Despite a gloomy economic situation, these French SMEs which are resisting bankruptcy
In the Osmosun workshops, fifteen minutes from Chartres (Eure-et-Loir), the specter of social plans that threaten France does not darken the serene atmosphere. The autumn sun bathes the shed whose windows overlook the Beauceron fields. The sound of water sings in the background. “It’s the sea of Chartres,” laughs Maxime Therrillion, development director. Three workers are working to build seawater desalination units for Djibouti, Polynesia and Morocco. Large tanks contain the liquid used to test the machines. Maxime Therrillion bends down and points to one. “The salt water enters through this pipe, is put under pressure and then compressed against a membrane. Fresh water comes out here,” he explains. The system combines solar energy with the osmosis process, through which the transformation takes place. A winning bet: between 2019 and 2022, the company experienced average annual growth of around 120%. Could she be the exception that proves the rule? In France, in the last twelve months, 66,000 companies have gone bankrupt, a record in recent years.
Innovation and export
Sluggish turnover, struggling cash flow, emptying order books… 2024 appears to be a complicated year for the French economy. Nearly 2,400 positions will be eliminated at Auchan; Michelin has announced the closure of two of its sites, and equipment manufacturer Valeo is threatening to cut 1,000 jobs in the region. “There will be other site closures in the weeks and months to come,” acknowledged Marc Ferracci, the Minister for Industry. The poor health of small and medium-sized businesses is particularly worrying. Faced with the “whatever the cost” end of the health crisis, they are faltering. Kept alive by special loans issued during Covid-19, they are struggling to repay. At the same time, their expenses and charges are increasing due to the rising cost of energy and raw materials. And with the purchasing power of the French at half mast, demand is falling. Entrepreneurs are reluctant to invest, discouraged by political instability and high interest rates.
However, many French SMEs are doing well, particularly in the fields of energy, sustainable development and new technologies. Following the example of Osmosun, which has focused on innovation in these key sectors. The system developed by the company allowed it to position itself in a “niche” and “find its market”. The effort does not stop there. “We must continue research to always improve, because the competition is tough,” recalls Maxime Therrillion. The Public Investment Bank, which supports SMEs, underlines this: innovation and export are winning strategies, regardless of the sector. But implementing them requires planning into the future. “Studies show that the SMEs that are doing the best have invested massively in skills, digital tools, research and development,” says Sandrine Kergroach, OECD economist. Getting in tune with digital and social networks is also one of the keys to success. This implies communicating via new technologies, but also offering digital solutions, such as online sales, essential since the confinements. SMEs must adapt to new consumption habits. A bookseller who wants to survive Amazon is forced to develop a platform on the Internet. “Restaurants that offer meal delivery are more successful. Today, it is no longer enough to fill the terrace, because people consume less,” argues Thierry Millon, director of studies for the Altares firm.
Adaptability
Finally, without support, it is “mission impossible”, in the words of Osmosun’s development director. In these troubled economic times, the support usually provided by banks and public authorities is even more essential to maintaining the economic fabric of the country. However, for the moment, political uncertainty dominates. The National Assembly is divided on the vote on the budget and Michel Barnier’s government plans to bail out the public deficit by making savings on aid to businesses, in particular exemptions from charges, the research tax credit and aid when hiring work-study students. The efforts required worry the bosses. In this turbulent economic landscape, SMEs nevertheless retain great advantages. “Thanks to their size, small businesses have the ability to adapt very quickly, a necessity today,” assures Thierry Millon with optimism.
