Small business owners worried and angry about political instability

A majority of them, who no longer trust the executive, must already anticipate the consequences of the current political situation on their business: hiring freeze, suspension of the payment of their own salaries... A worrying situation while the VSEs are nevertheless showing a certain resilience in a fragile economic context.

Worried and angry, small business owners are struggling in the face of political instability

While the confidence of SME leaders in the executive continues to decline, their concern about political instability is growing.

When asked about their main feeling towards France at the moment, 8 out of 10 business leaders expressed a negative feeling, with worry appearing first for a majority of them (55%), followed by anger (25%). Conversely, only a minority expressed a positive feeling (14%). This feeling of negativity is even more pronounced in certain sectors of activity such as industry and construction, where more than 4 out of 10 business leaders expressed anger (respectively 16 points and 15 points higher than the average).

While just over a third of the business leaders surveyed (out of 61% of the sample[1]) were satisfied with the appointment of Sébastien Lecornu as Prime Minister (36%), the prevailing pessimism regarding the current climate in France was reinforced following his resignation on October 6. The negative feelings expressed are greater (85% compared to 77% before October 6) and the feeling of anger more prevalent (32% from October 6 compared to 21% before this date).

Freezing hiring or stopping paying themselves: SME bosses anticipate negative repercussions

Faced with this unprecedented situation, SME bosses are forced to anticipate the negative impacts of the current political climate.

The majority of them anticipate strong negative repercussions within 6 months, first on their sector of activity (53%, including 20% ​​"very strong"), then on the activity of their partners and/or investors (51% including 17% "very strong") and on their own activity as well as that of their suppliers and/or subcontractors (50% both including 16% "very strong").

More concretely, these repercussions could result in trade-offs in the direct management of their business and its development: 67% of managers say that the current political situation could encourage them to reduce their investments. This rate reaches 84% ​​for construction industry bosses.

At the same time, many (56%) also mentioned reducing their workforce or freezing hiring (among business leaders with at least one employee). This figure rises to 66% for construction industry executives.

Finally, some would consider reducing their pay, or even stopping paying themselves a salary altogether (49%). This figure rises to 64% for bosses in the hospitality sector, followed closely by those in personal services (63%) and those in the health and social work sector (60%).

Great uncertainty that does not alleviate the economic and budgetary concerns of business leaders

This climate of great uncertainty does not alleviate the economic and budgetary concerns of SME managers. The three priorities identified by SME bosses (out of 61% of the sample) are: health (cited by 38%), reducing deficits and public debt (cited by 35%), and the issue of purchasing power through the fight against rising prices, raising wages, and controlling tax levels (also cited by 35%). This comes ahead of education and training, security, business support, and employment and national defense.

Furthermore, nearly 6 out of 10 business leaders believe that efforts must be made to reduce France's public debt (58%). In detail, this is more the case for bosses in the business services sector (70%, 12 points higher than the average) and in health and social services (73%, 15 points higher than the average).

In an attempt to reduce the French public debt, and among the various stakeholders presented, 41% of business leaders believe that it is primarily the 1% of the French population with the highest level of income or wealth that should contribute financially. They are closely followed by 37% of business leaders who believe that all taxpayers should contribute according to their level of income and/or wealth, or even equally regardless of their level of income and/or wealth for 30% of them. Working people, businesses, and retirees are thus only mentioned marginally (from 6% to 14%).

Finally, 38% of SME bosses simply believe that no one should contribute specifically to the reduction of public debt, since it does not constitute "the problem of the French".

A widespread weariness with the usual political figures

When asked about the desire for the appointment of a new Prime Minister, the majority of SME bosses (39% of the sample[2]) expressed the desire to see a Prime Minister appointed from the civilian ranks (54%). This reflects the widespread weariness with the usual political figures, regardless of party.

