Moroccan companies are growing more slowly than they could, held back by limited access to financing, weaker technological capacity and broader business environment constraints, according to a working paper by Bank Al-Maghrib economists.
The research, based on World Bank Enterprise Survey data covering 2010 to 2014, examines firms across the Middle East and North Africa, including Morocco.
The research finds that growth depends on a combination of internal firm strengths and external conditions, and that gaps in either area can slow expansion.
In Morocco, firms with access to formal bank financing show stronger growth in both jobs and sales. Companies with credit lines or loans expand faster than those without, while firms depending on informal funding, such as personal loans, tend to grow more slowly.
The study points to financing as a key barrier, especially for small firms. Smaller businesses are more exposed to credit constraints and less able to absorb shocks, making their growth more fragile.
Firms that invest in technological equipment, research and development, and worker training perform better than others. Even basic digital tools, such as maintaining a website, are linked to higher growth. Exporting firms and those introducing new products also expand faster.
By contrast, companies with weaker technological capabilities lag behind. The study finds that political instability and financing constraints often affect growth through the same channel: they reduce firms’ ability to build and use technology.
According to the research, younger and smaller firms tend to grow faster early on, but that growth can slow quickly. Larger firms see steadier gains over time, especially after reaching a certain scale.
Broader economic conditions matter as well. Higher inflation is linked to weaker performance, while better governance and less burdensome regulations support firm growth.
Countries with larger markets and stronger institutional frameworks show better outcomes overall.
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