Too often in the media and in the Benin WhatsApp Number List mouths of the French, we are witnessing an amalgamation which puts all companies in the same basket. They all make a profit, they are helped and everything is done for them. I’ve had enough of these indiscriminate claims that “all” companies are far from comparable. SMEs and midcaps: the French question The French economic fabric is very heterogeneous and made up of: 287 large companies, 3.6 million VSEs (very small businesses), 140,000 SMEs (small and medium-sized enterprises) 5,800 mid-sized companies (mid-sized companies), This is also much lower for this last category than in Germany which has 13,000 or the United Kingdom and Italy which have around 10,000. The same can be said for SMEs because Germany has more than 400,000 and almost all of which are exporters.
Among the explanations that emerge to explain the low number of ETI there is very often the taxation of capital: the high inheritance taxes in France require heirs to have to sell the business to meet the costs. At best, selling helps strengthen other businesses, but sometimes it leads to restructuring or closures. There are examples known to all, such as Salomon or Rossignol, two companies that were sold because the managers failed to transfer or keep their shares. But that cannot be the only reason for the low number of SMEs and mid-cap companies! Why compare what is not comparable? The life of a manager of a CAC 40 company cannot be compared to that of an SME owner who has often created his company by dint of courage, sleepless nights, often to the detriment of his personal life and sometimes with a certain unconsciousness.
And The Boss Of The Cac 40?
He took significant risks by bringing the money he had, sometimes by borrowing from relatives and always from a bank. From near or far, he got his family on board in his project, mobilizing all those around him by sharing all his projects, his desires, but also his fears and difficulties. The sacrifices are enormous and family life is often put on hold: little availability for children, spouse, parents or friends. His project comes first because he wants to succeed more than anything. Read also: Entrepreneurs: let’s get started in the future! On a daily basis, to begin with, he is obliged to do everything: think about his product / service, the marketing of his offer, find customers but also do the administrative procedures.
At the 1st euro of turnover, he discovers concretely what contributing means and must make his contribution to the State through the various taxes that he will have to honor before even receiving a 1st euro of salary. mv-040419-194 But he no longer has a choice because he has launched and his project must work otherwise he will lose everything he has invested, including his personal property. Very quickly he will have to hire and create his first jobs, and will realize that in order for his employees to be able to receive € 1, he will have to pay 2. Urssaf payments,
A Constant Concern
VAT, suppliers, salaries etc. will soon be staking out calendar and teaching him to juggle … This juggling with cash, all SME owners know it by heart. A term that many French people hear, but that few understand. Just because the business is making numbers doesn’t mean it has the money in its account to pay its bills. It often has its WCR, the working capital requirement , to finance. This is the amount needed to pay bills while the money customers owe their account. And yes, not all customers pay when they are sent an invoice, they wait to be revived because they themselves want to manage their cash flow. Suddenly our SME boss adds a small mission, as if there were some missing And to top it off, he will only be able to get paid once his results are known and according to the performance of his company.
But to hold out over time, it will have to leave a large part in the company to strengthen its equity and allow it to gain cash flow flexibility or investment capacity to build the future. In short, he worked like crazy, does a large part of the tasks of the company, the ones he likes but also a lot of the tasks he doesn’t like. It has paid its taxes, its employees and its suppliers and will only be able to afford it if the company allows it, with the additional need to strengthen the company’s funds. mv-040419-175 A constant concern Our entrepreneur will give all his energy from morning to night, and will think about his business 24 hours a day, 365 days a year. He lives with it for better and for worse.