Analysis of the importance of SMEs in the economy of Ecuador

Abstract

Introduction. This research analyzes small and medium-sized enterprises (SMEs), which are organizations with limited resources that operate in a specific place and with small capital but with great virtues such as excellent flexibility to face market changes; in addition, SMEs have high participation in the economy, because it promotes employment and generates wealth, which is why it has been noted that over time they have had significant growth. Objective. This research aims to analyze the importance of SMEs in the economy of Ecuador by reviewing the state of the art, diagnosing the different databases, and determining the correlation of the variables. Methodology. The research assumed a non-experimental method because a situation will not be constructed, but other existing conditions will be observed. Results. Most companies in Ecuador belong to family organizations. SMEs are an economic unit that stimulates sources of employment, and due to their size, they are characterized by their rapid adaptation to changes in the environment; however, they have been stopped by the lack of support in obtaining financial resources that would allow them to improve their structures and survive in the market over time. Conclusion. SMEs generate 32.38% of the total registered employment, contributing 7.5 million dollars annually, supporting the country's economy; however, it must be considered that financing sources are a severe problem that affects their sustainability. General study area: Administration and Economics. Specific study area: SME Study.