According to Herve Novelli, secretary of state to small businesses, about 40% of auto-entrepreneurs registered since January 2009 have a quarterly turnover of 4000€, or 1333€ per month. Which leaves us with 60% with a turnover nearing zero or too small to represent a main source of income. Is that so surprising? Not really!
The auto-entrepreneur scheme has indeed made it easier for would be entrepreneurs to register their business and to assess their social charges. But a business remains a business, unless you have a clear view of who your customers are, how you are going to find them, what you are going to sell to them and at what price, you are going to struggle. I have come across quite a few French auto-entrepreneurs, who have registered their business, placed an advert in the local newspaper then wondered why nobody called them.
The auto-entrepreneur is a great system for first time entrepreneurs, but there is no need to hurry. Carry your market research, assess your competitors, do your marketing homework, assess how much money is required to launch and run your business, do a bit of pre-prospection, then register your business.
About 242 000 people have registered as auto-entrepreneurs. They can’t all be wrong, but I wouldn’t be surprised if they realised that starting a business meant more hard work than they thought.