Contracting suffocation tests the Ministry of Finance… and professionals enumerate the factors of bankruptcy

It seems that Morocco has not yet been able to solve the equation that concerns maintaining the continuity of companies created every year, as bankruptcy is still hovering over the heads of a number of these institutions despite the high rate of establishment, which reached 24,896 companies during the first three months of the year 2024, from Among them are 17,948 enterprises for legal persons and about 6,948 enterprises for private persons.

The Moroccan Office for Industrial and Commercial Property revealed that the Rabat-Salé-Kenitra region alone acquired up to 2,915 new companies during the same period of time, including 2,192 private companies and 723 legal companies, with Rabat topping the number at the regional level.

In contrast to these seemingly “important” numbers, the “ghost of bankruptcy” appears, which struck up to 14,000 companies last year, while professionals confirm that the real number ranges between 34 and 40,000. While a study by the global leader in credit insurance, “Allianz Trade,” expected that the total number of bankrupt companies would reach 16,100 companies this year, an increase estimated at 13 percent compared to last year.

Younes Al-Skouri, Minister of Economic Inclusion, Small Enterprise and Employment, has often faced questions at the parliamentary level about the factors behind this “huge” figure, which also contributes to the exacerbation of unemployment rates. These questions include a call to “reveal a package of measures to reduce the numbers.” Or at least install it.”

Bankruptcy factors

According to Abdullah Al-Farki, who holds the position of President of the Moroccan Confederation of Very Small, Small and Medium Enterprises, “the number of bankrupt enterprises last year is about three times the numbers revealed by Inforesk, as we are now talking about a number ranging between 34 and 40 thousand bankrupt enterprises, instead of 14 thousand mentioned in some reports,” adding: “These data do not indicate that the number of 14 thousand concerns only companies of a moral nature (SARl), while we have a majority for companies of a personal nature.”

Al-Farki revealed to Hespress that “a number of very small enterprises are not counted, whether by Inforesk or by the Intellectual and Industrial Property Office or the courts, especially those in the rural world, where they rely solely on the commercial registry for their work,” explaining that “the first worker to stand The reason for the large number of bankruptcies is related to the fact that this group is deprived of financing. Even some programs that were granting 1.2 million dirhams have been stopped, while major companies currently benefit from large investment funds, which shows that there is a big difference between the two categories.”

The same spokesman stated that “the second factor is related to raising taxes to 20 percent compared to 10 percent in the past, which reduces the chances of success for a number of enterprises, especially if we link the matter to the failure of very small, small and medium enterprises to benefit from the public contracts that the enterprises have now acquired.” The largest, at a time when it was necessary to grant it the legal 20 percent,” he continued: “Since 2013, we have lost up to 600 billion dirhams,” concluding that “reducing enterprise bankruptcy each year depends on reconsidering these three factors that stand behind the lack of continuity.” Contracting in Morocco.

Subjective and objective

As an academic and expert in the economic field, Abdel Khaleq El-Tohamy stressed that “the high rates of bankruptcy remain normal if we recall the high rates of business creation, especially if it is within reasonable limits, while if it represents a high rate, then it will be worrying, at a time not exceeding Moroccan small enterprises have two to three years to go before declaring bankruptcy.”

The spokesman pointed out, stating to Hespress, that “the majority of these companies are no more than three years old, as they face problems in traffic for about four years, while most of them are not of great self-esteem and are able to guarantee their continuity within the market that is witnessing major changes,” continuing. “These companies cannot always rely on financial funds; “It can do this at the foundational stage.”

In addition to what Al-Farki said, Al-Tahami confirmed that “bankruptcy rates are linked to constraints related to accessing the necessary financing, entering markets, and accessing public deals, in addition to intrinsic constraints related to the fact that a number of individuals establish their companies without prior study or preparation, as the given regarding the fact that preservation The continuity of the enterprise is more difficult than its creation, given that it requires the availability of a set of subjective and objective conditions.”