Abhatoo - Centre Nationale de Documentation

This study provides a comprehensive contextual analysis of the Moroccan SME financing landscape, with a particular focus on addressing the undercapitalization issue as a significant barrier to their growth and sustainability. The research fills a gap in understanding how the structural limitations and unique characteristics of Moroccan SMEs hinder their ability to access and effectively utilize financial resources, particularly within the traditional banking system. The primary goal of the study is to critically evaluate the predominant reliance on bank credit for SME financing, identifying the challenges posed by risk perceptions, information asymmetries, and the constraints imposed by monetary policy and banks’ regulation. The study utilizes a rigorous evaluation of both traditional and alternative financing mechanisms, such as participatory banks, the stock market, and private equity. It also includes an overview of the increasing role of public actors and the forms and intensity of government support provided to Moroccan SMEs. The findings offer actionable policy recommendations aimed at enhancing the effectiveness of the SME financing ecosystem. Our study emphasizes the need for targeted government interventions and institutional reforms while proposing future research directions to build on the insights gained from this analysis.