Morocco is grappling with a significant economic challenge, despite having hundreds of thousands of small and medium-sized enterprises (SMEs) and a few large companies, often subsidiaries of foreign groups or heirs to historical concessions. The country's economic fabric lacks a crucial segment: intermediate-sized enterprises (ETIs), which form the backbone of developed economies. These ETIs, typically employing between 250 and 5,000 people, play a vital role in innovation, exports, and job creation.
In contrast to Morocco, other countries have a more developed ETI sector. Germany, for instance, has around 12,000 ETIs, while France has over 5,000. These enterprises are crucial in employing qualified active personnel and driving economic growth. However, in Morocco, this segment is underdeveloped. According to Mostafa Mounasser, a contributor to La Nouvelle Tribune, the issue lies not in financing, regulation, or leadership training, but in a phenomenon he has observed firsthand: most Moroccan SMEs grow without undergoing a transformation.
Mounasser notes that Moroccan SMEs often expand from 10 to 30, then to 60 employees, without changing their business model, approach, or leadership style. The entrepreneur remains at the center of all decision-making, and communication is often informal. This organizational structure works until the company reaches 30 or 40 employees, but beyond that, it becomes ineffective. As the company grows, top performers leave due to limited opportunities for advancement, and decision-making slows down as all major decisions require the entrepreneur's input.
The consequences of this stagnation are significant, not only for the businesses concerned but also for the broader economy. As SMEs fail to transform into ETIs, they miss out on opportunities for innovation, export growth, and job creation. The entrepreneur, overwhelmed by the demands of a growing business, may conclude that the market is challenging or that finding competent personnel is difficult. However, Mounasser argues that the issue lies not with the market or personnel but with the company's structure and leadership.
According to Marshall Goldsmith, a renowned leadership consultant, "What got you here won't get you there." In the context of SMEs, this means that the skills and reflexes that enabled the entrepreneur to build the business initially will not suffice as the company grows. The entrepreneur must adapt and develop new skills, such as delegating decision-making authority, attracting and retaining talent, and establishing a culture that is not solely dependent on their personal leadership.
The transformation required to transition from an SME to an ETI demands a different kind of work from the entrepreneur. It involves building an organization that can function effectively without the founder's direct involvement, attracting and retaining talent, and maintaining a culture that is not solely dependent on the entrepreneur's personal vision. However, many entrepreneurs in Morocco fail to make this transition, which has significant economic costs.
The cost of this failure is not limited to the individual businesses; it also has macroeconomic implications. Morocco's inability to develop a robust ETI sector hinders its economic growth, innovation, and job creation. As the country seeks to address these challenges, it must focus on supporting entrepreneurs in their transition from SMEs to ETIs, enabling them to build more competitive, innovative, and sustainable businesses.
Key points
- Moroccan SMEs struggle to grow due to a lack of transformation in their business model, leadership style, and organizational structure.
- The country's underdeveloped ETI sector hinders its economic growth, innovation, and job creation.
- Entrepreneurs must adapt and develop new skills to transition their SMEs into more competitive ETIs.
