In the context of the economic slowdown, payment incidents and company failures increased. Bank liabilities continued to rise, but less sharply than in 2007.

SMEs in the manufacturing sector in France have an adequate level of capital and reserves and a relatively small amount of debt. Trade accounts receivable and payable are greater than in German SMMEs and their profitability remained below that of their German counterparts.

The new definition of enterprises and their size, with the introduction of mid-tier companies, has brought to light three very distinct populations. Mid-tier and large enterprises continue to borrow and invest, unlike small and medium-sized enterprises (SMEs), which are nevertheless the most...

Given that the economic rebound recorded in 2004 did not carry on in 2005, the performance of industrial firms levelled off; nevertheless, cash flows were under control and balance sheets remained healthy.

In 2006, industrial activity accelerated, sustained by SMEs, whose debt ratios were reduced while those of large firms increased. Holding companies now bear over one-third of manufacturing groups’ bank loans.

Inflows of foreign direct investment (FDI) in France are affected by economic fluctuations, resulting in large variations from one year to the next. Inward FDI flows from emerging countries are still minor. However, a new geographical breakdown shows that French groups account for a significant...

The difficult business environment that prevailed in 2012 adversely affected small and medium-sized enterprises (SMEs) in France and above all weighed on their profits. SMEs nonetheless maintained a sound capital structure and reduced their debt ratios, even though many of them were weakened by...

In 2012, disparities were observed among the financial positions of French firms. Activity slowed down, profits fell and the rise in equity was smaller than in 2011. Nevertheless, firms’ financial structures improved and their cash position reached a 15-year high.

Since 2012, the Banque de France has conducted a new survey on access to bank loans /credit for industrial and service sector SMEs and MTEs. Firms appear to have reduced their demand for bank financing although the supply has not contracted.

Companies in France benefited from the economic recovery in 2010 and generated higher profit levels. But this improvement did not offset the declines of the two previous years and significant disparities persist.