The continuation of “investment methods” increases the death of emerging projects in Morocco
The “investment modes” have spread to Morocco, after a large number of investors rushed into certain sectors without sufficient study, which led to their heavy losses. In the luxury real estate sector, exaggerated expectations led to a drop in demand after 2015, leaving many of these investors with real estate that is only for sale with loss. The same goes for peasants, because the “lawyer” boom and almonds attracted rapid profit, but the rarity of water and high costs were harmful to calm and lost hectares of the cultures of its profits.
During the last decade, investment in the “franchise” (commercial concession) has become a fashion in Morocco, where many people rushed to open branches of international restaurants or famous cafes, in the hope of reaching rapid profits, influenced by the idea that was promoted by “Al Frances” concerning the study “the medium, they collided with an insufficient request Marks, which led to the closure of certain branches after only opening months, in addition to other problems related to the high costs of the brand, rental and imported materials, which made it difficult to achieve sustainable profits, in the light of fierce competition with Moroccan projects with stronger scholarships than they expected.
To avoid falling into the trap to invest in “fashion”, which is often motivated by the noise of the media and temporary waves, economic experts and specialists in the conduct of contracts have alerted the need for a rational and studied approach, which involves a deep market study to understand the level of demand and the availability of production factors, which guarantees that the investment decisions are taken on actual data and emotional; In addition to the need to be wary of commercial “propaganda” and deceptive advertisements which aim to create the illusion of rapid profit, by emphasizing sustainable investment which reaches real long -term value, whether in terms of innovation or social and environmental influence, as the best way to build a stable wealth and to avoid losses resulting from temporary fluctuations.
“Social media” abandoned investors
Social media has greatly contributed to strengthening the “fashion” of investment in certain fields, because it has become a major platform to publish information and promote investment opportunities. Thanks to varied content, whether articles, videos or publications, certain sectors are highlighted as profitable and promising, which has prompted many investors, in particular new, to go to these areas without depth study. For example, Morocco has seen in recent years a widespread promotion on social media to invest in luxury real estate, which has led to an unrealistic prices increase, before demand drops, leaving many real estate investors which is difficult to sell without loss.
In this regard, Yunus Ait Ahmadoush, university professor in the macroeconomic and financial economy, explained, commenting on an analysis that he accomplished under the title “Running Behind the Investment Fashion in Morocco: certain lessons in reality”, that “social media depends on the psychological impact of common content, where the broad spread of investment; not the full reality of the market.
Ait Ahmadoush underlined, in a declaration in Hespress, the big role played by digital influencers in the realization of interests of investors towards certain fields, explaining that “when a person having a great influence promotes an investment opportunity, his followers can see a reliable recommendation, which leads them to invest without sufficient research”, noting that many brands in Forceco propagate in the “franchise” The world is sold; However, some projects have been faced with problems, such as poor local demand and high costs, which led to their closure in a few months after their opening.
The same spokesperson considered that “inaccurate or exaggerated information spread over social media can sometimes lead to misleading investors. Or mismanagement.”
Several project failure factors
Many factors contribute to the failure of newly established projects and investments, the most important of which is the blind tradition, because investors reproduce successful projects without a real feasibility study or an understanding of the target market, which often leads to entering the market with products or services that do not meet the needs of customers, which ends with the project. For example, Morocco attended a boom in the opening of famous cafes and restaurants for the world’s brands, but many of them were forced to close quickly due to the strong competition from the lowest local brands, which adapt better to the purchasing power of the Moroccan consumer.
The professor of macroeconomic and financial economics has returned to emphasize that “the lack of vital information is another important factor in the failure of projects”, explaining that “the lack of sufficient information on the market and competitors, and the needs of customers it is difficult for investors to make informed decisions” the fact that the market is dominated by strong importers and well -known marks, which has made their market and has entered the market almost impossible and quickly bankrupt.
For her part, ibtisam mumkouri considering an accredited accounting and consultant in the conduct of contracting, in a statement to hespress, that “The Failure of Many Projects in Morocco, Especially in the Emerging and Industrial Sectors, is closely related to fandamental factors related to the Financial Management of the Contracting and Legal And administrative challenges, “Explaining that” When Talking about Financial Resources Management can be registered significantly among investors at the level of contracting culture, and separation between personal financial disclosure and contractual accounts, where investors, in particular new entrepreneurs, “make fatal errors,” noting that ” Confusion in liquidity management, which makes the project incapable of covering operational costs, in particular in critical stages which require financial stability to ensure the continuity of activity. “”
Malekouri Added in the same context: “In addition, the poor allocation of the budget is one of the decisive factors that may accelerate the collapse of projects,” Inferring What the Kingdom Witnessed During the Recent Years of Startups in the Technology Sector, Has Obaineed Promising Initial Funds, Focus on costly marketing campaigns and rapid expansion without achieving a sustainable income base, and confirmed that “this approach led to the depletion of financial resources in record time, some, he forced these projects to close before being able to make any tangible return. »»
The same expert explained that “with regard to legal and administrative challenges, it represents a major obstacle to investors, in particular in the industrial sector. The slowness in the administrative procedures and the complexity of the leaders linked to obtaining the necessary licenses and permit, often lead to delaying the launch of projects for long periods, which leads to an increase in operational costs, and the capacity of the project to resist long -term financial burdens, so that a certain number of investors have to abandon their entire projects after years of waiting and confrontation of the ball.
