200,000 businesses on average are started every year in France and approximately 50 per cent of them fail or change their proprietor or legal status during the critical first five years. The failure rate is a high proportion of this percentage. Motivation is certainly not lacking as 300,000 salaried positions annually in the job market are not filled. Choosing to work for yourself, rather than having to, is the main motivation. INSEE (the national institute for statistics and economic research) reveals that almost 60 per cent of unemployed people who start their own business already had this in mind when they were still in salaried employment. Around a third of new businesses are created by the unemployed.

Getting market research, finance, advice, short- and medium-term business development plans, administrative details and suitable initial legal structure for the business right are essential. All these elements are or can be different in France. The first part of this book covers these themes. Despite the easier administrative path created by Dutreuil’s law in 2003, starting a business in France certainly remains more difficult than in the UK. The capitalist economy is still heavily influenced and regulated by the state. English-speaking entrepreneurs with previous experience of starting and running a business in more liberal markets relatively free from state controls may find the French system frustrating. But they will have the risk-taking edge over French entrepreneurs starting up for the first time and who have no business experience outside of France. Anglophones moving to France to start a business are more adaptable, and more prepared to do something completely different than their French counterparts moving to the UK. Motivations are not the same. France’s way of life is the real attraction for Anglophones, not money. While the UK’s attractions for high-flying young French executives are better career and financial prospects. Different professional, commercial and customer attitudes, a different language and a different accounting system (unless your business graduates to the stock market where the International Accounting Standards Board system – mainly based on the American and British systems – is de rigueur) will need to be understood. Nationals from all European Union countries and Monaco are automatically entitled, provided they have elected residence in France or qualify for residence in Monaco, to start a business in France. The French residence card (carte de séjour) for EU members issued by the service administration Etrangers office of the national police confirms this entitlement ‘toutes activités professionnelles en vertu du règlement 1612.68’.

Equally important, especially for people who have never run their own business before, is organising their personal life for optimum family support, especially in the early start-up period, and protecting their personal estate against liability if the enterprise fails. Not everyone, even with the best advice money can buy and the best idea on the market, has the all-round qualities required to be a successful businessperson.

This book not only covers how to start a business, but also deals with the all-important prior questions of why, what, where and when. These four questions all require satisfactory answers before deciding to take the first practical step, a detailed market research report, when recourse to employing professional researchers may be appropriate. The three chapters in the second part of the book look at day-to-day basics to ensure the business’ survival: organising and maintaining the accounts correctly, creating time to plan and see through the development of the business, keeping customers and attracting new ones, and taking on staff.

Reference is made throughout to private and state organisations and associations to contact for low-interest-rate loans, business development awards and advice (which is sometimes offered free from working or retired company directors). Some associations and organisations are national and others only exist in certain regions or départements. As well as immediate reference to relevant websites in the text a selection of appropriate websites is sometimes included at the end of each topic or chapter.

Taking the time to read Starting a Business in France will not guarantee success, but it will give step-by-step guidelines and useful tips which will help you avoid making any disastrous decisions and save time and money. The book is designed so that key information can be quickly and easily referenced.

I would particularly like to thank Sarah and Ian Smith of The Connexion newspaper, Nicholas Hill of Real Land and Adrian Byrnes of Charpentiers Réunis Mediterranée who told me how they started their businesses, and also Pierre Bernois of DTZ Jean Thouard and Madame Barthel of the Centre d’Affaires des Playes who helped me with information for the chapter on Premises.