The CESE Advocates for a Small Business Act in Morocco
The CESE Calls for a 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/VSE/SME).
This measure aims to strengthen their resilience, stimulate their growth, and modernize their production units to better contribute to the economic development of the Kingdom.
These recommendations are based on a CESE study titled “The Challenges of Micro, Very Small, and Small Enterprises in Morocco: Growth, Modernization, and Development”, developed following a request from the Chamber of Counselors.
Micro and Small Enterprises: Economic Pillars but Structurally Fragile
The CESE reminds us that micro, VSE, and small enterprises represent more than 98% of the formal entrepreneurial fabric and account for over 56% of jobs in the private sector.
Despite their socio-economic weight, their impact on wealth creation remains limited.
Between 2017 and 2022, only 0.2% of microenterprises grew into larger entities, while over 15,600 failures were recorded in 2024, predominantly affecting VSEs.
These enterprises face multiple obstacles:
Weak managerial and digital skills;
Difficult access to financing;
Insufficient non-financial support;
Dependence on the local market;
Unfair competition from the informal sector;
Burdened administrative procedures and high payment deadlines.
The study also highlights the low utilization of digital tools, a legal framework that is ill-suited for startups, and a fragile relationship with the tax administration, despite the ongoing efforts toward digitalization and simplification.
An Integrated Approach to Strengthen VSE Resilience
For the CESE, the success of the policy supporting small enterprises depends on a holistic and coordinated approach, centered on two main pillars:
Strengthening the internal capacities of micro/VSE/SME;
Improving their external environment through modernized governance.
Thus, the Council proposes the creation of a unique normative framework encompassing all existing support mechanisms, alongside the swift establishment of a Moroccan Small Business Act.
It also recommends the creation of an independent national body responsible for monitoring and evaluating public policies in favor of small enterprises.
Concrete Levers to Modernize Small Enterprises
Among the key recommendations from the CESE:
Map regional needs to tailor support mechanisms to local specifics;
Broaden training for project leaders by involving entrepreneur associations;
Integrate entrepreneurial skills into school and vocational training curricula, with internship opportunities;
Accelerate access to financing by considering the specificities of each category of actors (microenterprises, VSE/SME, startups);
Publish implementing texts related to the Investment Charter and support mechanisms for SMEs;
Establish a national non-financial support plan structured around the Small Business Act, incorporating local services, partnerships, and innovation.
The CESE also calls for facilitating the integration of VSEs into value chains, promoting strategic alliances, and allocating a share of public procurement to small enterprises through differentiated quotas and co-contracting mechanisms.
A Fairer and More Favorable Business Environment
To enhance the competitiveness of small enterprises, the CESE advocates for:
Strengthening the fight against corruption and unfair competition;
Simplifying and digitizing administrative procedures;
A mid-term assessment of tax reform to ease the burden on the smallest structures and restore trust between businesses and administration.
A National Vision for an Inclusive Economy
In conclusion, the 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 contribution of VSEs to national development, stimulate employment, and anchor entrepreneurial culture within the Moroccan productive fabric.
