A historic record: 61.459 business owners lost their jobs in 2025, 25% of them in the construction sector.

A very high level, but nevertheless a trend that is slowing down after three years of strong growth.

After three years of continuous increases (+34% in 2022, +33% in 2023, +18% in 2024), the job loss rate among entrepreneurs finally appears to be stabilizing. However, this represents a historically high plateau since 2015, the year the Observatory was established. For the second consecutive year, more than 60.000 business leaders are affected.

For Hervé Kermarrec, president of the GSC association: “This apparent stabilization should in no way reassure us: we remain at an unprecedented level of entrepreneurial job losses. The economic context remains severely deteriorated, marked by sluggish growth, persistent geopolitical tensions, and lasting political instability. Business leaders are navigating blindly, in a climate of uncertainty that is hindering investment and weakening even the strongest companies. Faced with this growing precariousness, our message remains the same: it is essential to anticipate risks and to raise awareness of existing support mechanisms. The year 2026 promises to be pivotal. Initial indicators remain mixed, and nothing suggests rapid improvement on the economic and political fronts. For entrepreneurs, the priorities remain clear: closely monitor their cash flow, manage their risks, and, above all, do not face difficulties alone.”

Contrasting situations depending on the sector

The construction sector alone accounts for more than a quarter (25,2%) of all court-ordered liquidations in 2025 (14.485). After several years of sharp decline, this represents a slight improvement (-3,0%), although the situation remains fragile, particularly for construction companies. Meanwhile, real estate companies – hard hit by the post-COVID slowdown in the property market – are expected to see a marked decrease in business liquidations in 2025 (-19,1%).

In the retail sector, there are also some signs of improvement, particularly in food and beverage businesses. However, the situation remains precarious in the automotive industry, both for sales and repairs, which accounts for the highest number of bankruptcies (2.666). Conversely, in the clothing retail sector, the trend is more favorable (-9,0%), after having suffered heavy losses in recent years.

The situation in the accommodation, food service, and beverage sector remains unfavorable, with a 7,6% increase, affecting 7.982 businesses. Restaurants are the hardest hit, accounting for more than eight out of ten liquidations in the sector (6,559; +8,6%).

Business services remain under pressure (+7,1%; 7.853). These activities, dependent on the financial health of their clients, could suffer a domino effect if the economic situation does not improve.

The situation in industry (+1,3%), in line with the general trend (+1,0%), ultimately appears less alarming than anticipated, despite concerns about significant difficulties for these sectors. Specifically, the metallurgy industry saw a decrease in bankruptcies (-4,9%). Conversely, activities related to the environment and energy (recycling, waste treatment, etc.) were severely impacted (+27,3%).

Road freight transport, for its part, is holding up (-4,5%), both for local and long-distance freight. However, traditional taxis remain vulnerable due to increased competition and the decline in medical transport, which was a significant source of business.

At the same time, difficulties persist in activities geared towards individuals, particularly for hairdressing and beauty treatments – which constitute almost three-quarters of business liquidations in the sector – which combine high fixed costs and increased competition from home-based providers.

A population of concerned leaders that is getting slightly younger

The median age of entrepreneurs who lost their jobs is decreasing slightly, from 46,3 years in 2024 to 45,8 years in 2025. This trend is explained in particular by the sharp increase in the number of managers under 26 years of age impacted (+27,8%).

The 41-50 age group remains the hardest hit, with 16.271 job losses, representing more than a quarter of the total. Many in this category held leadership positions in companies that had been in operation for over 10 years, demonstrating that seniority no longer offers protection: even well-established businesses can falter in the face of an unfavorable economic climate.

Conversely, entrepreneurs over 50 seem to be weathering the storm better, with a 4,6% decrease in job losses. This trend may reflect a generational effect: a smaller presence of senior executives still active or greater resilience linked to experience and well-established structures.

Very small businesses: a persistent structural vulnerability

More than 8 out of 10 affected entrepreneurs ran businesses with fewer than 5 employees (50.451). These very small businesses bear the brunt of the difficulties: lack of cash flow, vulnerability to non-payment, and market upheavals. They lack both the financial flexibility and the staff to absorb shocks. In 2025, the situation remains particularly strained: business activity remains insufficient, and revenue levels are not always enough to cover fixed costs.

Conversely, managers of companies with more than 50 employees saw their job losses decrease (-4,2%). Larger SMEs, often older and better capitalized, are more resilient to economic fluctuations. Being more structured, these companies appear better equipped to face difficulties, an observation consistent with the greater resilience of senior managers, who are more often at the helm of older and more established companies.

The situation is deteriorating in companies with more than 10 million in revenue, with an 11,2% increase in job losses after a particularly favorable year in 2024 (down 26% vs 2023).

Territories with varying impacts

The Île-de-France region still accounts for a significant share of entrepreneurial job losses, with 14.319 business leaders affected (+0,6%). As the country's leading economic region, it is directly impacted by the tensions observed at the national level.

Auvergne-Rhône-Alpes, despite a near stabilization (-0,1%), is the second most impacted region with 7.354 entrepreneurs having found themselves "unemployed" in 2025.

The Nouvelle-Aquitaine region saw a marked increase of 10,8% (5.724 entrepreneurs). This growth is largely due to a timing effect: many business closures announced in 2024 were finalized in 2025. Furthermore, the size of the region and the diversity of its economic fabric contribute to concentrating difficulties across several sectors.

Four other territories show an increase above the national average: Corsica (+7,4%; 393), Grand Est (+3,1%; 4.339), Pays de la Loire (+2,8%; 2.639) and Occitanie (+1,2%; 5.565).

Conversely, Provence-Alpes-Côte d'Azur shows the sharpest decline in 2025, with a drop of 6,9% (5.813 entrepreneurs). It is ahead of Bourgogne-Franche-Comté (-3,1%; 2.010) and Brittany (-2,7%; 2.241).

Finally, 4.542 business leaders lost their jobs in Hauts-de-France (-2,2%). There are 2.476 in Normandy (-2,3%) and 1.985 in Centre-Val de Loire (-0,5%).

For Thierry Millon, Director of Altares Studies: “The last five years of persistent economic instability have finally exhausted the moral and financial resources of many business leaders. In 2025, nearly 61.500 entrepreneurs had to liquidate their companies, an unprecedented level. And the start of 2026 offers little respite: 6.400 bankruptcies were recorded in January alone, yet another record. Leaders of very small businesses are particularly vulnerable. It's a financial, professional, and personal shock from which no one emerges unscathed, especially since attitudes toward entrepreneurial failure are changing slowly. Yet, the right to a second chance is a crucial issue, both human and economic. Helping entrepreneurs bounce back means enabling their experience to be used to boost the dynamism of sectors and regions, thereby strengthening overall economic vitality.”

Methodology

The data comes from the analysis of companies, excluding civil companies and associations, placed directly, by conversion or by resolution of the plan in compulsory liquidation by the Commercial or Judicial Court. The procedures for amicable closure or dissolution, as well as the dismissal of corporate officers, are not included.

Illustrative image of the article via Depositphotos.com.