FNDI: The State is deploying a new tool to support the growth of very small businesses in industry

Mis à jour le 21 May 2026

In 2026, the question of the structural transformation of French Very Small Enterprises (VSEs) remains a crucial issue for the country’s economic recovery. Faced with heightened global competition, where innovation and digitalization are becoming fundamental pillars, the government has launched an innovative program: the FNDI (National Fund for Industrial Development). This strategic tool aims to support the growth of VSEs in industry by providing them with the necessary resources to overcome their traditional limitations, access appropriate financing, and make a lasting contribution to the national productive fabric. The implementation of the FNDI comes at a time when sector fragmentation and technological lag still hinder a majority of small businesses, often confined to low value-added activities due to a lack of resources or skills. The revitalization of local industrialization cannot therefore occur without a broad, collective support approach, bringing together public and private stakeholders in a dynamic of sustainable transformation. In a global context where the digital and ecological transition is imposing new standards on all industries, this government initiative represents a decisive step. It also intervenes with a view to tax reform and combating the informal economy, essential for renewed growth and greater fairness among stakeholders. The issue goes beyond simple financial allocation: it involves redefining a framework of governance, transparency, and trust, to make each micro-enterprise a full-fledged driver of French industrial development. The synergy created by the FNDI could thus generate a domino effect, strengthening the attractiveness and innovative capacity of the local entrepreneurial ecosystem, in line with the national strategy for strong and inclusive industrialization.The FNDI, a new support mechanism dedicated to the growth of very small manufacturing businesses

The National Fund for Industrial Development (FNDI) is driven by a clear ambition: to transform the landscape of small industrial businesses, often considered secondary players, into true partners in economic recovery. By launching this tool, the government aims to address the shortcomings in financing and strategic support frequently observed in these businesses. In 2026, more than 80% of these small units lacked real access to suitable credit, hindering their ability to invest in modern equipment, train their employees, or integrate innovative processes. The government’s objective is to end this historical marginalization by creating an ecosystem conducive to their growth, providing them with resources and expertise.

This support is manifested through several key areas, including facilitating access to preferential loans, implementing targeted professional training programs, and establishing networks for sharing experiences. Furthermore, the FNDI also includes a technological deployment component, enabling very small businesses (VSBs) to acquire advanced digital tools, essential in a globalized market. Engineering and innovation experts will be mobilized to support these businesses in their growth, preventing them from being marginalized in the value chain. These mechanisms will make it possible to enhance the competitiveness of products from small businesses by promoting quality, traceability, and compliance with international standards.

The levers and concrete measures of the FNDI deployment for SME growth

The large-scale deployment of the FNDI is based on a series of concrete measures designed to establish a virtuous circle. First, a precise assessment of the needs of SMEs in each sector will allow for the effective targeting of priority investments. The implementation of transparent and accessible criteria for granting funding will facilitate their participation and active involvement in this process. Furthermore, the creation of a one-stop shop, listing all available support services, will make it easier for small businesses to access support programs and personalized assistance.

Local partners, such as Chambers of Commerce and Industry (CCIs), play a key role in this strategy. Their involvement aims to ensure optimal dissemination of information, while also serving as a bridge between the government and the business community. Ongoing training for local stakeholders, particularly on the topics of innovation and the ecological transition, is also crucial. will also be strengthened. For example, by collaborating with vocational training centers, the FNDI accelerates the upskilling of artisans and SMEs in response to new market demands, particularly eco-responsibility and digitalization. The synergy between these stakeholders will determine the overall success of the operation, promoting a resilient and innovative business culture at all levels. Tax challenges and the fight against the informal economy in the context of the FNDI’s deployment

A major challenge for the FNDI’s success lies in the credibility of the tax system and the fight against fraud, often considered one of the major obstacles to the formalization of small businesses. In 2026, Madagascar was still struggling to achieve a tax burden of approximately 10.5% of GDP, a level insufficient to support strong and equitable growth. Low tax collection fuels a vicious cycle where a significant portion of micro-enterprises evade taxation, reducing their ability to access financing or genuine official recognition, which is even more difficult to obtain.

This is why the deployment of the National Fund for Industrial Development (FNDI) must be accompanied by a significant effort to improve transparency and strengthen confidence in the tax system. Business certification, the establishment of a single register, and enhanced controls will encourage more small businesses to formalize their operations. Furthermore, the fight against corruption and nepotism remains a cornerstone for creating a climate conducive to growth. By emphasizing these issues, the government hopes that the growth of very small businesses (TPEs) will not be hampered by abuses or a lack of transparency that undermine their credibility.

Structuring innovations to drive the development of industrial TPEs by 2026

In addition to financial support, fostering innovation is a major lever for the growth of very small businesses (VSBs) in industry. Digitalization, robotics, and the integration of clean technologies are emerging as priority areas. For example, SMEs specializing in mechanical manufacturing have already integrated 3D printing to produce small batches of high-precision components, thereby reducing lead times and costs.

Similarly, innovation in management, with the adoption of digital systems for supply chain management and quality management, will strengthen their competitiveness. The National Fund for Industrial Development (FNDI) therefore plans to invest in research and development projects, in partnership with innovation centers or technology clusters. The proliferation of these initiatives will not only modernize production but also expand the markets accessible to VSBs, particularly in export markets.

Another development concerns the structuring of local supply chains, where VSBs play a crucial role. By improving their technical expertise and adaptability, they will be able to meet international standards and even exceed some of them. Through this dynamic approach, the FNDI aims to progressively transform local industry, eradicating traditional silos in favor of a resilient and innovative economy. The tools and structural support needed to ensure the FNDI’s success by 2026

To ensure effective scaling up, the FNDI will integrate a range of support tools tailored to the specific needs of each business. These will include a one-stop shop providing access to all available support, as well as access to experts specializing in financing, management, and innovation. The distribution of a comprehensive support guide will be essential to raise awareness among very small businesses (VSEs) about the necessary steps and to empower them to manage their own development.

The deployment of programs such as mentoring and sponsorship of more established companies will encourage the transfer of best practices. Furthermore, targeted awareness campaigns, in partnership with local stakeholders, will broaden the initiative’s reach. The key to success lies in making the FNDI a true lever for comprehensive support.

The synergy between financial support, training, and innovation will thus contribute to building a resilient and modernized entrepreneurial ecosystem, capable of meeting the challenges of tomorrow. The tangible benefits of adopting the National Investment Fund (FNDI) for Malagasy industry

Beyond its immediate impact on the growth of very small enterprises (VSEs), the FNDI could profoundly transform the Malagasy industrial landscape. The increased formalization of small businesses, their technological development, and their integration into innovative sectors will stimulate the diversification of the local economy. The growth of these businesses will produce more competitive products, while creating new job opportunities, especially in rural and peri-urban areas. Better regulated taxation will also provide more predictable revenue for the State, thus facilitating future public investments in infrastructure and vocational training. To illustrate this impact, let’s take the example of a metal parts manufacturing workshop in Antsirabe. Thanks to FNDI support, this SME was able to modernize its equipment, train its craftspeople, and open new export markets. Streamlining its production allowed it to reduce costs, improve product quality, and increase its capacity to meet international standards. By involving other small businesses in this approach, Madagascar could build a diversified local industry, resilient to global crises.