Exploratory Qualitative Study on the Impact of Business Angel Involvement on the Entrepreneurial Success of Backed Start-ups in Morocco (International Journal of Accounting, Finance, Auditing, Management and Economics)

Summary

• The study investigates the relationship between business angel (BA) involvement and the entrepreneurial success of financed startups through an exploratory qualitative approach in Morocco.p.2
• The qualitative sample is built on 12 semi-structured interviews comprising 6 startup founders and 6 business angels active in Morocco.p.8
• The initial startup database derived from the television show 'Qui va investir dans mon projet', where 9 450 000,00 Dirhams was invested across 15 startups in season 2020 and 10 700 000,00 Dirhams across 14 startups in season 2021, totaling 29 funded startups.p.7
• A screening of Moroccan angel networks including ANGELS4AFRICA, MOBAN, and MNF along with TV show participants identified a total list of 63 business angels.p.8
• The theoretical framework builds on the four dimensions of Politis (2008), which recorded 322 citations as of 18 Janvier 2024.p.3

Key insights

1. Business angel involvement in Morocco positively impacts funded startups primarily through strategic resonance, resource acquisition, and mentoring.p.15
2. Disciplinary supervision and monitoring are often perceived negatively by Moroccan entrepreneurs as an intrusive burden that can hinder project continuity.p.13
3. Entrepreneurs and business angels characterize startup success through both economic measures (revenue growth, headcount, profitability) and non-economic measures (founder satisfaction).p.11
4. Respondents generally expect the tangible signs of startup success to appear early, typically within a timeframe not exceeding two years.p.11
5. To reduce agency costs and potential friction, Moroccan business angels and founders frequently utilize a standard shareholder pact contract template defining governance and control terms.p.13
6. Entrepreneurial commitment, particularly its normative moral dimension, emerged as the dominant factor driving the quality of BA involvement and venture success.p.14