French very small enterprises (TPE), which are businesses with a limited number of employees and often operate in local markets, are facing multiple financial challenges according to the latest TPE Barometer report from the Syndicat des Indépendants (SDI). In the third quarter of 2026, 61% of surveyed business managers reported a drop in revenue compared to the previous quarter, with 43% experiencing a decline and 18% facing a significant drop. Only 8% saw an increase in their business activity, highlighting a widespread downturn in the sector. Financial pressures are also evident in other areas. Around 71% of business leaders reported a decrease in their net profit, and 66% experienced a contraction in cash flow. In the third quarter, 55% of respondents faced cash flow difficulties, up from 50% in the previous quarter. Additionally, 42% of surveyed managers said that, if their current activity level continued, their reserves would not be enough to cover expenses for three months or more. This indicates a growing concern over liquidity and financial stability. The survey also reveals a broader economic pessimism. Approximately 91% of respondents noted a decline in consumer spending since the start of 2026, and 93% expect the French economy to worsen in the next year. Similarly, 73% fear a deterioration in their own business prospects, while 77% feel uncertain about their ability to grow their companies. These concerns are reflected in the rising number of business leaders considering ceasing operations: 29% said they were thinking about or considering closing their businesses in the third quarter of 2026, a significant increase from 17% in the previous year. The challenges are also impacting hiring and investment. Only 17% of surveyed managers were actively looking to hire, down from 13% in the second quarter and 17% in the first quarter of 2026. Many cited difficulties in finding motivated or skilled candidates, high salary costs, and economic uncertainty as barriers. Additionally, 51% of managers have postponed or abandoned at least one investment project in the last year due to economic, tax, or political concerns. Meanwhile, 72% of those who applied for cash flow loans in the last six months received a favorable response, though 70% believe credit conditions have become more difficult, with 24% giving up on loans due to fear of rejection.