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Confederation of Very Small, Small, and Medium Enterprises Sounds the Alarm: Mass Bankruptcy Threatens 83% of the Workforce in Morocco
The Moroccan Confederation of Very Small, Small, and Medium Enterprises has painted a grim picture of the national business landscape, revealing a shocking tally for 2025 that recorded 52,000 bankruptcy cases. The seriousness of these figures is underscored by the fact that 99% of these failing enterprises belong to the very small business category, posing real challenges to the national economy given the vital role this group plays in absorbing unemployment and achieving growth, representing over 98% of total businesses and employing more than 83% of the workforce in Morocco.
The Confederation attributes this downward trend to a range of structural and tax constraints that have suffocated small businesses, chief among them the concerning anticipation of a tax increase from 10% to 20%, coinciding with the cessation of crucial financing programs that served as lifelines for this sector, such as the “Initiation” and “Opportunity” programs. Compounding the situation, beneficiaries of the “Initiation” program have found themselves caught in a cycle of legal proceedings due to what the Confederation describes as the banks’ obstinance and the neglect of government institutions in fulfilling their support and guidance commitments, with most banking institutions refusing to restructure loans for beneficiaries suffering from severe financial crises.
In terms of public policy, the report expresses deep dissatisfaction over the exclusion of this group from the new Investment Charter, which imposed conditions deemed by the Confederation as impossible to meet, including the requirement to invest no less than one million dirhams to benefit from government support—an essential point of contention with the government. Moreover, these small enterprises continue to be deprived of their legal share of 20% of public tenders, due to the absence of implementing decrees for a regulation dating back to 2013, which excludes smaller players from government contracts predominantly controlled by larger operators.
The crisis does not end with funding and legislation but extends to the issues of insolvency and the accumulation of debts arising from the delays by major companies and public institutions in settling the dues of smaller enterprises, leading in many cases to the sudden collapse of businesses that had orders but lacked cash flow. All of this occurs at a time when the repercussions of the COVID-19 pandemic, consecutive years of drought, and inflationary pressures continue to cast a shadow over the ability of these businesses to endure, amid a lack of tangible administrative facilitation from tax authorities and social security funds.
As we enter 2026, pessimism looms over the expectations of industry players who believe that the continuation of these policies could lead to a greater bleed in the national business fabric. The Confederation rings the alarm regarding the forthcoming outlook, warning that the absence of prompt government intervention to reconsider the conditions of the Investment Charter and provide realistic financing solutions will turn the new year into a continuation of the bankruptcy saga that threatens social peace and the economic stability of small entrepreneurs and beneficiaries of the self-employment system.
