Funding is a critical axis in the sustainability of entrepreneurship in the canton of Riobamba

Abstract

Introduction, Jean-Baptiste Say argued that every offer generates its own demand, starting from that statement it is essential to undertake, therefore, this research Objective to determine the sources of financing of the undertakings executed in the Riobamba canton, and at the same time establish the variables that impede access to financing and hinder financial sustainability. Methodology, this study was based on a qualitative and quantitative approach, with a deductive process, the scope was descriptive since a reality is detailed, we worked with a population of 74 enterprises of the Riobamba canton, analytical and synthetic methods were combined. Among the results obtained, it is established that in the Riobamba canton 57% of the ventures are financed with their own funds, and 27% are financed with bank credit, Result, it has been determined that one of the main variables that prevent access to financing are the interest rates, which depending on the financial institution vary between 5 and 20% and even exceed this range, Conclusions, it is important to consider is the Pandemic that has directly impacted on the income of entrepreneurs and therefore on Its profits, this situation, interest rates, among others, are critical factors that affect the financial sustainability of the ventures, and could cause bankruptcy or closure, if the government does not implement rescue policies for this sector, such as the establishment of a unique and preferential interest rate for entrepreneurs.