Moroccan enterprises are experiencing slower growth than their potential due to several critical factors, including limited access to financing, inadequate technological capabilities, and challenges in the broader business environment. This conclusion is drawn from a comprehensive working paper published by economists at Bank Al-Maghrib, which analyzes data from the World Bank’s Enterprise Survey conducted between 2010 and 2014, focusing on firms across the Middle East and North Africa, with a particular emphasis on Morocco.
The research highlights that the growth trajectory of businesses is influenced by both internal strengths and external conditions. It reveals that discrepancies in either aspect can significantly hinder expansion. Notably, firms in Morocco that can access formal bank financing tend to experience more robust growth in terms of job creation and sales figures. Companies that secure credit lines or loans tend to expand at a faster rate compared to those relying on informal funding sources, such as personal loans, which often leads to slower growth.
The findings identify financing as a primary barrier, particularly for smaller firms that are more susceptible to credit limitations and have a reduced capacity to withstand economic shocks, rendering their growth more precarious. Furthermore, the study emphasizes the importance of investing in technological advancements, research and development, and employee training, indicating that firms that engage in these areas perform significantly better. Even the adoption of fundamental digital tools, such as maintaining an online presence, correlates with enhanced growth. Additionally, companies that engage in exporting or introduce innovative products are also likely to experience faster expansion.
Conversely, firms that exhibit weaker technological capabilities struggle to keep pace. The research establishes a connection between political instability and financing constraints, noting that both factors negatively impact growth by diminishing firms' abilities to develop and utilize technology effectively. Interestingly, while younger and smaller firms may initially show rapid growth, this momentum often diminishes quickly. In contrast, larger firms tend to achieve steady growth over time, particularly once they reach a certain scale.
Broader economic conditions also play a crucial role in influencing firm performance. The study indicates that higher inflation rates are associated with weaker business performance, whereas improved governance and less cumbersome regulations can foster growth. Ultimately, countries with larger markets and more robust institutional frameworks tend to achieve better outcomes for their businesses.
As reported by en.hespress.com.
