del cantón La Libertad, 2022

Dayse Lissette Salazar Reyes

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ABSTRACT

Financing is very important for the operation of

commercial enterprises, its proper management

profitability of commercial enterprises in the canton

of La Libertad, through the analysis of each of the

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

works as Assistant of the Financial Area of Disensa Beltrán

Company. Orcid: 0009-0001-8619-1578

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Bachelor's degree in accounting and auditing from Universidad

Laica Vicente Rocafuerte de Guayaquil, Master's degree in

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

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

indicadores de rentabildiad, rentabildad

needs of the business line, in some cases they will be: inventories, in others their

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;

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 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,

contrary in an unprofitable company for the permanence of its assets financing is

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.

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

Sergún Garzón González, (2017) currently financing means an important support for

financial management in commercial companies, because by obtaining bank loans allows

the business sustainability and avoid the closure of the company.

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

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.

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

benefits of acquiring external financing from different sources and forms; b) lack of self-

partners; and the difference in valuing the company between the owner and the investor

or lender.

According to Perez & Titelman, (2018) financing has become a very important tool for

any type of company, according to the type of financing, whether short or long term will

depend largely on the characteristics and turn of the business, this process is called

acquisition of resources through forms of payments, which will serve to compare the

capital goods required by the company to start or continue.

Among the forms of financing is internal financing, which is the capital that the company

allocates as reserves and provisions, maintaining this financing represents a minimum

cost for the entity; on the other hand, external financing is offered by financial entities

and planning tools; this education allows people to improve their quality of life by

correctly using financial products with previous knowledge and certainty. At the same

time, it benefits the relationship between the financial system and clients; initially the

client will correctly identify his needs, demanding timely services, while the institutions

will have the facility to create, innovate and improve their financial products based on

the realities of their clients.

According to Navarro, Crespo, & López, (2018) for commercial enterprises, financing is

fundamental, due to the fact that because of their economic conditions and solvency

they are unable to sustain themselves over time, and opt for increased sales and

financing; not all MSEs meet the requirements and know the procedures to obtain credit

According to Pérez & Titelman, (2018), commercial enterprises constantly challenge

barriers to obtain financing within the region and its countries, these barriers are:

For Hernando, (2021) one of the benefits that MSEs would achieve by obtaining formal

reflected in the acquisition of new machinery and equipment, hiring more personnel,

new subsidiaries, among other benefits. If companies were to obtain formal financing,

they would obtain the advantage of growth, increased solvency and greater productivity.

Formal financing of commercial enterprises allows investment in other areas such as:

technology, research, training, skills development, improvement of production

processes, quality, marketing, among others that allow for greater competitiveness and

differentiation from the competition, and in turn a greater attraction of customers and

sales. For the authors (Rodríguez Morales, 2022), the formal financing of companies can

be directed to other factors, such as the management of investment risks, liquidity,

external contingencies, instability of raw material prices and changes in demand.

business activity or to sustain it; these resources can be obtained through the financing

of partners or owners, known as internal financing, and also obtained through credits or

loans, which is called external financing.

For the calculation of profitability, financial ratios are used, which according to (Valle

Nuñez, 2020) are: financial profitability or return on equity, and economic profitability

or return on assets; which denote the company's ability to generate profits from its

equity, income and assets. However, these ratios do not answer the research question:

What factors determine the levels of corporate profitability? (Oñate Paredes, 2020)

considers that the factors that affect profitability are internal factors, such as: financial

ratios and number of workers; business environment factors such as: macroeconomic

on profitability and that indebtedness also affects it, meanings that are supported by the

authors Ugando Peñate, et al, (2021) who mention the existence of an inverse

effectiveness of a company, and that is visualized through the profits obtained in a certain

costs, expenses and investments through policies applied in a period of time, that

contribute in the increase of sales generating actions with better profit before its

partners or owners. There are the following types of profitability:

Financial profitability: its return is obtained by the company's own capital and,

regardless of the distribution of the results, it aims at the return of its shareholders or

owners after paying their debts; that is to say, it is an indicator that generates wealth in

favor of its shareholders or owners.

