The latest findings from the 7th edition of the “MIQYES” SME Health Barometer, unveiled on Tuesday in Tunis during a forum organized by the Confederation of Citizen Enterprises of Tunisia (CONECT), highlight the remarkable resilience of Tunisian small and medium-sized enterprises (SMEs) despite a challenging economic environment.
According to the study, 64.1% of SMEs reported profits in 2023, a figure approaching pre-COVID crisis levels, which stood at 71% in 2017. Economist Abdelkader Boudriga, who presented the barometer, emphasized that these results reflect the adaptability of SMEs in navigating both national and international economic difficulties.
Revenue Trends and Investment Priorities
The survey, conducted among 502 SMEs across multiple sectors, revealed that 31.1% of businesses experienced a decline in revenue in 2023, an improvement compared to the 43.9% recorded in 2022. However, overall economic growth remained sluggish. To sustain operations, 36.7% of SMEs prioritized investments in maintaining their businesses, while fewer than 20% allocated resources to new activities.
Looking ahead, only one in two SMEs plans to expand into new ventures. Encouragingly, women-led enterprises, which make up 12.2% of Tunisian SMEs, performed well, with 71.2% reporting profits in 2023. The study also found that Tunisian SMEs remain largely focused on the local market, with 69% operating domestically and only 12% engaging in exports.
Export Markets and Growth Constraints
For export-oriented SMEs, the European Union remains the primary destination, accounting for 57% of exports, followed by North Africa at 20%. Most exporting SMEs are based in coastal regions. However, expansion into new international markets hit its lowest level since 2016, indicating a slowdown in global outreach efforts.
SME growth is largely driven by private-sector activity, with public markets offering limited opportunities due to Tunisia’s ongoing macroeconomic and financial difficulties. In 2023, only 23.9% of SMEs secured new government contracts, while 59.1% signed new private-sector deals. The government’s cost-control policies have further restricted public procurement opportunities for SMEs.
Persistent Challenges in Accessing Financing
Access to financing remains a major obstacle for most Tunisian SMEs. Leasing continues to be the most accessible funding source, available to 55.4% of businesses. However, SMEs in inland regions, particularly in the North and Central West, face the greatest financial constraints.
Notably, 48.6% of SMEs have opted out of seeking external financing due to previous bank loan rejections and stringent lending conditions. Compared to leasing, bank financing remains difficult to obtain, further limiting growth potential for many businesses.
Job Creation and CSR Initiatives
Despite economic headwinds, 54.4% of SMEs recruited new employees in 2023, contributing to the creation of approximately 27,000 net jobs. However, the pace of hiring has slowed compared to 2022 and pre-pandemic levels, reflecting broader economic uncertainties.
On the corporate social responsibility (CSR) front, 36.1% of SMEs have undertaken at least one environmental or social initiative. However, a lack of financial resources and insufficient government support remain significant barriers to expanding CSR efforts.
Optimism Amid Challenges
Despite the economic turbulence, 60% of SMEs remain optimistic about Tunisia’s economic outlook. The MIQYES Barometer also highlights the deeply rooted family business culture in Tunisia, with 73.4% of SMEs being family-owned enterprises.
As Tunisian SMEs continue to navigate financial and operational hurdles, their resilience and adaptability remain crucial for sustaining economic stability and fostering long-term growth.
