Become independant! The paradoxical constraints of France's 'Auto-Entrepreneur' Regime

Nadine Levratto () and Evelyne Serverin ()
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Nadine Levratto: EconomiX - EconomiX - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique
Evelyne Serverin: CTAD - Centre de Théorie et Analyse du Droit - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique

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Abstract: The Law on Economic Modernization of 4 August 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 (Section 1), concerning the availability of sufficient financing and material to provide professional services; managerial (Section 2), which measures the ability to assume the risks inherent to business, regarding both interested and third parties; and financial (Section 3), or the chances of earning enough money to subsist upon. The result, highlighted in the conclusion to this article, 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.

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Date: 2014
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Published in Journal of Small Business Management, 2014, 53, pp.284-301

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-01664367

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