SMEs plan less investments in 2024, according to a study

Only one in two SMEs intends to invest in their production tools in 2024, according to the latest barometer from Bpifrance Le Lab, carried out with the Rexecode economic institute. This is a decline of five points compared to 2023. For companies that plan to release funds, budgets are revised slightly upwards, but the overall dynamic has been broken since the end of last year.

The causes are multiple. Firstly, the uncertainties about the evolution of the international context. A third of the SME bosses surveyed think that demand will not increase. Second topic: interest rates. Still too high in their eyes to take out loans and invest. The cost of credit remains too high and the responsible business manager does not want to take risks. Once again: these are SMEs and not large groups which generally have more freedom with greater financial resources. However, the main entrepreneurial fabric in France is made up of SMEs.

A little more than half of the SME bosses surveyed by Bpifrance Le Lab and Rexecode (52% precisely) plan to restart the investment pump, or even accelerate it, over the next five years. For what ? Because they consider the decarbonization of their activity and the digital transition to be essential. SMEs also want to use artificial intelligence to develop their business.

In reality, there are two triggers: confidence and stability. Confidence in the return of a buoyant economy. Difficult to engage in the international geopolitical fog. The stability of economic and monetary policy with a call for a long-term industrial and fiscal strategy and not a short-sighted one based on electoral deadlines. Finally, a message sent to the banks so that they release the credit. Everyone is faced with their responsibilities.