by Introduction
Impact of Small and Medium Scale Enterprises on Moroccan Economy
Small and Medium Scale Enterprises (SMEs) are the basis of Moroccan economy and play an important role in economic growth, job creation and regional and local development, but their contribution remains below the potential that SMEs can achieve. Unlike large enterprises, SMEs have a fragile structure and limited resources, and are more exposed to the constraints of their environment. This results in an insufficient level of competitiveness and performance for existing SMEs, and a high failure rate for new businesses.
Being aware of the importance of SMEs and their role in economic and social development, Moroccan government provides them with the necessary support in funding, training, installation infrastructure and tax incentives for investment. And since SMEs are different than large enterprises, they are provided with a specific support better adapted to their needs by facilitating their access to financing, increasing their productivity, and upgrading their human resources through many programs and initiatives, to strengthen their capacities and increase their potential for economic development and job creation. This article highlights some of these programs and initiatives to encourage young entrepreneurs in Morocco to start their own business and guide them to benefit from financial and technical support.
National Initiative for Human Development (NIHD): A Participatory Approach to Building Human Capital
This initiative was launched in 2005 with a budget of 18 billion Morocco Dirham (MAD) approximately 1.8 billion US Dollar to support SMEs, cooperatives, and associations to alleviate poverty in rural areas and social exclusion in urban areas, fight against extreme vulnerability and impulse the human capital of the future generations (World Bank,2012).
Millions of Moroccans have benefited so far, improved their life conditions, and participated in the development of their country. The program has many youth platforms in all the regions of Morocco, and gives a nonrefundable financial support to:
1- Cooperatives, Limited Liability Companys (LLCs) and auto-entrepreneurs, aged between 18 and 35 years old, who have a project idea and live in the region of the youth platform. This category can benefit from training in entrepreneurship and financial support up to 100 thousand MAD (approximately 10 thousand US Dollar).
2- Cooperatives, LLCs, and auto-entrepreneurs less than 1 year old, aged between 18 and 35 years. This category can benefit from training and financial support up to 300 thousand MAD (approximately 30 thousand US Dollar).
3- Young people without diplomas who have no previous experience can benefit from training cost to integrate them into the job market (Massaralmokawil, 2022).
To benefit from this program, the entrepreneur must visit the nearest youth platform to register. He will then attend a training course in entrepreneurship and will be awarded a diploma at the end. Then the youth platform will help him make a business plan for his project that will be presented in front of a committee. After the project approval, the beneficiary receives the money in his bank account and can start buying equipment, and the NIHD staff stays in touch and gives technical support when needed to help with the project development (INDH, 2021).
Intilaka: Integrated Business Support and Financing Program
Intilaka (Arabic word for launch) is an offer with very advantageous conditions to finance and support entrepreneurs and project leaders (including SMEs, very small enterprises, farmers, auto-entrepreneurs, craftsmen, start-ups, and cooperatives) with an estimated annual income less than 10 million MAD.
In this program entrepreneurs can get a loan up to 1.2 million MAD with no personal guarantees and a preferential interest rate of 1.75% for rural enterprises and 2% for urban enterprises, plus a free loan of 300 thousand MAD refundable after 5 years (Upsilon Consulting, 2021).
Candidates who want to benefit from this offer can contact bank agencies, regional investment centers, OFPPT (Vocational Training and Labor Promotion Office), regional help desks or ANAPEC agencies (National Agency for the Promotion of Employment and Skills) where they can be oriented and assisted from creating their enterprise until getting the financial support (Invest Angier, 2021).
Istitmar: To Develop Efficient Industrial Ecosystems
The Istitmar (Arabic word for investment)program is implemented in line with the Industrial Acceleration Plan, and it is designed to support industrial SMEs with high-impact development projects with annual income between 10 and 200 million MAD by financing their tangible and intangible investment project.
To benefit from this program, entrepreneurs must apply online at https://candidatures.marocpme.gov.ma/ and submit their enterprise documents, with the help of « Maroc PME » advisors who are available to guide companies in preparing their application file. When accepted, Maroc PME contributes to the company’s investment project with a bonus of 20% of the total amount of the investment, with a ceiling of 10 million MAD (Maroc PME, 2023).
We-Fi Morocco: A Project for Women-Led SMEs in Morocco
The We-Fi project is deployed by the Ministry of Industry and Trade and the World Bank in partnership with Maroc PME Agency and the Federation of Moroccan Chambers of Commerce, Industry and Services, to help women-led SMEs develop their e-commerce activities to increase their sales, reach new markets and grow their business (Ministry of Trade and Industry, 2023).
E-commerce advisors offer support with international standards to help beneficiaries acquire new practical skills in various fields such as marketing and management, form their own network of professionals (international experts, sales platforms, logistics providers and payment platforms) and have potential new partners. They can also benefit from preferential rates with partner platforms (Maroc PME, 2022).
Candidates must first complete the online registration form at the link https://www.surveymonkey.co.uk/r/MoroccoSME_Francais , then, the selection team review the applications and arrange a short interview. Accepted candidates will be contacted to provide additional data on their company, products, and online sales. They will be matched with coaches and experts in many fields depending on their objectives and e-commerce needs. After completing the program, the team will carry out a monitoring and evaluation plan to measure the effectiveness of the program.
Conclusion
SMEs have become the center of economic, social, and cultural development and they should be encouraged to participate in this common action and make a greater impact in terms of job creation, modernization, and competitiveness with the help of this programs, to build an efficient and unified. Moroccan economy. SMES is undeniably the Heart of Development in Morocco.
References
INDH, “Document de Cadrage du Plan Pluriannuel du Développement Humain”
http://www.indh.ma/wp-content/uploads/2021/03/Document_cadrage_PPDH-.pdf
Investangier, “Intilaka: Programme intégré d’appui et de financement des entreprises (PIAFE)”
Maroc PME, “Istitmar PME” https://marocpme.gov.ma/istitmar/istitmar-pme/
Maroc PME, “Quelles sont les démarches à suivre” https://marocpme.gov.ma/wp-content/uploads/2022/12/WB-Morocco_PME_Appels_a_candidatures_FR_VF-14122022-Vf.pdf
Massaralmokawil, “Financement de l’INDH” https://massaralmokawil.ma/financement/credit-commecial/indh
Ministry of Trade and Industry, “Lancement du projet We-Fi e-commerce pour les PMEs dirigées par les femmes au Maroc” https://www.mcinet.gov.ma/fr/actualites/lancement-du-projet-we-fi-e-commerce-pour-les-pme-dirigees-par-les-femmes-au-maroc
Upsilon Consulting, “Intilaka: Programme de financement des TPE” https://www.upsilon-consulting.com/2021/03/programme-intilaka/
World Bank, Implementation Completion and Results Report 2012 https://documents1.worldbank.org/curated/en/817541475092702301/pdf/000180307-20141120030237.pdf
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