Highlights

​The first of its kind on the continent, this study is based on a national survey of entrepreneurial profiles, representative of the national and regional labor markets. It identifies the socio-demographic characteristics and intrinsic capacities of entrepreneurs, and determines the main constraints and needs in terms of support for the creation and development of their businesses.

The survey covered 9,085 individuals in 3,034 households, among whom 2,297 entrepreneurs (established and potential) were identified. These entrepreneurs represent a population of 7.4 million individuals throughout Morocco.

The results of the study show that the Kingdom has entrepreneurial potential commensurate with its level of development. Indeed, this potential is estimated at 25% of the Moroccan population aged 18 and over, divided between 9% of established entrepreneurs and 16% of potential entrepreneurs who have initiated conceptual or concrete actions with a view to setting up a business. However, the study reveals that 57% of established entrepreneurs are doing so out of necessity, through micro and small businesses in low-productivity sectors and activities (almost 50% are self-employed and 40% are business owners with up to three employees).

The study reveals that 22% of new businesses are run by women. As for potential entrepreneurs, 44% are women, reflecting their growing aspiration to engage in entrepreneurship.

Informal entrepreneurship stands at over 70% nationwide. Various regulations (taxation, social charges and administrative procedures) and the instability of economic activity are perceived as the main constraints to formalization. On the other hand, access to health insurance and pensions are incentives for entrepreneurs to formalize their activities, which reinforces the case for extending social protection.

In addition, the study confirms that entrepreneurship and the development of very small, small and medium-sized enterprises (VSSMEs) represent an important source of short- and medium-term employment for the country. If just 5% of established and potential entrepreneurs were to develop their businesses, this could generate an average of 100,000 jobs a year nationwide. With this in mind, the study identifies five pillars that should form the basis of a strategy to promote entrepreneurship in Morocco, namely: Markets; Support; Regulation; Education and Financing (MAREF).

In terms of markets, the aim is to unleash the potential of entrepreneurs by facilitating access to markets and mobilizing private investment at local level to develop value chains and create business opportunities for (VSSMEs).

When it comes to support, almost 60% of entrepreneurs, especially women, seek technical assistance. The aim is to scale up existing programs to cover this demand and put in place an adapted range of support services for a heterogeneous population of entrepreneurs.

In terms of regulation, the regulatory framework needs to evolve to encourage the creation and development of (VSSMEs), the formalization of informal economic units and the extension of social security to all self-employed workers.

An entrepreneurial strategy also requires reforms in the education sector. In the short term, it is necessary to further improve the educational level of the working population, including first-time entrepreneurs, and to promote entrepreneurship in vocational training and university education. In the medium and long term, developing the skills needed for entrepreneurial activity requires interventions at pre-school and basic education levels.

Finally, the need for financing is expressed by more than 80% of entrepreneurs, yet only 6.7% have applied for financing from a bank. This paradox could be explained by the importance of the informal sector and the proportion of non-viable projects.

It should be emphasized that public action has already taken steps to address the issues raised by this survey. A number of reforms have been implemented by the government, notably the strengthening of the national system for guaranteeing financing and supporting entrepreneurship, the adoption of a national strategy for financial inclusion, the adoption of a new investment charter including a support mechanism for (VSSMEs), and the integration of a pillar dedicated to entrepreneurship in the national business environment framework. In addition, several initiatives and programs to support entrepreneurship have been set up for the benefit of different categories of entrepreneurs (the National Initiative for Human Development, Intelaka, Forsa, Innov Invest, Ana Mokawil, etc.).

____________________________________________

Media contacts:

Moroccan Ministry of Economy and Finance:

Mrs. Elharrane Lalla Mérième I Head of Communications and Organization I Treasury and External Finances Unit I  m.elharrane@tresor.finances.gov.ma

African Development Bank :

Communication and External Relations Department I media@afdb.org