French SMEs Insist Their Growth Depends on Access to Single Market

French SMEs are increasingly dependent on access to the European Single Market for their financial performance, with over 86% stating it is vital for their growth.

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French SMEs Insist Their Growth Depends on Access to Single Market — Source: Depositphotos

The Single Market, comprising 99.8% of enterprises, provides 42% of France’s GDP output, and employs 52% of private sector workers. However, 69% of SMEs surveyed cited different regulations among EU states as a hindrance to their expansion.

85% of respondents believe employing digital technologies could increase their sales in this sector. Aligning and simplifying policies among EU countries could release the true potential of the Single Market, potentially resulting in a 0.6% annual increase in French GDP per capita and creating 160,000 new jobs.

Source: Depositphotos

Digitalization supports SMEs’ development and boosts export capabilities, but French SMEs lag behind their EU counterparts in e-commerce adoption. The report offers several recommendations to increase SMEs’ involvement in the Single Market, including prioritizing EU integration, creating a single VAT ID, and embracing digital labeling as a viable replacement for real labeling.

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