This resentment towards the presidential camp translates, for nearly half of business leaders, into the desire for a dissolution of the National Assembly in the coming months and the organization of new legislative elections (47%, including 27% who "absolutely" want this). This desire has also been reinforced following the resignation of Prime Minister Sébastien Lecornu on October 6, who has now reached the majority (54%, including 33% "yes, absolutely").

Along the same lines, nearly two-thirds of the business leaders surveyed agree with the idea that, in the event of the dissolution of the National Assembly and the absence of an absolute majority in the subsequent legislative elections, Emmanuel Macron should resign from his position as President of the Republic (64%).

Asked about their voting intentions in the legislative elections in the event of the dissolution of the National Assembly, employers would place – in percentage of votes cast – a candidate from the National Rally or the Union of the Right for the Republic (UDR) of Eric Ciotti (29%) or a candidate from the Republicans (16%).

Crisis of confidence among SME bosses in the government

The growing concern of SME leaders about political instability is naturally reflected in their level of trust in the government, which continues to decline. Only 12% of SME bosses indicate confidence in the economic measures announced or implemented by Emmanuel Macron's government: a level 7 points lower than last quarter and, more importantly, the lowest level observed during Emmanuel Macron's two five-year terms. This is also the lowest level of trust observed since the creation of this barometer in 2002, similar to that of François Hollande and Bernard Cazeneuve's government at the end of 2016.

Alongside this decline in confidence, the morale of SME bosses is also shaken. The level of pessimism regarding the general business climate stands at 83%, a 3-point increase compared to the second quarter of 2025. This level climbs to 91% in SME manufacturing, followed by those in construction (90%) and commerce (89%).

The morale of bosses regarding their own activity is naturally also weakened with a level of optimism which stands at 46%, or 5 points less than in the second quarter of 2025. Bosses in the health and social action sector are those who are the most pessimistic (+7 points compared to the average).

Small businesses demonstrate resilience: hiring dynamics are slightly on the rise again

In parallel with this weariness with politics, VSEs are holding their own. The share of VSEs experiencing financial difficulties stands at 38%, a rate that remains constant compared to the second quarter of 2025 (39%), although this is still the highest level observed since June 2023, with the exception of the last quarter of 2024 (record level at 46%).

Employment is another indicator of the resilience of VSEs: 13% of VSE managers report having hired or planning to hire staff by the end of September 2025, i.e. 5 points more than in the second quarter of 2025. This is the highest level observed since the beginning of 2025, but remains below that observed in the third quarter of 2024 (19%).

However, the current level of net job creation for a third quarter has been exceeded only twice since 2001, the year the barometer was created (+7 points difference in 2002, +5 points in 2006), and equaled only once, last year.

This indicator remains strongly linked to the size of the company: 18% of VSEs with 1 to 2 employees have hired or were considering doing so, while this score rises to 31% for VSEs with 3 to 5 employees, 40% for those with 6 to 9 employees and up to 54% for VSEs with 10 to 19 employees.

In contrast, 9% of VSEs report having eliminated or planning to eliminate one or more positions during the third quarter of 2025 (i.e. 3 points more than in the second quarter of 2025) but which again remains below the job eliminations carried out or planned during the third quarter of 2024 (15%).

A 4-point differential is observed between hiring and job cuts, in favor of hiring. A systematically positive trend in this differential, with the exception of the last quarter of 2024.

A notable gap appears between the perceptions of SME managers and the current economic reality. In fact, their assessment of the general business climate in France and of their own activity deteriorates throughout 2025 – and this is likely in response to an increasingly deteriorating political context that is worrying from their point of view – while indicators relating to employment and insolvencies prove less alarming.

[1] Business leaders surveyed from September 22 to October 5, the period covering Sébastien Lecornu's first appointment as Prime Minister.

[2] Business leaders interviewed from October 6, the date of Sébastien Lecornu's resignation as Prime Minister and before his second appointment.

Illustrative image of the article via Depositphotos.com.