crisis – The conflict in the Middle East is pushing French VSEs and SMEs “into a zone of major risks”, warns the Confederation of Small and Medium Enterprises on Thursday
The surge in fuel and raw material prices is having an impact on small businesses. The conflict in the Middle East, which has caused a “cost shock” is pushing French VSEs/SMEs “into a zone of major risks”, warns a study by the Confederation of Small and Medium Enterprises (CPME) on Thursday.
This survey, carried out among 2,350 leaders from April 28 to May 12, is published while Prime Minister Sébastien Lecornu must present at 5 p.m. new targeted aid to mitigate the consequences of the war.
Compressed margins and fragile treasuries
In the first half of 2026, 45% of managers note “a deterioration in the overall situation of their company,” according to the CPME press release. “Expectations for the second half of the year remain very degraded, in a context of compressed margins, weakened cash flow and persistent uncertainty,” underlines the organization. Thus 38% of managers consider their cash flow tight or critical, including 11% in a situation where “the survival of the company is threatened in the short term”, at a time when banks are drying up financing.
The rise in the costs of energy and raw materials penalizes VSEs/SMEs all the more as a large part cannot pass them on “in their selling prices, unless they lose customers or markets”.
A drop in numbers
This “scissors effect”, combining “decrease in activity, increases in costs and cash flow under pressure”, (…)
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