Financial education and its impact on the management capacity of merchants of the municipal public company Agricultural Producers Market Riobamba´s San Pedro (EP-EMMPA)

Abstract

The objective of this research was to determine the levels of financial education of the merchants of the public company Agricultural Producers Market Riobamba´s San Pedro EP-EMMPA, and its impact on management capacity; from a universe of 946 permanent tenant merchants, a representative sample of 195 was obtained, to whom a survey was applied using the random method on aspects related to: level of education and financial knowledge; behavior and attitudes in relation to investment, financing, saving and management of basic financial tools. The relevant findings evidenced the empirical management of finances by the merchants of the Riobamba wholesale market, due to the low level of financial education that affects the ability to manage and manage their economic resources. At the same time, they generate serious difficulties such as: over-indebtedness, lack of investment, poor savings and financing of commercial activity through informal sources with high financial and social costs. The research concludes the need for knowledge transfer that allows in the medium and long term to strengthen the financial culture of merchants through financial training and education programs with direct participation of the Universities and Polytechnic Schools of the town through their Management Faculties. Companies and community engagement units.