Analysis of the financing of Moroccan SMEs using the Moucharaka model: An optimised perspective on the divergence ratio

Abstract

Small and Medium-sized Enterprises (SMEs) are an engine of economic growth in both developed and developing countries, but they often face financing difficulties due to the reluctance of traditional banks to grant them loans. For this reason, it is important to explore other sources of funding, such as participatory financing. This study, based on the financial data of 25 Moroccan SMEs between 2018 and 2022, compared the profit rate obtained through participatory financing (Moucharaka) with that obtained through a bank loan. The results showed that Moucharaka is an effective solution for improving the economic performance of Moroccan SMEs.