A landmark national study has pulled back the curtain on Morocco’s economy, revealing that family-owned enterprises are its primary engine, accounting for over 92% of all businesses and 65% of the workforce. The report, unveiled by the Institut de l’Entreprise Familiale Maroc (IEF-Maroc) and the International Finance Corporation (IFC), quantifies the sector’s immense contribution while simultaneously sounding the alarm on a critical vulnerability: the vast majority do not survive long-term.
Quick Facts
- Constitute 92.9% of Morocco’s total businesses.
- Employ nearly 65% of the country’s workforce.
- Only 15% survive to the third generation.
The Numbers Behind Morocco’s Economic Engine
After two years of research, the study provides hard data for what was long suspected—family businesses are central to the kingdom’s economic stability and growth. These firms generate 60.5% of the national value added and employ approximately 6.3 million people.
The report also offers a granular view, noting that nearly three-quarters of these enterprises are classified as very small, small, or medium-sized, highlighting their deep integration into local economies and regional development across the country.
An Economic Tragedy: The Generational Cliff
Despite their economic dominance, the data reveals an existential threat. A staggering 85% of Moroccan family businesses fail to transition to the third generation, and only 5% have been in operation for over 50 years. The average age of these companies is just 24.2 years.
Kacem Bennani-Smires, President of IEF-Maroc, stressed that this challenge extends far beyond individual families. “The family business is not merely a family matter – it concerns the entire economy and the country as a whole,” he stated.
Bennani-Smires described the high failure rate as “a genuine family and economic tragedy,” warning that failed successions lead to job losses, the erosion of strategic skills, and the disappearance of accumulated expertise.
A Call for Governance and Global Expansion
The findings have prompted calls for action from both government and international partners. Ryad Mezzour, Morocco’s Minister of Industry and Commerce, described family firms as “the backbone of Moroccan commerce and the national economy.” He urged business leaders to accelerate international expansion, develop proprietary brands, and adopt new technologies like artificial intelligence to remain competitive.
Cheick-Oumar Sylla, IFC Regional Director for North Africa, noted that the study validates the World Bank Group’s focus on supporting private-sector development in the region by translating long-held beliefs into objective data.
For leaders within the sector, the path forward involves improved governance and shared knowledge. Othman Benkirane, CEO of Kitea Group, highlighted the importance of peer exchange within IEF-Maroc for navigating leadership transitions. The study identified stronger succession planning, better access to finance, and support for digital transformation as key priorities.
About Institut de l’Entreprise Familiale Maroc (IEF-Maroc)
The Institut de l’Entreprise Familiale Maroc is a Moroccan organization dedicated to supporting and promoting family-owned businesses within the kingdom. It conducts research, facilitates peer exchange, and advocates for policies that address the unique challenges of family enterprises, particularly concerning governance, financing, and intergenerational succession.
Source: Morocco World News
