Difficulties in accessing financing for Moroccan SMEs, causes and alternative in Islamic finance

Abstract

SME occupy an important place in the Moroccan economy. This importance comes from the fact that they have irreplaceable assets that make them an undeniable tool for the economic and social development of any country. However, this type of company encounters several problems at all levels: administrative, financial and even at the management level. In fact, the financing problem is considered as the major challenge that SMEs must overcome. This article studies the possibility of considering some participatory finance products as a solution to the problems encountered by Moroccan SMEs when accessing finance. To do so, a survey carried out among SMEs in the province of Kenitra in order to identify the problems related to financing Moroccan SMEs, the modes of financing most used by this type of firm as well as their expectations regarding participatory finance. The data collected through the survey was subjected to analysis using crosstabs. The results obtained show that the major problem encountered when applying for financing is the high cost of the products offered as well as the lack of a product that respects the specificities of SMEs. They also show that this population considers that participatory finance can constitute a real alternative for financing SMEs.

JEL Classification: M13

Paper type: Empirical research.