Advantages and disadvantages of the implementation of simplified joint-stock companies in public procurement in Ecuador

Abstract

Introduction. Small and medium-sized enterprises (SMEs) are fundamental for economic development, standing out in employment and innovation. Their legal organization, such as Simplified Corporations (SAS), facilitates their sustainability and access to markets. This study analyzes the advantages and challenges of SAS in Ecuadorian public procurement. Objectives.  The main objective of the study is to examine the impact of Simplified Public Limited Companies (S.A.S.), addressing their main advantages and disadvantages. Methodology.  The methodology was based on a qualitative approach, using an exhaustive review of Ecuadorian scientific and regulatory literature, complemented by the analysis of documented cases. Results. Among the main results, benefits such as administrative simplification, cost reduction, and promotion of supplier diversity were identified, as well as disadvantages related to unequal competition, supervisory risks, and concerns about the technical quality of the awarded works. Conclusions. The study concluded that, although SAS represents a valuable tool to democratize access to the public market, their implementation requires regulatory adjustments that mitigate risks and promote more equitable competition. In this way, it seeks to maximize its benefits, while guaranteeing economic sustainability and quality in public procurement processes. General area of study: Administrative Sciences. Specific area of study: Public Procurement. Item type: Original.