Economic profitability: it is the one that measures the return on assets, its indicator

called R.O.A. establishes the relationship between the profit before taxes and the total

assets that the entity has, measuring the profitability independently of its maintenance, if

analysis of the financial situation of the company, this system is represented through

management indicators, becoming instruments used by management in decision making.

Management indicators have become a basic tool to direct, manage and control the areas

of the company, such as production, marketing and human resources, so many

companies tend to apply indicators in each of its departmental areas with the intention

of being more efficient and optimize resources; on the other hand, in the world of finance

indicators serve for the analysis of financial statements, which through financial ratios

such as liquidity, leverage, profitability, growth, liquidity, behavior of assets and liabilities,

contribute to the diagnosis of the company situation. (Oñate Paredes, 2020).

According to Tacuri & López, (2021) the responsibilities of the financial manager of a

as: cost of capital, leverage and dividend policy, these being the most common in long-

Leasing or acquisition of fixed assets.

4. Extension of term of accounts receivable.

5. Provide percentage discounts on accounts receivable within the established term.

6. Determine the amount of cash flow for daily operations.

According to Vera & Iglesias, (2018) through the evaluation of economic results and the

comparison of profitability with respect to its previous exercises, it is possible to

determine the business growth as a benefit; while a company that does not generate

profitability is subject to problems of decrease of its shares in the market. Companies

are currently seeking to increase their profitability, where the strategic planning they

execute will be key for the proper management of cash flow; however, there are other

internal factors associated with obtaining profitability that have an impact, such as

considered necessary to establish a sustainable financing management model that allows

for the enhancement of profitability through the efficient use of resources.

For the development of the research, the descriptive approach was used to carry out

the situational analysis of the commercial enterprises of the canton of La Libertad, in

relation to the way of obtaining financing and its impact on profitability, through the

desegregation of the study variables. On the other hand, correlational research was used

to establish the critical factors associated with financing and profitability, through surveys

of the companies that were part of the study.

To obtain the results of this research, the inductive method was used in order to learn

about the object of study, for the design of actions to achieve business sustainability,

business activities.

because the financial or cash value facilitates the implementation of certain strategies,

other forms of valuations within the company are related to plans for employees,

retirements, taxes, mergers, acquisitions, audits, among others.

The points mentioned above, can be considered as a process for decision making in the

implementation of strategies and policies, especially in the administrative and financial

areas, at this point it is important that managers and owners before implementing any

of the strategies mentioned, analyze the economic resources available to the company

and determine the most profitable and productive use that can be given to these

resources, to thus foresee the expected results and know the value of the company,

objectives and growth of the company.

On the other hand, (Riofrío, 2021) indicates that the key to financial success in a

company is the knowledge possessed by its directors, managers and owners, and for

those companies that do not have personnel with knowledge of finance and accounting,

it is recommended to hire professionals who are prepared to manage the amounts,

terms and adjustment of financing, as well as knowledge of amortization flows,

management of accessible markets and credit risks.

According to Sanchez & Lazo, (2018) profitability is defined by the Central Reserve Bank

as the ability of an asset to generate profit; it is a ratio of the figures of a certain

investment and the benefits obtained once taxes are deducted and this is always

expressed in relative terms, profitability is the term that premium in an economic activity

or several options in the decision making process and that with a good administration

of capital would achieve growth.

financial management and profitability are the study variables of this research, where the

the second variable focuses on measuring economic performance in a given period.

Despite the great contribution made by SMEs to job creation and poverty reduction,

they encounter barriers in accessing financing services from banks and savings and credit

cooperatives, which has been triggering a series of constant problems in the sector, such

as the impossibility of promoting productive investments, All of this has a negative impact

on the profitability of the companies, which is reflected in the loss of commercial

opportunities, over-indebtedness, low productivity, unsustainability in the long term,

lack of liquidity, and the continued informality of the sector.

CONCLUSIONS

affect the levels of profitability, because this study determines that financial strategies

are not implemented due to the lack of a control system in the activities carried out by

the companies, which makes it impossible to make appropriate decisions in order to

improve and eliminate their weaknesses as a company.

The design of a financial management model for commercial enterprises in the canton

of La Libertad will strengthen business sustainability through the application of

sustainable financing strategies.

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