Mixed Economic Trends for French TPE-PMEs in 2025 Highlight Regional Disparities and Innovation

The economic landscape for small and medium-sized enterprises (TPE-PMEs) in France in 2025 presents a mixed picture, with significant regional variations and sector-specific developments influencing activity and outlook.

In the Provence-Alpes-Côte d'Azur (PACA) region, a barometer published for the third quarter of 2025 reveals a 1.1% decline in TPE-PME activity, continuing a downward trend for eight consecutive quarters. Nicolas Férand, president of the Order of Chartered Accountants in the region, expressed concern over the sustained downturn, attributing pressures to rising insurance and energy costs, and stating, “the everyday economy is struggling.” The analysis highlights regional discrepancies: while the Hautes-Alpes department registered a positive 1.2% growth, largely driven by its focus on short supply chains, the Bouches-du-Rhône faced a 2.7% contraction, impacted notably by a tough September for hospitality and restaurant sectors. The latter saw a reduction in average customer spending, as patrons opted for simpler meals out of necessity rather than pleasure.

Conversely, some sectors are showing resilience and growth. The real estate industry experienced a 2.2% surge in the third quarter compared to the previous year, resulting in a cumulative increase of 6.2% from the first to third quarters of 2025 versus 2024. Additionally, landscaping service TPE-PMEs benefited from a 4.3% revenue boost during this period. Despite challenges, business failures fell by 4%, attributed to effective preventive measures by courts and business registries, although fiscal uncertainties loom with the pending 2026 finance bill

In Nouvelle-Aquitaine's Gironde area, JK Corporation exemplifies a growth story. The agricultural-industrial firm has increased chip production from 18,000 to 25,000 bags daily due to high demand from supermarkets, with over half of sales under private labels. A strategic partnership with Brets introduced new chip flavors, including a ‘roast chicken, confit garlic, and herbs of Provence.’ JK Corporation invested €10.5 million in methanization technology that converts unsellable vegetables into electricity powering 4,500 households and compost, enhancing sustainability and cost control. A €4 million launch of chip production, supported by €1.2 million in regional and EU subsidies, plus an acquisition that expanded farmland by 600 hectares, positions JK Corporation to double its production capacity in 2026 alongside increased seasonal hiring.

These developments illustrate the complex panorama of TPE-PMEs in France in 2025: while some regions and sectors face ongoing difficulties, others innovate and grow, leveraging local resources and sustainability-driven investments to counterbalance broader economic headwinds.