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

Author

Listed:
  • 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)

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.

Suggested Citation

  • Nadine Levratto & Evelyne Serverin, 2014. "Become independant! The paradoxical constraints of France's 'Auto-Entrepreneur' Regime," Post-Print hal-01664367, HAL.
  • Handle: RePEc:hal:journl:hal-01664367
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