Microentrepreneurs: support measures deemed inadequate by the UAE

According to François Hurel, President of the Union des auto-entrepreneurs, self-employed workers, including microentrepreneurs, are not receiving the support they need as the crisis draws to a close.

Microentrepreneurs weakened by the health crisis

France currently has 2.4 million microentrepreneurs (formerly auto-entrepreneurs), compared with 1.6 million in March 2020. Of these, 35% live exclusively from their microenterprise.

Of all microentrepreneurs, those who have seen their business restart following successive confinements and waves of epidemics have not recovered all their pre-crisis revenues, but only 40% on average.

In addition, many have had to take on debt to temporarily overcome difficulties, and now find themselves facing the risk of personal bankruptcy coupled with the risk of liquidation of their micro-business.

However, according to François Hurel, President of the Union des auto-entrepreneurs (UAE), the measures put in place by the French government to support businesses are not adapted to microentrepreneurs.

Microentrepreneurs only pay social security contributions when they declare sales. When sales are nil, as was the case for many microentrepreneurs at the height of the crisis, the absence of social security charges renders the measures for exemption, deferral and repayment schedules irrelevant.

A plan to protect the self-employed expected in July

TheUnion des auto-entrepreneurs (UAE) is proposing a series of measures to help microentrepreneurs get back on their feet.

On average, microentrepreneurs record annual sales of 18,000 euros. For only 30% of them, annual sales reach 35,000 euros. According to the UAE, a monthly grant of 500 to 600 euros for 6 months would enable most of them to exceed 40% of their sales.

This aid could take the form of training, digitization assistance and other services designed to accelerate the development of their business. The UAE is also calling for creditor actions to be suspended for 6 months, and believes that 1% of the total €100 billion stimulus package should be earmarked for microentrepreneurs.

In July, Alain Griset, the French Minister for SMEs, is due to present a plan to improve social protection for the self-employed. Perhaps this will be an opportunity to address the question of support measures for microentrepreneurs after 15 months of health crisis.