What is the financial position of French SMEs and ISEs following the 2022-2025 interest rate cycle?
Bulletin No. 265, article 3. This study draws on 1.5 million 2025 tax returns to shed light on the financial position of French small and medium sized enterprises (SMEs) and intermediate sized enterprises (ISEs). The fundamentals of SMEs and ISEs remained robust at the end of 2025 – despite positions varying widely at an individual level – notably with high profit shares, well controlled debt levels and continued strong cash positions. However, SME and ISE activity grew slowly for the second year running, and their repayment capacity, based on Banque de France ratings, deteriorated. Furthermore, the interest rates actually incurred by firms on their overall outstanding debt adjusted more slowly for SMEs than for ISEs, with the result that the apparent cost of debt of SMEs continued to rise slightly in 2025 on average, while that of ISEs fell sharply.
This bulletin draws on data from the Banque de France’s FIBEN company database to present an analysis of the financial position of small and medium sized enterprises (SMEs) and intermediate sized enterprises (ISEs) in 2025. The scope of the study covers SMEs and ISEs with a head office registered in France, subject to corporate tax, and not operating in the financial sector.
The study bases its analysis on the 2025 annual financial statements of 1.5 million legal units, grouped into 1.3 million firms as defined by the French Law on the Modernisation of the Economy (LME). Within the category of SMEs, and in line with the LME classification, micro enterprises are separated out from other SMEs. In total, the study sample covers approximately 90% of the workforce of French SMEs and ISEs and 85% of the value added they produce.
1. Activity grew slowly in 2025 but the profit share continued to hold up
Growth in business activity remained significantly below its long term average
For the second year running, the turnover growth rates of SMEs (excluding micro enterprises) and ISEs were significantly below their long term averages. The turnover of SMEs (excluding micro enterprises) rose by only 1.5% in 2025, following 1.8% in 2024, compared with an average of 4.2% over the 1997 2019 period. The turnover of ISEs rose by only 1.2% in 2025, following 0.8% in 2024, compared with an average of 3.6% over the 1997 2019 period (see Chart 1a). Nevertheless, as in previous years, the turnover growth of micro enterprises was more dynamic, at 3.4% in 2025, following 2.9% in 2024.
In 2025, the slowdown in turnover growth hampered growth in value added, which was consequently well below its long term average, both for SMEs excluding micro enterprises (2.1% in 2025 compared with an average of 4.0% from 1997 to 2019) and for ISEs (2.6% compared with 3.2%). Again, however, as with turnover, growth in value added was more dynamic for micro enterprises, at 3.5% in 2025 (see Chart 1b).
Growth in business activity in 2025, measured in terms of turnover or value added, was below or equal to its long term average in all the major sectors of the economy.
However, the profit share continued to hold up
The profit share, defined as the ratio of gross operating surplus (GOS) to value added, reflects the proportion of a firm’s value added that remains after payment of personnel costs and production taxes. It continued to hold up in 2025 and increased compared with 2024 for all firm sizes (see Chart 2). …
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Updated on the 27th of August 2026