the bosses of VSEs and SMEs become optimistic again for their 2023 results

This optimism emerges from the latest quarterly barometer carried out by Bpifrance Le Lab (the public investment bank) and the economic institute Rexecode. The survey was carried out in mid-April among 550 managers of VSEs and SMEs in the non-agricultural market sector (business services, distribution, manufactured goods excluding agri-food in particular).

In concrete terms, six out of ten VSE/SME managers expect their company’s net margin to increase or, at least, to be maintained throughout the year. The net margin is the final profit divided by the turnover, that is to say that all the expenses and the cost of the products are accounted for. This indicator gives the color of the company’s profitability.

Companies in the non-agricultural sector are therefore less affected than others by inflation. The rise in prices does not seem to have a negative impact as in the food industry, for example. In addition, logistical problems are being resolved. Rupture of supply chains, poor supply of certain parts… Problems persist but there is a clear improvement which is helping the resumption of activity.

Employment and wages

The positive is more on the side of remuneration than employment as such. We keep repeating it: companies are still struggling to recruit people who are properly trained to meet their labor needs.

On the salary side, on the other hand, 78% of the bosses of VSEs and SMEs questioned by Bpifrance Le Lab and Rexecode plan to increase salaries this year. VSEs and SMEs play the game, unlike some multinationals pointed out. These small companies intend to take advantage of the return of margins to play on remuneration. They are more likely to consider it today than in February, for example. It is therefore a recent and new indicator, linked to investments which should also be there.