Entrepreneurship Landscape in Morocco: Insights into Trends and Disparities

Saturday 09 December 2023 - 10:36

The entrepreneurial landscape in Morocco presents an intriguing diversity, with 9% of the population already engaged in entrepreneurship and 16% considered potential entrepreneurs. These figures, although in line with other North African countries, are lower than those observed in East Asia and Latin America, regions with intermediate income levels.

Internationally, the variability in entrepreneurship rates among individuals aged 18 and above is noteworthy. In Egypt, Morocco, and Tunisia, established entrepreneurship rates hover around 10%, comparable to countries like India and China but below those in Senegal, Ecuador, and Brazil, reaching nearly 20%.

The study reveals that established entrepreneurs constitute 25% of employment in Morocco, while potential entrepreneurs make up 10% of the inactive, 39% of the unemployed, and 28% of wage workers. Among established entrepreneurs, 43% are opportunity-driven, while 57% are necessity-driven, limited by the lack of salaried opportunities.

On the potential entrepreneurs' side, about 40% are in gestation, having initiated actions to start a business, while 60% are latent, yet to take concrete steps. Overall, men are more involved in entrepreneurship than women, representing 59% of potential entrepreneurs and over three-quarters of established entrepreneurs (78%).

Regarding urban and rural areas, the rate of established entrepreneurs is similar to the national average, at 9%. However, the rate of potential entrepreneurs is higher in rural areas, reaching 20%, compared to 14.7% in urban areas. This disparity may reflect a higher proportion of entrepreneurs in ideation in rural areas, potentially illustrating the lack of opportunities in wage employment. Thus, the rural entrepreneurship rate stands at 29%, while the urban rate is 24%.