Inflation: French SMEs forced to increase their prices or reduce their margins

Rise in raw materials, packaging, logistics and energy: French SMEs have to make tough decisions to stay afloat.

As confirmed by a European study* carried out by SumUp, 39% of these companies have increased or will increase their selling price. A high figure but nevertheless lower than that of some of our neighbors since it amounts to 52.1% in Germany and 44.1% in Switzerland. In addition, 32.3% of SMEs say that they have reduced or will reduce their margin.

Still, 47.4% of French SMEs expect a decrease in turnover compared to the previous year during the holiday season. At the European level, the United Kingdom (58.2%) and Germany (52.8%) are the most pessimistic in light of these weak growth forecasts.

The government is not doing enough

Another essential decision: energy sobriety. 29.4% of French SMEs will try to reduce this cost. Let us remember that the government has called on companies in the country to reduce their consumption by 10%.

But the bosses believe that the government is not doing enough. Despite the tariff shield for some or the new aid system for others, 68% feel that the Government is not taking concrete and effective measures to help them cope with the current economic situation. This perception is even more shared in Germany (84%).

This pressure also has consequences for business investment. According to a recent study by Bpifrance and the Rexecode Institute, fewer than one in two SMEs (49%) now intend to invest, compared to 55% six months ago. In question, a degraded cash flow.

Yet despite all these headwinds, optimism prevails. Only 9.1% of French SMEs plan to close due to the crisis according to the SumUp study.

*: The survey was carried out among European SMEs from November 2 to 9, 2022, through a self-administered online questionnaire. It was carried out with a sample of 3,488 people from 5 countries (United Kingdom (890), France (730), Italy (1,404), Germany (333) and Switzerland (131).