Nadine Levratto is CNRS Senior Research at EconomiX (University of Paris Ouest, Nanterre, La Défense), Affiliated Professor at Kedge Business School and Associate Researcher at the Centre d'Etudes de l'Emploi.
Become Independent! The Paradoxical Constraints of France's “Auto-Entrepreneur” Regime
Article first published online: 16 SEP 2013
© 2013 International Council for Small Business
Journal of Small Business Management
How to Cite
Levratto, N. and Serverin, E. (2013), Become Independent! The Paradoxical Constraints of France's “Auto-Entrepreneur” Regime. Journal of Small Business Management. doi: 10.1111/jsbm.12064
The authors thank Wayne Drexler, the Editor and two anonymous referees of this journal for helpful comments on an earlier version of this paper. We are solely responsible for the contents of the paper.
- Article first published online: 16 SEP 2013
The Law on Economic Modernization of August 4, 2008, introduced a new form of individual entrepreneur, the “auto-entrepreneur,” the goal being to enhance the competitiveness of the French economy by promoting entrepreneurial spirit. This paper proposes to discuss the “auto-entrepreneur” model with reference to the fundamentals of the theory of the firm and the legal variants of the “auto-entrepreneur.” The argument will be structured around the criterion of independence, and its various interpretations, which will be used to put the auto-entrepreneur model to the test. Three forms of autonomy are given precedence: productive, concerning the availability of sufficient financing and material to provide professional services; managerial, which measures the ability to assume the risks inherent to business, regarding both interested and third parties; and financial, or the chances of earning enough money to subsist upon. The result, highlighted in the conclusion to this paper, is that the “auto-entrepreneur” regime is contrary to every referenced approach to the firm. This business model appears best adapted as a means of supplementing income from another, unrelated activity or in retirement.