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Become Independent! The Paradoxical Constraints of France’s Auto-Entrepreneur Regime

Author

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  • Nadine Levratto
  • Evelyne Serverin

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 the 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, underscored in the conclusion to this article, is that the auto-entrepreneur regime appears best adapted as a means of supplementing income from another, unrelated activity or in retirement, which is contrary to every approach to business and enterprise.

Suggested Citation

  • Nadine Levratto & Evelyne Serverin, 2011. "Become Independent! The Paradoxical Constraints of France’s Auto-Entrepreneur Regime," EconomiX Working Papers 2011-6, University of Paris Nanterre, EconomiX.
    • Handle: RePEc:drm:wpaper:2011-6
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    File URL: http://economix.fr/pdf/dt/2011/WP_EcoX_2011-06.pdf
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    Cited by:

    1. Dominique Méda, 2017. "The Future of work: The meaning and value of work in Europe," Working Papers hal-01616579, HAL.

    More about this item

    Keywords

    auto-entrepreneur; theory of the firm; combining activities; employment contract; entrepreneurship;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • K22 - Law and Economics - - Regulation and Business Law - - - Business and Securities Law

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