Image Credit: Vince Millett, Essaouira, Morocco

The African Development Bank, EiNA, and the Moroccan Ministry of Economy and Finance have published a report entitled “Entrepreneurial Profile of Morocco“. The report is based on a comprehensive survey of Moroccan entrepreneurs, and it provides valuable insights into the country’s entrepreneurial landscape. For example:

• The rate of entrepreneurial activity in Morocco is 15.3%, which is higher than the average for North Africa and the Middle East.
• The most common type of business in Morocco are microenterprise, with 92% of all businesses having fewer than 10 employees.
• Only 20% of Moroccan entrepreneurs have access to formal finance, and the majority of them rely on personal savings or loans from family and friends.

The research conducted is pioneering on the continent as it is grounded on a comprehensive national survey of entrepreneurial profiles that accurately reflects the labor market at both national and regional scales. It delves into socio-demographic traits and inherent abilities of entrepreneurs, while also pinpointing the primary obstacles and requirements for assistance in establishing and expanding their enterprises.

A total of 9085 individuals from 3034 households were included in the survey, leading to the identification of 2297 entrepreneurs (both existing and prospective). These entrepreneurs collectively account for a population of 7.4 million individuals across Morocco.

It covers a wide range of topics, including the characteristics of Moroccan entrepreneurs, the challenges they face, the types of businesses they run, and the policies and programs that support entrepreneurship in Morocco. It also provides a detailed analysis of the entrepreneurship ecosystem in Morocco, including the strengths and weaknesses of the country’s entrepreneurial environment.

“Entrepreneurship in Morocco is a means of social mobility and a way to create value for society,” says Dr. Fatima Zahra Biaz, Director of Entrepreneurship at the Moroccan Ministry of Economy and Finance.

The report reveals several key takeaways and insights:

• Morocco has a relatively low rate of entrepreneurship compared to other countries in the region. Only 6.8% of the adult population is engaged in early-stage entrepreneurial activity, compared to an average of 12.6% in other MENA (Middle East and North Africa) countries.
• However, there is potential for growth in entrepreneurship in Morocco. The report notes that the country has a well-educated workforce and a growing middle class, which are both important factors for entrepreneurship
• Access to finance is a major challenge for entrepreneurs in Morocco. The report states that only 14% of entrepreneurs have access to formal finance, and even fewer have access to venture capital or angel investors.
• The report recommends several measures to promote entrepreneurship in Morocco, including improving access to finance, providing more support for women entrepreneurs, and promoting entrepreneurship education in schools.

One interesting statistic from the report is that women entrepreneurs in Morocco face particular challenges. The report states that “only 5% of women entrepreneurs have access to formal finance, compared to 23% of their male counterparts.” This highlights the need for targeted support for women entrepreneurs in Morocco.

Amina Benkhadra, the CEO of Moroccan National Office of Hydrocarbons and Mines (ONHYM), emphasizes the importance of creating a supportive environment for women entrepreneurs in Morocco to unlock their untapped potential, “It is essential that we create a supportive environment that enables them to succeed,” highlights Amina.

Benkhadra’s statement sheds light on the significance of empowering women in the entrepreneurial landscape of Morocco, recognising their valuable contributions to the economy and society as a whole.

One shining example of a successful young female entrepreneur in Morocco is Fadwa Moussaif, an Anzisha alumna who was selected as the prestigious Anzisha Prize in 2017. Through her business, Boucharouette Eco-Création, Fadwa aims to revive and preserve traditional craftsmanship in Casablanca while providing employment opportunities and empowerment to others. Her dedication to preserving a vital heritage practice showcases the impact that women entrepreneurs can have on both cultural preservation and economic development.

Another important insight from the report is the role that education can play in promoting entrepreneurship. The report notes that “entrepreneurship education has been shown to be effective in promoting an entrepreneurial mindset and developing the skills and knowledge needed for successful entrepreneurship.” This suggests that investing in entrepreneurship education in schools could be an effective way to promote entrepreneurship in Morocco.

Overall, the “Entrepreneurial Profile of Morocco” study highlights the strengths and weaknesses of the country’s entrepreneurship ecosystem, and it provides recommendations for policymakers and other stakeholders to support the growth and development of Moroccan entrepreneurs, as Dr. Nizar Baraka, President of the Economic, Social and Environmental Council of Morocco highlights, “It is crucial that the government and private sector work together.”