In 2021, INSEE recorded 6,600 mid-sized companies (ETIs) in France, representing 29% of total revenue and generating €31.8 billion in export turnover, thus contributing to nearly one-third of all exports from the productive sector.
Small and medium-sized enterprises (SMEs) numbered 158,600 in 2021. They employed 29% of France’s workforce, accounted for 23% of the added value, and generated €11.5 billion in export turnover.
The combined exports of these two categories of businesses are nearly equivalent to those of all large companies in France (€54.4 billion).
International expansion is therefore now a major strategic challenge for ETIs and SMEs, many of which are located outside Paris. While Paris benefits from a historic density of talent and investment, regional areas are showing growing momentum in their conquest of new, particularly international, markets.
In an unstable political and economic national context, internationalization is more than ever a lever for sustainable growth and a response to the challenges of global competitiveness.
The challenges of internationalization for regional ETIs and SMEs
global competitiveness
In the face of accelerated globalization and the digitalization of trade, regional ETIs and SMEs wishing to develop and sustain their business must look beyond national borders. According to a 2024 study by BPI France, nearly 65% of regional businesses view international expansion as a key growth driver to differentiate themselves from the competition.
Diversifying markets also reduces dependency on a single territory and mitigates risks linked to local economic fluctuations.
A demand for innovation and competitiveness
Internationalization forces businesses to innovate to adapt to the demands of diverse markets. Facing different business cultures and heterogeneous regulations encourages the implementation of agile strategies and the integration of new technologies.
The adoption of advanced digital tools for international performance tracking and human resource management is integral to this process. Note the critical role of Country Managers in expansion processes (an opportunity to revisit our dedicated article on this topic).
This dynamic of innovation results in the continuous improvement of internal processes and the upgrading of products or services, thereby strengthening overall competitiveness.
“Internationalization is a major opportunity for regional ETIs and SMEs. By nature, as in sectors like agri-food, luxury goods, or cosmetics, many strong mid-sized companies have no choice but to structure themselves beyond our borders. The diversification of markets and constant innovation enable them to meet the challenges of a globalized economy while creating long-term value for these organizations,” says Philippe Fresse, Practice Director at NAOS International.
Levers and strategies for successful international expansion
The importance of a tailor-made strategy
The success of an internationalization project relies on a strategy adapted to each company’s specificities. SMEs and ETIs must conduct a thorough diagnosis of their strengths, weaknesses, and opportunities offered by foreign markets.
Analyzing the competitive environment, segmenting target markets, and identifying local partners are crucial steps. It is also essential to prioritize actions carefully and avoid spreading resources too thin.
Studies by the Marseille Chamber of Commerce and Industry (2024) highlight that personalized commercial and marketing approaches are vital to winning over customers with varied expectations.
The development of cultural, linguistic, and regulatory action plans, combined with the recruitment of a country manager with significant experience and market knowledge, will form the indispensable foundation for successful expansion.
Capitalizing on local identity and regional know-how
The success of businesses in the South of France largely stems from their ability to leverage their local identity. Traditions, lifestyle, and regional expertise are major assets that, when well-exploited, create real differentiation in international markets.
Building authentic storytelling and highlighting relevant references strengthen the attractiveness of companies and spark foreign consumer interest. By combining tradition and innovation, these organizations succeed in creating synergies between their cultural heritage and the demands of a globalized market.
“By blending tradition and modernity, they create a synergy where local know-how becomes a strategic advantage on the international stage, as demonstrated by the leading companies in the PACA region,” adds Philippe Fresse.
The internationalization of regional businesses is far from a mere geographical expansion; it is part of a broader strategy to promote local talents and know-how.
By breaking free from Parisian influence, these businesses assert their uniqueness and ability to adapt to a globalized market while nurturing the strengths and assets specific to their territories.
This territorial diversification thus enables a rethinking of economic governance models and fosters sustainable development.
Moreover, the experience of companies from the South of France, which have capitalized on their territorial roots, shows that successful internationalization also relies on the smart use of local strengths.
Whether by showcasing a rich cultural heritage or promoting unique production methods, every region holds resources that, when integrated into a global strategy, can turn challenges into opportunities.
The South of France is home to many businesses that have successfully conquered international sectors and markets through innovative strategies and solid expertise.
The NGE Group – “New Generations of Entrepreneurs” – was born in 2001 in Saint Étienne du Grès, in the Bouches-du-Rhône region, from the merger of two companies: Guintoli, one of France’s leading earthwork firms, and EHTP, a hydraulic group.
The group quickly expanded through both organic and external growth, diversifying to become a multi-sector player in construction and public works (BTP). Today, NGE has over 10,000 employees, with turnover exceeding €3 billion and a presence in about twenty countries, all while maintaining an atypical management model: 72% of the company is owned by its founders, executives, and employees.
The ADF Group (formerly Ateliers de Fos) is an engineering company focused on production and maintenance, founded in 1962 in Fos-sur-Mer. Since 2005, the group has diversified and internationalized its activities, notably through external growth. It is now present in around ten countries, active in sectors such as mobility, energy, materials, technology, and health & wellness.
The group emphasizes team engagement and proximity to employees, notably through a managerial governance model. In 2023, the ADF Group achieved €540 million in turnover and aims for €1 billion by 2030; it employs 4,000 people.
In a different sector, Fogale Sensors, founded in Nîmes in 1983 by researchers, specializes in the design and commercialization of high-precision, high-technology sensors for measuring distances, positions, displacements, and vibrations without contact in constrained environments. Initially focused on the dimensional measurement market, the company has expanded into space, medical, turbomachinery, robotics, and automotive sectors. Today, it generates 70% of its revenue internationally.
“Companies that stand out internationally adopt tailor-made strategies that integrate a deep understanding of local markets and targeted recruitment to strengthen their competitiveness,” notes Philippe Fresse.
The shift away from the traditional Paris-centered model paves the way for a profound redefinition of economic networks, promoting a more balanced and decentralized approach to territorial development.
Indeed, the rise of regional hubs, driven by combined public and private initiatives, enables the emergence of true local economic hubs capable of competing in attractiveness with the capital. These regional hubs leverage competitive advantages such as geographical proximity, sectoral specialization, and, most importantly, a deep understanding of local realities.
This evolution offers companies a unique opportunity to benefit from an economic fabric more closely aligned with their operational and strategic needs. Furthermore, it fosters innovation and inter-company cooperation through networks of local partners firmly rooted in their territory.
In short, this regional dynamic is helping to shape an agile, innovative, and resilient economic ecosystem where economic players directly benefit from greater market knowledge and increased responsiveness to market changes.