Journal of Business and entrepreneurial
January . March Vol. 8 - 1 - 2024
http://journalbusinesses.com/index.php/revista
e-ISSN: 2576-0971
journalbusinessentrepreneurial@gmail.com
Receipt: 09 July 2023
Approval: 11 December 2023
Page 41-60
Financing and profitability of commercial
enterprises in La Libertad, 2022
Financiamiento y rentabilidad de las empresas comerciales
del cantón La Libertad, 2022
Dayse Lissette Salazar Reyes
*
Maria Fernanda Alejandro Lindao
*
ABSTRACT
Financing is very important for the operation of
commercial enterprises, its proper management
through loans allows resources to be invested for the
expansion of business; therefore, the resources
obtained from different sources of financing must be
managed properly with the intention to ensure a
profitability of considered levels. The purpose of this
article is to determine how financing affects the
profitability of commercial enterprises in the canton
of La Libertad, through the analysis of each of the
indicators of the variables of study, therefore a
descriptive research was used through the
desegregation of variables, and situational analysis of
the object of study, applying the techniques of
interviews and direct observation, in addition
correlational research was used to determine the
critical factors associated with financing and
profitability, through surveys of the companies that
were part of the study. The results obtained show
that the accounting that the companies are doing is
empirical and not very technical, which has caused
them to grow slowly compared to medium-sized
companies of the same type, which through adequate
* Bachelor in Accounting and Auditing graduated from Santa
Elena Peninsula State University, Master in Accounting and
Auditing from Santa Elena Peninsula State University, currently
works as Assistant of the Financial Area of Disensa Beltrán
Company. Orcid: 0009-0001-8619-1578
*
Bachelor's degree in accounting and auditing from Universidad
Laica Vicente Rocafuerte de Guayaquil, Master's degree in
business administration from Universidad Politécnica Salesiana,
Master's degree in accounting and auditing from Universidad
Laica Vicente Rocafuerte de Guayaquil. Orcid: 0000-0003-0938-
4488
e-ISSN: 2576-0971. January - March Vol. 8 - 1 - 2024 . http://journalbusinesses.com/index.php/revista
42
financial management has favored their sustainable
growth and decision making.
Keywords: Corporate finance, organizational
performance, financial management, profitability
indicators, profitability, profitability
RESUMEN
El financiamiento es muy importante para la
operatividad de las empresas comerciales, su
adecuada gestión mediante prestamos permite que
los recursos sean invertidos para la ampliación de los
negocios; por lo tanto, los recursos obtenidos de las
distintas fuentes de financiamiento deben de ser
administrados de manera adecuada con la intención
que asegure una rentabilidad de niveles
considerados. La finalidad de este artículo es
determinar de qué manera incide el financiamiento
en la rentabilidad de las empresas comerciales del
cantón La Libertad, á través del análisis de cada uno
de los indicadores de las variables de estudio, por
ello se empleó una investigación descriptiva mediante
la desegregación de variables, y el análsisis situacional
del objeto de estudio, aplicando las técnicas de
entrevistas y observación directa, además se empleó
la investigación correlacional, para determinar los
factores críticos asociados al financiamiento y a la
rentabildiad, mediante encuestas dirigidas a las
empresas que formaron parte del estudio. Los
resultados alcanzados evidencian que la contabilidad
que están llevando las empresas es de manera
empírica y poca técnica, lo que ha incidido que
crezcan a paso lento en comparación a las empresas
del mismo tipo de tamaño mediano; que a través de
una adecuada gestión financiera ha favorecido para su
crecimiento sostenible y para la toma de decisiones.
Palabras clave: Financiamiento empresarial,
desempeño organizacional, gestión financiera,
indicadores de rentabildiad, rentabildad
e-ISSN: 2576-0971. January - March Vol. 8 - 1 - 2024 . http://journalbusinesses.com/index.php/revista
43
INTRODUCTION
According to Abdulla Y. (2020), adequate financial management and correct decision
making should contribute to the solution of problems, through the implementation of
coordinated and planned processes, in order to foresee risk situations in the future;
therefore, managers should apply the financial and administrative tools that best fit the
needs of the business line, in some cases they will be: inventories, in others their
customers, or perhaps an adequate financing, through a correct control methodology
that allows decision making in a more founded and planned way.
Globally, companies that enjoy success are those that carry out an efficient
administration, because they apply an adequate financial analysis at all levels of operation;
however, small and medium-sized companies called SMEs do not enjoy efficient
administrative and financial management, therefore they present problems of
unsustainability, when economic crises are evident worldwide and nationally their
weakening is much greater, because they cause increased unemployment, as SMEs are
the largest producers of employment in the country. (Asobancaria, 2019).
According to Rodríguez Morales, (2022) Ecuador is one of the Latin American countries
with growth of small, medium and micro enterprises, especially in the commerce sector;
however, not even with the increase in business they have guaranteed their high
productivity, but there is evidence of a low level of efficiency achieved against their goals,
so this negative aspect is an object of research by international organizations such as
ECLAC.
In the Latin American business world there is discrimination and an unfair problem
regarding the marked segmentation of financial markets that exists towards SMEs, which
is reflected in the different interest rates of loans according to the size of the company,
as well as the low participation of SMEs in the access to credit by the private sector, the
extensive use of suppliers and self-financing capacity, are almost inaccessible; It is a titanic
task to obtain working capital for operations and investments, situations that reflect the
difficulties that SMEs still suffer today in accessing credit.
