Schrijf je in voor onze dagelijkse nieuwsbrief om al het laatste nieuws direct per e-mail te ontvangen!

Inschrijven Ik ben al ingeschreven

Sign up for our daily Newsletter and stay up to date with all the latest news!

Subscribe I am already a subscriber

Unfavourable economic conditions impacted the performance of French small businesses

According to the FCGA, the unfavourable economic conditions of 2023 inevitably impacted the performance of small businesses. However, they still managed to maintain a +1.5% activity rate, significantly lower though compared to the +6.6% of 2022.


On April 23, the FCGA and Banque Populaire presented their 'Observatory of Small Businesses', an exclusive survey dedicated to the highlights and low points of small businesses in crafts, commerce, and services in 2023; which was a particularly chaotic year marked by inflation and a sharp slowdown in activity.

Data from this year show the French economy as faltering, with GDP barely reaching 0.9% (compared to +2.5% in 2022). All other indicators measured by INSEE confirm this general regression: household consumption is declining (+0.7%, compared to +2.1% the previous year), business investment is retracting (+1.2%, compared to +2.3%), and the number of new wage jobs created stagnates at 150,000 (+0.6%) compared to +349,000 a year earlier. Unfavourable economic conditions inevitably impact the performance of small businesses. However, they still manage to maintain a +1.5% activity rate, significantly lower though compared to the +6.6% of 2022.

According to the FCGA, three major lessons can be drawn from this ranking:

The first: Of the twelve sectors studied, three show a clear increase in turnover, namely vehicle sales and repair (+4.4%, after +1.4% in 2022), retail food trade (+4.3%, after -1.5%), and household equipment (+0.6%, after -1.6%).

Second lesson: Activity is significantly declining in the other nine sectors, although five of them still show positive rates. Apart from the ongoing normalization in the hospitality industry (which returns to a more ordinary activity rate: +6.2%, after +28.5%), the other four 'positive' sectors are actually... decreasing: transportation (+0.6%, after +7%), personal equipment (+0.9%, compared to +6.9%), beauty and aesthetics (+2.3%, compared to +2.7%), and parks & gardens (+2.8%, compared to +4.4%).

Third lesson: The retail food trade is regaining momentum. With a turnover increase of 4.3% (after -1.5% in 2022), the sector is back on the growth path. Although a 'price effect' related to inflation cannot be excluded, consumers seem to be returning to their local food suppliers. A phenomenon that reappears with every crisis.


Publication date: