Productive microcredit as a catalyst for the peasant economy in the Austro region

Abstract

The indicators of indigence, inequality in the distribution of income, unemployment and the concentration of credit in the Republic of Ecuador justify the need to focus the study of mechanisms that contribute to economic and social growth.
Society creates barriers that deny people access to employability, and therefore access to a better quality of life. The inhabitants of the rural sectors, depending on their geographical location and conditions, have to engage in informal activities such as agriculture mainly for their daily sustenance. Because of its constant informality in underdevelopment; in a world where there are barriers that prevent taking advantage of the markets, accumulating capital and increasing productivity.
The creation of a community bank is part of the solution, playing an inclusive role aimed at providing financial services to this segment of society, with the main premise of contributing to improve the socio-economic conditions of low-income families, in such a way so that small producers can promote agricultural and livestock initiatives that allow improving the quality and diversity of the family diet, integrating families into the economically active population.
The objective of the research was to determine the level of impact and contribution to the real economy of the twenty-four beneficiary sectors of the seed capital placed by the New Horizons Foundation for the granting of microcredits in the Austro region. For this purpose, variables such as: destination of the credit, productive sector it serves, forms of organization, business model focused on training, productivity, credit system, profitability and competitiveness were included in the study.

The analysis carried out in the rural parishes of the Austro region, allowed to identify and measure the impact that microcredit has had in the peasant sectors, through the empirical verification of the model that was carried out by means of a data panel of twenty-four banks. community communities in the area, additionally, surveys were applied in order to identify the supply of microcredits in the study areas, concluding that the management of the New Horizons Foundation generated a high impact in terms of boosting employment and boosting the economy , achieving the participation and empowerment of families translated into the improvement of productivity and therefore of socioeconomic conditions through access to credit and technical assistance provided by Community Banks, undoubtedly an important factor in the economic development of families in these sectors.