According to the study conducted by the Universidad Andina Simón Bolívar and Young
Business, through the topic: "Current situation of entrepreneurship, public and private
actors" with source of Altamirano & et al, (2017) it is determined that only 37% of the
new ventures analyze the adequate financing offers existing in the financial market;
therefore, the rest of the ventures are immersed in the problematic of financing of loans
and unsuitable and non-formal credits; by not having access to adequate financing
sources, it does not allow them to be competitive in the market and their levels of
dynamism are low.
The consequences of the problems in obtaining financing for SMEs are significant, which
has led to the existence of several programs to remedy them, as well as credit rationing
hinders investment processes to improve production capacity or make new innovations
and finally, in more critical cases, leads to the closure of companies, causing fewer
companies to be born and slowing the emergence of new ventures such as Star-Up,
e-ISSN: 2576-0971. January - March Vol. 8 - 1 - 2024 . http://journalbusinesses.com/index.php/revista
44
which in their initial phase of development require venture capital and financing
mechanisms.
According to Amado, (2017) economic profitability has become a basic indicator to
measure business management, which establishes that if the behavior of asset accounts
has been managed independently of financing, it would be a profitable company; on the
contrary in an unprofitable company for the permanence of its assets financing is
required, in this sense it is necessary to analyze whether the problem arises from
problems in the development of its economic activity or from a deficient financing policy.
In Ecuador, most companies seek various forms of financing, because they cannot finance
themselves directly, in this context there is formal and informal financing; due to the
existing barriers in financing for SMEs, they end up opting for the second option, which
makes them end up over-indebted, in addition to the fact that they do not have a correct
administration; Most of the time it is done in an empirical way, in addition to the fact
that the personnel is not qualified in their areas, especially in the administrative and
financial ones, that is why this study by obtaining the results will allow to place in the
environment of decisions that the companies are carrying out, as well as to know the
impact of the decision making.
For large companies as well as for SMEs it is very important to have sources of financing
to ensure their growth, from the capital lent by banks to private capital in exchange for
ownership participation, have been resources that allow the expansion, permanence,
development and innovation of companies, especially in the initial stages; however, in
the business world as the Latin American there is difficulty in accessing the different
types of financing, so governments have had to intervene through various policies to
compensate to a lesser extent the absence of funding (Bazerque, Orueta, & Echagüe,
2017)..
This study was carried out in the canton of La Libertad, considered the economic capital
of the province of Santa Elena, since most of the commercial, port, fishing and banking
companies are located there, in addition to being the urban canton with the largest
number of inhabitants compared to the canton of Salinas and Santa Elena, which
concentrates the largest number of economically active population in this sector, are
determining factors for this study.
The basis of the economy in the canton La Libertad is trade, the same that occurs mainly
by SMEs in the sector, reaching a number of figures of 408 companies in the commercial
sector in the province of Santa Elena, according to data from INEC in 2018; However,
there is no accurate information of commercial enterprises in the canton La Libertad,
most SMEs have been born informally and with little administrative knowledge, but over
time only 5% have managed to be sustainable over time and have managed to grow and
be sustainable and have also generated direct and indirect jobs, thus improving the
economy of the canton.
Sergún Garzón González, (2017) currently financing means an important support for
financial management in commercial companies, because by obtaining bank loans allows
e-ISSN: 2576-0971. January - March Vol. 8 - 1 - 2024 . http://journalbusinesses.com/index.php/revista
45
them to continue with their operations, expand their businesses, thus responding to the
business market that is increasingly competitive; it is for this reason that the
administration of the resources obtained must be in a correct way, with the intention
of ensuring the good destination of the same, which contribute to the achievement of
the proposed business objectives and goals, in such a way that allows them to strengthen
the business sustainability and avoid the closure of the company.
In the canton of La Libertad there are financial institutions such as: Cooperativa 29 de
Octubre, Cooprogreso, Jardín Azuayo, Juventud Ecuatoriana Progresista, Cooperativa
Nueva Huancavilca, Cooperativa Fernando Daquilema, among others; becoming the
financial sector supporting economic and productive activities in the canton, through
services such as demand deposits, time deposits and a number of services that are tools
available to customers. This research focuses on the analysis and relationship of the
variables; financial management and profitability of commercial enterprises in the canton
of La Libertad.
In the present study the variables financial management and profitability will be evaluated
through the application of a survey directed to the owners and managers of the
commercial enterprises of the canton of La Lrtadibe; this work is also based on its
theoretical bases both of the variable financial management and profitability, cases of
previous studies that will serve as background and relevant information collected in the
research process, respecting the methodology that frames the present study where
through the analysis and interpretation of results will allow the design of the model of
sustainable financial management, finally conclusions and recommendations of the
subject of study are formulated.
For Abdulla Y., (2020), within the economy, financing is fundamental, because the
financial institutions when placing new loans and updating the forms and means of
payment allow a better distribution of goods and services among the economic agents
of a society; when the financial system has failures, it affects the supply and demand of
the same, the allocation of funds to new companies and constituted companies should
be analyzed, and on the other hand, situations that increase the need for new credits
should be analyzed.
Formal financing is that which comes from financial institutions, such as: savings and
credit cooperatives, banks, savings and loan associations, and others under the
supervision of the Superintendency of Banks and other control and regulatory agencies.
This type of financing is characterized by: privacy and confidentiality of personal and
credit data, variety of offerings according to the different business and personal realities,
accompaniment and training for clients. According to Riofrío (2021), it is important for
traders to be aware of the various sources of financing, as well as their origin, which
may be public, private or internal, because the lack of this information influences the lack
of formal financing.
According to Aguilar, (2017) internal financing is provided autonomously thanks to the
profits obtained, external capital financing is provided by the contributions of the owners