With a high level of pessimism, 53% of SME managers anticipate a stagnation of their business in 2026.

As the 2026 municipal elections approach, small business owners are generally satisfied with the Mayor and the municipal teams. While they feel that the concerns of small businesses are being better addressed by the municipality, they still consider it insufficient. Business owners express strong expectations regarding local taxes, the safety of people and property, and employment and economic development.

A persistent distrust of the executive branch accompanied by a pervasive pessimism

The political instability that marked 2025 has had significant consequences. The climate of trust remains fragile: a majority of small business leaders (87%) indicate a lack of confidence in the economic measures announced or implemented by Emmanuel Macron and his government (-13 points compared to Q1 2025). This is also the lowest level of confidence observed over his two presidential terms, after the third quarter of 2025 (12%).

This lack of confidence is once again reflected in the outlook of business leaders: 84% of them are pessimistic about the overall business climate in France. The level of pessimism regarding their own business remains stable compared to the previous quarter (54%), the highest level recorded in 2025.

Only 22% of business leaders expect their activity to grow in 2026.

More than 4 out of 10 bosses (41%) report experiencing financial difficulties (+3 points vs. Q3 2025).

On the issue of employment, only 8% of managers of very small businesses reported having hired or planning to hire staff by the end of December 2025. A similar score to the same period a year earlier.

Conversely, 6% of very small businesses reported having eliminated or planning to eliminate one or more positions during the fourth quarter of 2025.

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.

For 2026, small business owners anticipate a mixed outlook for their activity, with less optimism than in the same period of the previous two years. Only 22% of them expect their business to grow, a decrease of 3 percentage points compared to 2024 regarding 2025, and 8 percentage points compared to 2023 regarding 2024.

However, stagnation is anticipated by more than half (53%) of bosses, an increase of 8 points compared to the last quarter of 2024. They are also less likely to foresee a decline in their activity (25% vs. 30% in Q4 2024).

Focus on 'Municipal Elections 2026'

Located at the heart of their communities, the owners of very small businesses are generally satisfied with the work of the municipal authorities.

62% of SME managers reside in the municipality where their company is located, thus demonstrating a strong territorial connection.

More than 6 out of 10 business owners (62%) are satisfied with how the town where they are based has developed since their arrival. An equal number (61%) are satisfied with the current mayor and, more broadly, with the municipal team in their town, and consider themselves to have good relationships with these teams. Although still in the majority, the overall level of satisfaction with the mayor and municipal teams, two months before the March election, is down 9 points compared to January 2014.

A majority of small business owners view positively the work done by the municipality of the town where their company is located with regard to different aspects of urban policy: economic development, more services offered, quality of life...

The size of the municipality plays a fundamental role in the appreciation of its elected officials: the smaller the municipality, the greater the proximity, and the more the work done by the municipality is noticed and is likely to generate satisfaction.

Employers located in rural municipalities (less than 2.000 inhabitants) are notably more likely to express their satisfaction with the development of the municipality (72% in rural municipalities vs. 62% on average) but also with the mayor and the current municipal team (72% vs. 59% on average).

The municipality is taking the concerns of very small businesses into account more effectively, but this is still insufficient.

The majority of business leaders surveyed (55%) believe that the concerns of very small businesses are not taken into account by the municipality of their local area.

Among the primary sources of dissatisfaction cited by these business owners are the level of local taxes borne by companies located there (56% vs. 66% in 2013), followed by the lack of business promotion (47% vs. 66% in 2013) and, to a lesser extent, parking difficulties (37%). However, across all the business owners surveyed, 45% believe that the municipality takes their concerns into account: an indicator that has risen by 11 points compared to October 2013, highlighting the progress made in this area by the municipal teams. Owners in the hotel (62%) and healthcare and social services (59%) sectors are particularly satisfied with this level of attention.

Although satisfied with the work of the municipal teams, the leaders of TPE also demonstrate increased demands on local political staff, not escaping a structural tendency of disinterest and weariness towards them.

In addition to the good relationships they maintain with elected officials (for the majority), business leaders are satisfied with the frequency of these interactions (45%) and feel supported in their business (40%). They also value the importance of the municipal policies in the development of their businesses (34%).

However, only 27% of business leaders foresee the upcoming municipal elections as likely to impact their company's operations. This indicator reveals a certain skepticism regarding the power of local elected officials to influence economic activity. Although these figures represent a minority, they reaffirm a form of established and enduring popularity for local political figures, unlike national political figures, towards whom business leaders are more critical.

Increased demands regarding quality of life and local security

A majority of bosses (55%) believe that the commitments made by the municipality at the time of its election in 2020 have been mostly kept, a score down sharply (-19 points) compared to January 2014 (74%).

30% claim unfulfilled commitments and 15% have no opinion on the matter (+11 pts vs January 2014).

This latest trend may confirm the hypothesis of a certain disinterest in local public life or a lack of involvement on the part of some leaders. Construction bosses are more likely to cite broken promises (42%), while industrial and hospitality bosses, conversely, are more satisfied (both 64%).

When asked about the areas in which the municipality should act as a priority in their municipality of establishment, the bosses of very small businesses overwhelmingly cite employment and economic development as their top priority (78% vs. 86% in October 2013).

But the heads of very small businesses share other priorities related to the local community environment, quality of life, and public services. For example, the safety of property and people ranks as the second priority (75%) and education as the third priority (74%).

Faced with these various questions, and despite a certain lack of awareness or even disinterest in the actions undertaken by the municipality, more than 7 out of 10 business owners say they are certain to vote in the municipal elections on March 15 and 22 (71%). This figure represents a 7-point increase compared to January 2014 (64%). Construction business owners are the least likely to express their firm intention to vote (11 points lower than the average), while those in business services and in health and social services are among the most likely (10 and 15 points higher, respectively, than the average).

When asked about the key issues in the 2026 municipal elections, small business owners cited taxation and local taxes as their top priority (44% vs. 48% in January 2014), followed by the safety of property and people. The latter now appears to be a major concern for them (35%, +7 points vs. January 2014), even surpassing employment and economic development (30%, -22 points vs. January 2014).

The upheaval observed in the hierarchy of these three main determining issues of the vote underlines the importance for the years to come of maintaining the purchasing power of bosses at the local level, and of guaranteeing a more serene living environment.

Study methodology

A sample of 1.016 managers of very small businesses (0 to 19 employees), including self-employed individuals, was selected based on the company's sector of activity, size, and region of location. The sample was interviewed by telephone between December 8, 2025, and January 2, 2026. Companies with an annual turnover of less than €50.000 were not included in this study.

Illustrative image of the article via Depositphotos.com.