The investment intentions of managers of SMEs and microenterprises (MPEs) have recovered, according to a quarterly barometer published on Wednesday by Bpifrance, but these companies are experiencing strong upward pressure on wages.
A clear majority (56%) of SME/VSE heads intend to invest or have already invested in 2023, compared to 49% during the previous barometer in October. The amounts invested, projected or realized, however, remain “significantly below the average observed before the health crisis,” says the public bank.
If access to credit for investment projects tightens, Bpifrance stresses, the conditions for access to credit in cash, that is to say in the short term, remain favorable despite the rise in interest rates.
The cash position of SMEs/VSE, very good after the health crisis, has deteriorated somewhat and is below its historical average, according to the results of the barometer carried out with the Reexecode institute and based on nearly 600 responses from leaders provided between January 30 and February 8.
Despite this fragility, almost three-quarters (72%) of SME and VSE heads plan to increase their headcount in 2023 (i.e. 8 percentage points more compared to October), bringing more to the table than anticipated previously: an increase of 3.5%. on average is expected.
Managers plan to increase wages and sales prices
In 2022, managers say they have increased their employees by an average of 3.9%. To finance the salary increases in 2023, sales prices should rise even more, SME/VSE entrepreneurs foresee: 4.3%, compared to the 3.8% forecast in October for the year 2022.
“We have a double skid, both in wages and prices,” according to Philippe Mutricy, director of studies at Bpifrance. The upward pressure on wages is related to hiring difficulties, he points out. These are always the first obstacle to business growth.
Other most cited obstacles: excessively high costs and degraded demand prospects. Supply difficulties continue to affect more than seven out of ten companies.
Finally, three-quarters of companies expect to see an increase in the price of electricity this year. For 42% of them, the increase will be limited to 15%, and most VSEs will be covered by the rate shield. But 8% expect their electricity bill to skyrocket by more than 100%.
Source: BFM TV
