Rebuilding prosperity: the role of public support in driving sustainable growth for Moroccan SMEs in the post-COVID-19 era

Purpose This paper investigates the impact of public support on Moroccan small and medium-sized enterprise (SME) growth’ metrics in the post-COVID-19 era, focusing on subsidies, guarantee schemes and incubation services, among other firm characteristics and financing choices. Design/methodology/approach The paper employed a quantitative approach, gathering data through a survey administered to 109 SME managers and chief financial officers (CFOs) in the Casablanca-Settat region. The survey was designed to capture a comprehensive range of variables related to firm characteristics, financing sources, and growth indicators. To streamline and reduce the complexity of the dataset, principal component analysis (PCA) was utilized, allowing for the identification of key underlying factors. Following this dimensionality reduction, several ordinal probit regression models, including a stepwise approach, were applied to examine the relationship between the identified factors and the growth metrics of the SMEs. This multi-model strategy enabled the identification of the most significant determinants across various growth metrics, ensuring a robust and nuanced analysis of SME growth. Findings Our findings paint a complex picture: subsidies play a positive role in boosting sales and added value but don’t strongly impact job growth. Guarantee schemes help SMEs grow their workforce and sales but have a smaller effect on net income and added value. Incubation programs show limited impact overall, hinting at a need for stronger ongoing support. Financing options offer only modest growth benefits, while factors like family involvement and effective human resource practices stand out as key growth drivers. Innovation contributes gradually, underscoring the importance of a steady, long-term approach to supporting SMEs. Research limitations/implications It is crucial to acknowledge that this analysis is conducted within the post-COVID-19 context, a period marked by significant instability, uncertainty and a lack of visibility for firms and economies worldwide. Therefore, the results cannot be generalized. Another limitation of our work is its geographic focus, which is confined to the region of Casablanca-Settat. This regional limitation may restrict the generalizability of our findings to other areas within Morocco or to different countries with varying economic environments and policy frameworks. Practical implications The findings of this study suggest actionable steps for policymakers and public actors aiming to enhance SME growth. Tailoring credit guarantee schemes to the specific needs of SMEs across various sizes and sectors can improve financial accessibility, while fostering stronger collaboration between public entities and financial institutions ensures consistent and responsive credit flows. Additionally, strengthening incubation programs with strategic financial guidance and capacity-building initiatives can empower SMEs to build sustainable financial foundations. Originality/value This research provides valuable guidance for policymakers and managers aiming to reinforce the resilience and stimulate the growth of Moroccan SMEs in a dynamic economic environment. Also, it's the first of its kind to our knowledge in the context of a developing country.