A Look at Entrepreneurship in Morocco: Where Can Startups Turn for Help?
Entrepreneurs in Morocco today face several challenges: meeting mentors and investors, finding a suitable office space, building partnerships, recruiting cofounders, and just having a community space to meet and share. But according to Karim Jazouani, co-founder of Moroccan startup and tech blog Thenexties.com, there is a lot that can be done to meet these needs.
Below we outline some of the major hurdles facing Moroccan entrepreneurs today and discuss how to overcome them.
Moroccan entrepreneurs need affordable places to work.
Premises in Morocco are expensive and hard to find. There are a
few places in the country that offer offices in technology hubs
such as Technopark in
Casablanca (and soon in Rabat) or Rabat Technopolis, but the prices
are prohibitive for many young entrepreneurs. "As a young
entrepreneur, the only option is to work from home or in a friend’s
office," says Karim Jazouani,
Last year, Casablanca’s first coworking place
launched. iNSANE! quickly
become the go-to location for local events and
the TEDxCasablanca Salon, but then, after a
duration of free rent expired, they faced issues finding a location
with affordable rent. Today, iNSANE! is looking for a new
location, but the team is hoping that they won't have to increase
their fee structure.
Moroccan entrepreneurs need investment.
Like many investors in the Middle East today,
investors in Morocco are culturally cautious and try to avoid
ventures with an uncertain return on investment (ROI). The only
option for many young entrepreneurs is to turn to institutional
funding such as Maroc Numeric
Fund, a venture capital fund that focuses on early stage
startups, and the Centre Marocain de l'Innovation, a government-backed
fund that finances innovative projects at both the startup and
growth phases.
Moroccan entrepreneurs can also turn to regional funds and VCs, like Wamda Capital, that are open for investment in the Arab world.
Morocco will need a lot of evangelization to transform
mentalities and enable more private investment, says Jazouani.
Backing and coaching young startups could alleviate investors’
concerns, he says, so building more incubators and coworking spaces
is essential.
Moroccan entrepreneurs need mentors.
"We have very few mentors," Jazouani says
emphatically. According to him, Moroccan entrepreneurs will need to
learn how to share knowledge in order to attract international
mentors. Again, the role of coworking spaces cannot be
underestimated. iNSANE! hosted several new events last year
including Pitch Please!,and BeMyApp Weekend, which are essential for
bringing together a real startup scene.
With the same goal in mind, this year Wamda is organizing the first ever Mix N’ Mentor Casablanca to bring together entrepreneurs to meet mentors in a close personal setting.
Morocco needs organizations that are both urban and
rural.
"Morocco is mostly a rural country. We need to promote
employment and self-entrepreneurship to young unemployed
Moroccans. That’s the main issue we have to work on,"
Jazouani stresses. Instead of just building up and supporting
entrepreneurs in Morocco's major cities, it's important to empower
entrepreneurs in rural areas as well.
Who's Supporting Startups?
Fortunately support organizations are growing. About a month
ago, the first incubator launched in Casablanca: La Boutique de
Startups.
For a 2000 MAD (US $230) entry fee, La Boutique gives
young entrepreneurs a place to work for six months, offering 18
workstations, a meeting room, and a secretary, and it will offer
legal counsel, accounting services, and coaching from a team of
mentors that the founder, Anasse Elkhadiryene, is currently
assembling. At the end of those six
months, Elkhadiryene, who comes from an investment
banking background, will organize an angel investor pitch
event. Thus far, two startups have joined.
Other support organizations include Le Centre d'Investissement Régional, which helps entrepreneurs with the administrative creation of their company, and The Young Entrepreneurs Foundation, which helps young entrepreneurs develop their projects.
Once startups are up and running, they can ask for funds at
Maroc Numeric Fund and
the Centre
Marocain de l'Innovation. But those two funds are
government-backed; much more support from the private sector could
be transformative.
The ecosystem is off to a good start, it seems, but further support
and momentum will be critical to prevent collectives like iNSANE!
from dying off due to a lack of funding. The success of La Boutique
des Startups will also depend upon its ability to collect mentors,
but the next question is, when will Morocco get its first tech
accelerator?