Financing businesses: an affair of State? Rise and financialisation of public financing for small and medium-sized enterprises[Financer les entreprises : une affaire d’État ? Émergence et financiarisation du financement public pour les petites et moyennes entreprises]

Contemporary economic policies have become increasingly reliant on lending and guarantee instruments managed by public banks. Does this trend signal a return of the state, or rather the financialisation of public action? This article explores the long-term institutional transformations of public SME financing in France, analysing the evolving roles of finance, businesses, and the state. Drawing on historical institutionalism and the political economy of financialisation, it examines both the creation and the gradual financialisation of the institutional arrangement governing public SME financing. Based on extensive sources -108 archive boxes, additional historical materials, and ten semi-structured interviews -the study traces the emergence of a financialised institutional arrangement that has underpinned French economic policy since the late 1990s. Initially centred on public guarantees developed in the interwar period, the introduction of public loans in the 1980s produced a fragile arrangement that ultimately facilitated financialisation through the integration of financial devices and actors. This historical trajectory helps explain the recent conjunction of renewed public intervention and the consolidation of financialisation dynamics.