The number of business bankruptcies in France is increasing sharply, and VSEs are particularly affected. This phenomenon does not only concern large companies, but a large number of small structures which have not been able to cope with recent economic difficulties.
- Record increase in VSE bankruptcies in 2024, with nearly 66,000 companies affected.
- The majority of bankruptcies affect small structures with fewer than 10 employees, in various economic sectors.
- Insufficient crisis management and weak expectations among managers partly explain this wave of liquidations.
According to data from the Altares firm, nearly 66,000 business bankruptcies are expected this year. This figure represents an unprecedented number in the recent economic history of France. Among these companies in liquidation, 90% are VSEs, often made up of fewer than 10 employees. This phenomenon affects a multitude of sectors: textiles, construction, automobiles, but also personal services, such as private security or the social sector. These VSEs are for the most part solid companies, but their crisis management has often been insufficient to overcome current economic challenges.
Crisis management, a major weak point for many VSEs
According to Marc Sanchez, president of the Union of Independents, many small businesses, although deemed viable, failed to anticipate financial difficulties. The lack of rapid reaction to the first signs of fragility is a recurring problem. “ The leaders tell themselves that things will be fine, that they will bounce back “, he explains, “ but they do not dare to ask for help, for fear of worrying their suppliers.» This leads to a situation where, once they reach the commercial court, it is too late to redress the situation, and these companies are liquidated in three out of four cases.
This phenomenon of massive bankruptcies leads to a series of quiet layoffs, often ignored by the media. These business closures, even if they do not make the headlines, affect thousands of employees each month. The social impact is therefore significant, but not very visible in public opinion. Experts estimate that these closures will continue at the beginning of next year, and that they could even intensify if interest rates remain high and French consumption does not resume.
What solutions can be found to improve the situation of VSEs?
For this situation to stabilize, several conditions must be met. Interest rates must fall, which would give some breathing space to small businesses in difficulty. At the same time, a recovery in consumption would be necessary to support demand and encourage the growth of small structures. These measures seem essential to avoid a worsening of the phenomenon and allow VSEs to recover from the crises experienced in recent years.
