CESE Calls for a Moroccan Small Business Act to Energize Micro and Small Enterprises

The Economic, Social, and Environmental Council (CESE) recommends the adoption of a Moroccan Small Business Act, as well as the acceleration of an integrated financing and support system dedicated to micro, very small, and small enterprises (micro/TPE/PE). This initiative aims to enhance their resilience, stimulate growth, and modernize production units to better contribute to the economic development of the Kingdom.

These recommendations are based on a CESE study entitled “The Challenges of Micro, Very Small, and Small Enterprises in Morocco: Growth, Modernization, and Development,” undertaken following a request from the Chamber of Councillors.

Micro and Small Enterprises: Economic Pillars but Structurally Fragile

CESE emphasizes that micro, small, and very small enterprises represent over 98% of the formal entrepreneurial landscape and account for more than 56% of private sector jobs. Despite their socio-economic weight, their impact on wealth creation remains limited.

Between 2017 and 2022, only 0.2% of microenterprises advanced to a larger size, while over 15,600 failures were recorded in 2024, predominantly affecting small and very small enterprises.

These businesses face multiple obstacles, including:

• Weak management and digital skills
• Difficult access to financing
• Insufficient non-financial support
• Dependence on the local market
• Unfair competition from the informal sector
• Cumbersome administrative procedures and high payment delays

The study also highlights the low adoption of digital tools, an inadequate legal framework for startups, and a fragile relationship with tax authorities, despite ongoing efforts in digital transformation and administrative simplification.

An Integrated Approach to Strengthen the Resilience of Small Enterprises

For CESE, the success of support policies for small enterprises requires a comprehensive and coordinated approach, structured around two main axes:

1. Strengthening the internal capabilities of micro/TPE/PE
2. Improving their external environment through modernized governance

The Council proposes the creation of a unique regulatory framework that unifies existing support measures, along with the swift implementation of a Moroccan Small Business Act. It also recommends establishing an independent national body to monitor and evaluate public policies in favor of small enterprises.

Concrete Levers for Modernizing Small Businesses

Among CESE’s key recommendations are the following:

• Mapping Regional Needs: Tailor support measures to local specifics.
• Expanding Training: Engage entrepreneurial associations in the development of project leader training programs.
• Integrating Entrepreneurial Skills: Incorporate these components into school and vocational training curricula, including work immersion internships.
• Accelerating Access to Financing: Consider the particularities of different stakeholder categories (microenterprises, TPE/PME, startups).
• Publishing Implementation Texts: Relate to the Investment Charter and the SMEs support framework.
• Establishing a National Non-Financial Support Plan: Structured around the Small Business Act, encompassing local services, partnerships, and innovation.

CESE also calls for facilitating the integration of small enterprises into value chains, promoting strategic alliances, and allocating a portion of public procurement to small businesses through differentiated quotas and co-contracting mechanisms.

A More Favorable and Fair Business Environment

To enhance the competitiveness of small enterprises, CESE advocates for:

• Strengthening the fight against corruption and unfair competition
• Simplifying and digitalizing administrative procedures
• Conducting a mid-term assessment of the tax reform to alleviate the burden on smaller entities and restore trust between businesses and the administration

A National Vision for an Inclusive Economy

In conclusion, CESE reaffirms that implementing a Moroccan Small Business Act is a crucial step toward building a more inclusive, competitive, and sustainable economy. This comprehensive framework would consolidate the contributions of small and very small enterprises to national development, boost employment, and embed an entrepreneurial culture at the core of Morocco’s productive fabric.