Trust in the government among SMEs increases slightly, but remains very low

Marked by a strong local presence, SME owners are generally positive about the economic and social dynamism of the region where they operate. However, in a still-sensitive economic environment, they are calling for greater simplification from public authorities.

For the first time since January 2024, there is renewed confidence in the executive.

While the beginning of 2025 is marked by a shifting economic and geopolitical context in France and across the Atlantic, the confidence of SME managers in the economic measures announced or implemented by Emmanuel Macron and his government is slightly improving, reaching a level of 26% in Q1 2025. A level that is still very low but which, for the first time since January 2024, is recording an increase (9 points more compared to Q4 2024). However, only 3% of business leaders say they have "complete confidence" (a stable score) while, in contrast, among managers declaring they have no confidence (74%), the majority have "no confidence at all" (51%, -9 points).

This overall confidence score nevertheless remains the second lowest score measured among SME managers since the start of the Macron presidency, at a level similar to that of Elisabeth Borne's government at its lowest in September 2023 (27%).

This persistent mistrust can be seen as the result of weariness or even concern among leaders regarding current political directions: despite the vote on the 2025 budget finally approved, the announced continuation of pension reform without the possibility of projecting specific measures or a clearly defined timetable, the gap between François Bayrou's speech – deemed unconvincing and fluctuating – and his perceived inaction confirm these trends.

A discreet improvement in the morale of leaders

The morale of bosses is also experiencing a boost, although it is still moderate: in fact, the level of pessimism regarding the general business climate stands at 78%, 7 points less compared to Q4 2024. This level climbs to 86% in VSEs in the hotel, health and social action sectors, followed closely by those in industry (79%) and personal services (78%).

The morale of bosses regarding their own business is also improving, with a level of optimism rising to 48% and returning to the level of Q1 2023.

A hiring outlook that remains sluggish

Although some indicators are showing improvement, the employment situation remains sluggish, with only 10% of business leaders surveyed reporting having hired or planning to hire staff by the end of March 2025. This score is back in line with the levels observed in April and June 2024. This indicator remains strongly linked to the size of the company: 20% of VSEs with 3 to 5 employees have hired or were planning to do so, while this score rises to 47% for VSEs with 10 to 19 employees.

In contrast, 7% of executives report having eliminated one or more positions during the first quarter of 2025. This score has stabilized since Q4 2024. A 3-point differential appears between hiring and job cuts. This dynamic in favor of hiring is a continuation of the latter's consistently positive trend since the barometer began, with the exception of Q4 2024.

Only 36% of VSEs report experiencing financial difficulties, a score down 10 points since Q4 2024 (46%).

Focus “The territorial anchoring of VSEs”

87% of managers believe that their company is well integrated into the local economic fabric

SME business leaders recognize and value the economic and social dynamism of their region, three-quarters of whom are from the region where they established their business (76%) and more than 7 out of 10 of whom indicate that they deliberately chose to develop their activity there (71%). More generally, the chosen nature of the region where their business is established concerns nearly 9 out of 10 bosses (88%), while a minority (12%) state that they would have preferred to establish themselves in another region.

A large majority of managers (87%, including 47% "yes, absolutely") consider that their company is well integrated into the local economic fabric. More than 7 out of 10 say that their company contributes to the economic and social dynamism of their region (75%, including 34% "yes, absolutely") and believe that their company is located in a dynamic region (73%, including 31% "yes, absolutely"). These perceptions are consistent with those observed among all French people, who tend to mostly recognize the dynamism of their region, including on the economic level.

Increased competition in the territories

Despite their company's strong local presence, SME bosses say they operate in a highly competitive environment: nearly 6 out of 10 (59%) rate competition as "strong" within their sector of activity, and among them, 17% rate it as "very strong." Forty-one percent believe competition is weak (41%) or nonexistent (31%).

For 76% of the executives surveyed, their core customer base is located at the local level, which naturally influences the competitive dimension mentioned above. In detail, 45% operate at the local level (municipality, urban area), 17% at the departmental level, and 14% at the regional level. Only 24% of them indicate having a core customer base located at the national level or higher (18% at the national level and 6% at the global level).

The important role of local authorities in economic attractiveness

Customers and suppliers are the winning duo of stakeholders with whom VSEs interact most on a daily basis. 89% of managers report interacting systematically or regularly with their customers (56% of whom "systematically"), while nearly two-thirds (64%) report interacting with their suppliers at the same frequency (27% of whom "systematically"). No significant difference was noted based on sector of activity or company size regarding customers. On the supplier side, however, it is construction (+13 points vs. the average) and hotel (+20 points vs. the average) managers who are most likely to interact systematically or regularly with them.

At the bottom of the ranking is the losing duo of professional associations (multi-professional) and Chambers of Commerce and Industry, with which less than one in ten bosses say they interact frequently (10% and 9% of managers respectively).

Despite very limited interactions with the municipality and other local authorities, 60% of managers recognize the effectiveness of their actions in promoting the economic life of the municipality where their company is located, including 10% who consider it "very effective." A similar dynamic is noted for promoting the economic life of the area where their structure is located, where 6 out of 10 bosses recognize the role of other local authorities and 4% of whom consider them "very effective."

Overall, employers have a favorable perception of local authorities and their actions to support economic activity within the territories: nearly two-thirds of them see local authorities as playing a real facilitating role in the development of their activity (64%).

Small businesses are calling for public authorities to strengthen their systems

As debates continue on the simplification bill, business leaders are expecting a strengthening of the measures put in place by the public authorities. More than a quarter of these leaders have identified three possible actions to implement at the local level: first and foremost, the creation of a one-stop shop for public services for businesses (29% of them, 17% of whom cite it first), followed closely by assistance with administrative procedures (28%) and training to develop the skills of managers or entrepreneurs in the business creation phase (24%).

Methodology of the study: Sample of 1.002 managers of small businesses with 0 to 19 employees, including self-employed entrepreneurs, based on the criteria of the company's sector of activity, company size, and region of operation. Sample interviewed by telephone from March 24 to April 9, 2025. Companies with annual revenues of less than €50.000 were not interviewed as part of this study.

Illustrative image of the article via Depositphotos.com.