Business creation twice as fast as average in the craft sector and a new annual record

Craftsmanship is proving to be a true safe haven for entrepreneurship, as the growth in new businesses is twice as fast in this sector as nationally (+11% year-on-year vs. +6% on average). While all sectors and regions are benefiting from this positive trend, disparities still persist.

This momentum should not obscure concerns about the future of businesses that may soon be up for sale. While only one in ten new businesses results from a transfer of ownership, it is estimated that 72.000 craft businesses will be available for sale within the next five years. In this context, the barometer identifies the sectors most vulnerable to potential sales.

The number of creations is at a historic level. An increase twice as high as the national average.

The craft sector, which has surpassed 250.000 new creations for the past two years, is set to have a record year in 2024 with nearly 280.000 new craft businesses created. With a rapid increase of 11% year-on-year, the sector is driving the overall growth in new business creation, which is increasing by an average of 6%.

By the end of 2024, one in four businesses created will be in the craft sector.

This dynamic is all the more positive as it is also marked among companies providing employment (+12% among SA, SARL, SAS) as for individual companies (+11%).

For Anne-Sophie Prissé, Marketing and Communications Director at MAAF: “This new ISM-MAAF barometer confirms the trend observed since 2022: the craft sector remains highly attractive and inspires new vocations every year. This trend is accompanied by an unprecedented increase in business creation, which generates jobs. This momentum should not obscure the sectoral and territorial disparities, nor the worrying signs regarding the transfer of craft businesses, which are still very much in the minority. In an uncertain economic climate, the transfer of these businesses is essential to preserving thousands of jobs and unique expertise, a major issue for the stability of local areas.”

An increase in creation across all sectors, but disparities persist

After a 2023 marked by a wait-and-see approach and even a decline in creations in most sectors, the 2024 results are trending upwards in all sectors.

This trend was particularly pronounced in service activities (+17%) and food crafts (+14%). Growth was more moderate in manufacturing (+9%) and construction (+4%). Nevertheless, both sectors posted significant increases compared to 2023.

The top 3 activities with the highest number of creations are: building cleaning (45.480 installations; +20%), ride-hailing taxis (18.540; +20%) and beauty treatments (17.890; +17%).

Among the activities with the highest growth rates of creations*, we observe landscaping (+23%) in construction, biscuit manufacturing (+49%) in food, printing (+42%) in manufacturing crafts and ambulances (+46%) in services.

The growth is also remarkable in bakeries and pastry shops (+33%) and butcher shops (+27%). In the manufacturing sector, the creative industries (textiles, woodworking, costume jewelry) also remain very dynamic.

Across the country, all regions are part of this positive dynamic.

This growth dynamic is present across all regions.

We even observe rates above 15%, particularly in the densest economic areas: Île-de-France (+15%), Auvergne-Rhône-Alpes (+18%) and in the Greater West.

This trend is all the more remarkable when compared to the rates recorded a year earlier. In the Auvergne-Rhône-Alpes region, the rate jumped from -8% in 2023 to +18% in 2024. The Pays de la Loire region also experienced one of the strongest increases, rising from -7% in 2023 to +16% by the end of 2024.

It should be noted, however, that the increase is more moderate in Bourgogne-Franche-Comté (+5%) and in Corsica (+7%).

By launching their new business, 1 in 2 entrepreneurs changed professions

Entrepreneurship in the craft sector is often the result of a career change project. When starting their business in 2022, nearly one in two entrepreneurs (48%) indicated that they had moved towards an activity different from their main profession.

These entrepreneurial career changes are particularly frequent in manufacturing crafts (69%) and services (61%), while they remain limited in construction (25%).

Less than 1 in 10 new businesses opens as a result of a business takeover or transfer.

Among the new companies created, it is estimated that only 8% were the result of the purchase or takeover of an existing company (INSEE/SINE survey 2022).

Business takeovers remain very rare, with the exception of certain food-related businesses (bakeries, restaurants) where they account for 19% of new businesses. Takeovers offer the advantage of acquiring good locations, equipment, and an existing customer base.

Within 5 years, 72.000 small businesses could be sold.

Craft businesses structured as companies and employing staff are the most likely to be transferred. It is estimated that among them, 72.000 have a manager over 60 years old (representing 6% of craft businesses) and could be sold within the next five years. These businesses alone account for 200.000 jobs.

The transfer of these businesses is a central issue for the stability of the economic fabric in the region and for the preservation of skills, particularly in manufacturing crafts (11% of managers are over 60 years old and employees in these sectors often possess rare and sought-after know-how).

In terms of the number of companies, the sectors that will potentially be most affected by retirements are food market trading, general masonry, industrial mechanics and automotive repair.

For Catherine Elie, Director of ISM studies: “Today, it is estimated that around 72.000 small businesses will be available for takeover within the next five years, representing 200.000 jobs. Business succession at the end of one's career is easier to prepare for when it is planned in advance. However, many business owners prepare too little or too late, hoping instead for a takeover within their network (family, employees, acquaintances, etc.), and unfortunately reducing the opportunities for succession. In some niche sectors, business owners often struggle to find a qualified buyer and must broaden their search. When a workshop closes, sometimes rare skills are lost with it. We also know that one in two businesses will not be passed on... There is therefore a real need to support those who wish to become entrepreneurs and embark on a business takeover.”

Study methodology

The Crafts Barometer is produced by the Institut Supérieur des Métiers with the support of MAAF. Published four times a year, this barometer highlights the major trends in the evolution of the crafts sector in its various economic and social components (characteristics of managers, businesses, and jobs, according to sectors and regions).

Sources: the barometer data comes from the processing and exploitation, by the ISM, of national data files from INSEE and publications from BODACC A (sales and transfers).

*Among the activities that concentrate more than 1.000 creations of craft businesses.

Illustrative image of the article via Depositphotos.com.