FINANCIAL INSTITUTIONS AND THEIR CONTRIBUTION TO THE ECUADORIAN MICRO-BUSINESS SECTOR

REVIEW ARTICLE

Abstract

The present study was carried out with the aim of verifying the impact that financial institutions have had on the country's micro-business sector. In which through an arduous documentary historical investigation, it was evident how these institutions have contributed to this particular economic sector, through the design of a system called microfinance, which is very accessible for people with businesses or companies. little. The annualized profitability (implicit active rate) of microcredit for the financial system was 15.26%, highlighting that the highest rate among the subsystems that registered significant participation in this segment (private banks, cooperatives and public banks), was that of private banking with a yield of 21.93% (4.17 points over the performance of the financial system); 3.41 points over the performance of the Cooperatives Subsystem and 11.21 points over the profitability of the public banking subsystem. In this way contributing to national productive development. Micro and small enterprises (MSMEs) play a fundamental role in national development, because it contributes significantly to the economic and social objectives of a country. Ecuador obtained a total of 899,208 companies, of which 816,553 belong to microenterprises, representing 90.81% of the total establishments. In the economic sector, the three provinces with the highest business participation are Pichincha with 23.75%, Guayas with 18.95% and Manabí with 8.75%, and within their activities, services have a national contribution of 42.66%, followed by trade with 34.93% and agriculture, livestock, forestry and fishing with 10.38%, the remaining 12.03% correspond to manufacturing industries (8.38%), construction (3.43%) and the exploitation of mines and quarries (0.22%).

Keywords: financial institutions, contribution, microfinance, MIPYMES, productive development.