Background and  support

In 2023, Bpifrance invested €38.1 billion to support 86,520 French microenterprises, SMEs and ETIs, with a particular focus on microenterprises. Of this financing, €21.1 billion was devoted to export guarantees. Bpifrance intervenes at every stage of a company’s development through several complementary levers: support for innovation, bank financing guarantees, equity capital, export risk cover (prospecting insurance, credit insurance), etc.

80% of businesses supported were microenterprises, 83% of beneficiaries were located outside the Ile-de-France region and 16% in rural areas. Bpifrance is particularly active in non-metropolitan areas and the Industrial territories.

The entrepreneurial fabric in 2023: a decline in business start-ups, an increase in business failures and a mixed cash flow situation

In 2023, more than one million new businesses were created, although the rate of business creation has reached a plateau since 2021. The year 2023 also saw an increase in business failures, which exceeded pre-crisis levels.  However, at the end of 2023, a majority of the businesses surveyed believed they had sufficient cash to meet their financial obligations.

Bpifrance schemes: crucial support for business growth, innovation and guarantees

Against this gloomy backdrop, in 2023, in order to broadly support the entrepreneurial fabric, Bpifrance’s activity excluding Export Insurance has increased by +8% in terms of amounts compared with 2022, i.e. +€2.7bn, driven by support for Innovation (+80%) and the Guarantee activity (+8%). Bpifrance’s support for business is down in terms of amounts (-17%) but up in terms of the number of beneficiaries (+2%). The France 2030 Plan will help to maintain a high level of innovation funding in 2023. Finally, the number of companies supported (financially and/or non-financially) will also increase in 2023, to almost 86,520 (up 3% on 2022). This increase will be driven by a 58% rise in the number of businesses supported (non-financial) and a 16% rise in the number of loans granted.

Counter-cyclical role and  impact

Bpifrance plays a key role in times of crisis, supporting the credit market. In 2023, while business credit production fell by 16%, Bpifrance’s activities increased slightly, boosting its market share, particularly in medium and long-term loans and guarantees.

In particular, companies supported by Bpifrance are growing faster than those that are not supported but are initially similar:

• +9.1 points growth in sales,
• +11.7 points for the workforce,
• +15% for export sales.

This support has generated €146 billion in additional sales and maintained or created 458,000 jobs for the companies supported between 2013 and 2019.

In addition, businesses receiving support from Bpifrance show greater resilience and a higher survival rate than those that do not receive support but are initially similar. The impact on the three-year survival rate is particularly marked for start-ups, with a gain of 8 points.

Leverage and co-financing with the

Bpifrance plays an incentive role by encouraging private banks to take on more risk. In 2023, 45% of the companies supported had a low rating, compared with 35% of all companies rated by the Banque de France. This lever contributes to the massive co-financing of high-risk projects.

Bpifrance’s involvement maximises the impact of public funding:

• 1 euro in government funding generates €21.4 in private financing through credit guarantees,
• 1 invested in unsecured loans generates €16.9 in Bpifrance loans and €78.6 in bank financing,
• Aid for innovation generates a multiplier effect of €3.4 in third-party funding and self-financing for every €1 invested.

 

In 2023, Bpifrance continued to play a crucial role in supporting the growth, innovation and resilience of French businesses, particularly in a difficult economic climate. Through its action, it generates a significant leverage effect, promoting job creation, export development and the long-term survival of businesses.