a particularly dynamic entrepreneurial support ecosystem.
However, France still lags behind in terms of cultural and social norms (18th/19) and entrepreneurial education at primary and secondary school level (17th/19). The entrepreneurial revolution does not yet seem to be having a full impact on society, and efforts are still needed to spread an entrepreneurial culture. Similarly, market access appears to be a weak point (17th/19) in the French entrepreneurial ecosystem, which undermines the development of emerging businesses.
Positive representation
The value placed on entrepreneurial activity in a country, and therefore the importance of entrepreneurial culture, can be assessed using four indicators. These indicators assess whether entrepreneurship is perceived as a desirable career choice, whether it confers high social status, whether it is valued in the media, and finally, whether it is easy to start a business in France. This is what we did in our survey of the general population.
When comparing France to other G7 economies, it again ranks in the middle. For just over two-thirds of French people surveyed, entrepreneurship is a desirable career choice. However, only a slight majority (55.4%) consider it to be a high social status today.
This positive representation is a sign of the evolution of entrepreneurial culture. The latter is influenced by the media, which contribute to spreading a more or less favorable image of entrepreneurship. The vast majority of French people feel that, whether in the media or on the Internet, stories of successful new businesses are highlighted (Figure 8).
One example is the program "Qui veut être mon associé" (Who wants to be my partner?) on M6, which features entrepreneurs seeking funding. This reality TV show, which has been running for around 20 years in other countries, was broadcast in France for the first time in 2021 and is helping to democratize entrepreneurship and the issue of fundraising.
Beyond perceived desirability, the issue of perceived feasibility is important. Depending on the country and the period, perceived barriers related to the ease of registration and the weight of bureaucracy can hinder entrepreneurial intent and behavior. A small majority consider that it is easy to start a business in France (Figure 9).
For the past twenty years, public authorities have been adopting measures to simplify the process of setting up a business. This perception varies greatly from one country to another: the United States, Canada, and the United Kingdom stand out as countries where it is considered easy to start a business, in contrast to Japan, Italy, and Germany.
"Earning a living"
However, according to our study, the strongest motivation for entrepreneurs is to "earn a living because jobs are scarce" (51.2%). This result suggests that the majority of them embark on the entrepreneurial adventure out of necessity. This score is higher in Canada (70.7%), Italy (61.3%), and the United Kingdom (63.8%). However, it is lower in the United States (45.8%), Germany (40.9%), and Japan (40.1%).
Entrepreneurs are less interested in pursuing an entrepreneurial career in order to "build great wealth or earn a very high income" (39.4%). The other two motivations concern only a quarter to a fifth of entrepreneurs. Only 25.8% of entrepreneurs surveyed cited a desire to make a difference in the world as their motivation for starting a business, whereas in the United States (71.2%) and Canada (70.4%), the proportions are much higher. The same is true of the motivation to "perpetuate a family tradition," which concerns only 22.9% of entrepreneurs in France, compared to 41.5% in the United States and 50% in Canada.
The study therefore confirms the idea that France is becoming an entrepreneurial society. However, entrepreneurial culture does not seem to permeate the whole of society. Action is still needed to remove certain obstacles. As the panel of experts points out, France lags behind other wealthy countries in terms of entrepreneurial education at primary and secondary school level.
A conference on entrepreneurial education at primary and secondary school level could, for example, provide a better understanding of best practices in France and abroad, and help to develop a strategy tailored to a variety of contexts.
Karim Messeghem, University Professor, University of Montpellier; Frank Lasch, Full Professor in Entrepreneurship, Montpellier Business School and Justine Valette, Senior Lecturer in Management Sciences, University of Montpellier
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