The early 80s was one of the most difficult periods for the Moroccan economy. This period was marked by a deterioration of the internal and external balances. This was partly due to the structural weakness of the Moroccan economy. Some of the causes for the structural weaknesses were: the country's dependence on the weather to produce, the less amount of phosphate resources, unfavorable economic environment with the rise in the oil prices, high dollar value, etc.
To remedy this situation, Morocco introduced the Structural Adjustment Programme (SAP) with assistance from the International Monetary Fund (IMF) and the World Bank, in 1983. This program aimed at repairing the macroeconomic imbalances and recovering from external debt. One major feature of SAP is the 'divestiture' in areas that favored employment and also social development. To fill the economic void, creating Small and Medium Enterprises (SMEs) became necessary. Several efforts have been made in this direction, and today, the SMEs occupy an important position in Morocco.
The concept of SMEs has been the subject of several definitions that vary from country to country. Even in Morocco, the definitions vary from one institution to another. The National Agency for the Promotion of SMEs (ANPME) through the SME charter defines as "any company managed and / or administered directly by individuals who are the owners, owners or shareholders, and is not held more than 25% of the capital or voting rights by one enterprise or jointly by several enterprises, falling outside the definition of an SME."
As for the Federation of SME / SMI, it is defined as a company with: less than 200 permanent employees; less than 50 million dirhams in sales; an annual balance sheet total less than 40 million dirhams; an investment cost of about 75,000 dirhams per job; no participation of a group in the capital of the SME.
SMEs also own these characteristics, it is generally characterized by the influence of the personality of the owner-manager is on it rests the whole responsibility, and it is only confronted with all kinds of management problems. Specificity is the proximity to customers can develop a personal relationship and to better identify new opportunities. To secure, it seeks a more stable environment and becomes more and more innovative. Thus, it can impose on foreign markets and contribute positively to the balance of trade balance.
Several factors are necessary for the creation and development of SMEs. One of the most important is the funding that can be described as a vital resource in a world of capital mobility, the profit motive, innovation financing means ... a response to a need created by the investment or activity of the company. This factor, given its importance in any business, has been the subject of many writings that form the basis of theoretical and practical frameworks.
This article is interested in precisely the behavior of the Moroccan SME financing. In the article, we want to know how Moroccan SMEs finance themselves. The article has tried to present the main methods of financing through a rational classification i.e. equity and debt. Then the article will try to study the behavior of Moroccan SMEs in financing. These are respectively the Financing of SMEs: Actors and Reality and the Financing of SMEs: recommendations and perspectives.
Tags: Morocco; economy; small and medium enterprises (SME) in Morocco; financing SMEs
[...] III- SME Financing: Recommendations and perspectives This is an overview to deduce recommendations and perspectives that are emerging on the horizon. III-1-Recommendations Before advancing recommendations, it seems appropriate to list the reasons that hinder the access of SMEs to finance in Morocco: The shortcomings of the legal framework and judicial system that does not guarantee help the rights of creditors; Abuses in payment practices between companies, especially defaults and excessively long maturities of loans to customers. Excessive bank requirements for safeguards, especially personal guarantees of directors; The weakness of alternative sources of funding, particularly capital and leasing; The absence of central balances at banks. [...]
[...] Other funding sources are minor. To finance the business, cash flow once again ranks first with 71% of funding for the working capital needs of companies, followed by overdraft and supplier credit or advances clients Thus, these patterns and practices of corporate finance fashion their financial structures on the medium and long term. "The companies included in the sample ICA tend to have a larger share of equity in the balance sheet on average) than those of FACS Most of these are equity contributions from shareholders and partners. [...]
[...] In addition, the average value of a security is around 230% of the average value of the loan obtained. This is still one of the highest rates. II-2-2-The other funding: Leasing Leasing is an additional financial device used to support SME financing and support their development. However, the inadequacy of the system to the needs and economic realities of SMEs limits their efficiency. The stock market: Participation in the stock market to finance SMEs is low despite tax reforms, and encourages the introduction to the Exchange. Only seven SMEs belonging to different sectors are traded. [...]
[...] Apparently, access to financing constraints is not of the magnitude described by SMEs as a major obstacle to their development. The fact is that more than 30% of recent investments which are financed by a bank loan. However, banks require collateral to offset outstanding debts crystallized due to borrower default and failure of the judicial system. This explains the increase in guarantees. Other complementary modes of financing are found inadequate to the needs of businesses. Many financial instruments have been put in place by the government, for banking and specialized financial institutions. [...]
[...] In this context, the behavior of Moroccan SMEs in financing is fairly kind, insofar as the majority of companies do not use internal funding, and neglect the external resources. The choice of funding shapes the medium and long term financial structure of the company, characterized by a narrow financial base. This attitude, which seems contradictory, can at first be explained by the heads of SMEs through access to funding constraints, due to excessive guarantees. The banks grumble about the lack of bankable files in applications for loans to SMEs. [...]
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