Microcredits and their impact on economic reactivation in the Austro region six.

Abstract

Introduction. Financial entities advance in their commitment to financially empower entrepreneurs who are people who, based on their own or another's idea, can create a business opportunity, in the form of a company also called a startup, often assuming a financial risk in doing so. His profile includes traits such as confidence in the idea, capacity for conviction, clear search for results, intensive dedication, and great commitment. objective. Study the impact of microcredits granted by financial institutions in the economic reactivation of the Austro region. Methodology. The design was based on the positivist research paradigm, with a non-experimental and cross-sectional field design, documentary support and a descriptive level. The sample used was addressed to 157 microentrepreneurs who have benefited from different lines of credit. Results. Among the most frequent results we have the microcredits destined to the reactivation of the business (39.49%), to new investments (21.66%) and to the diversification of the line of business (19.11%); These companies develop new products each time or expand into new markets. According to the surveys, 85% of the businesses that were supported with microcredits are applying recent sales policies in installments. The industrial sector that previously manufactured a specific product, today that same product, is manufactured in unusual ways and with different presentations, sizes, flavors, colors, and prices, based on the imagination and creativity that are maintaining the economy and improving activities, not only those that correspond to the productive function but also to the commercial function. Conclusion. The microcredits provided by financial institutions to different target groups in society are encouraging people to conduct entrepreneurship; thus, contributing to improve its sales and, therefore, to generate employment, include society and improve the quality of life of those who live in the provinces of Azuay, Cañar, and Morona Santiago, in the Austro region.