Small businesses confederation says new investment fund marginalizes smallest players

The Moroccan Confederation of Very Small, Small and Medium Enterprises is sounding the alarm over the government’s new investment support fund, saying the policy is being promoted as help for small enterprises but is actually shutting out the country’s tiniest firms, the ones that make up almost all of the national economy.

In a statement, the confederation said the fund’s rules don’t match the government’s message. The biggest issue, they say, is the requirement for applicants to invest at least MAD 1 million. 

According to the group, this single condition instantly disqualifies around 99% of very small businesses, which simply don’t have the financial capacity or the collateral needed to access bank loans. 

Banks, they added, still classify these firms as high-risk and charge them higher interest rates.

The confederation pushed back against recent comments by the head of the government, who suggested that very small businesses have easy access to bank financing and public support. 

The group says this doesn’t reflect the reality faced by thousands of young entrepreneurs dealing with constant barriers, daily stress, and discouraging loan rejections. 

The confederation warna that such official statements only deepen frustration among small business owners and reinforce their sense of exclusion.

Beyond financing, the group says current tax policy is making things worse. Taxes on very small businesses jumped from 10% to 17.5% in 2024 and are scheduled to reach 20% by 2026, the same rate applied to large companies, which recently benefited from major tax cuts. 

For the confederation, this widening gap shows an unfair system that drains the smallest players while leaving them without the support programs they once relied on, such as “Intilaka” and “Forsa.”

If nothing changes, the confederation warns the country could see the rise of a nationwide protest movement among very small businesses, especially if they continue to be left out of major economic discussions held between the government and large-business lobbies.

The confederation is calling for an urgent overhaul through lower eligibility thresholds for the fund, simpler administrative procedures, faster payment of public contracts, and stronger technical and training support. 

The confederation also seeks a full national dialogue that includes civil society and young entrepreneurs, along with structural reforms, including the creation of a public bank dedicated to very small businesses.