The Financial Administration as a tool for the optimization of the financial resources of the MiSMEs in Ecuador for their sustainability

Abstract

MiSMEs in Ecuador face one of their main constraints in accessing external finance, which compromises their sustainability and growth capacity. This study evaluates the impact of Financial Administration (FA) as a tool to optimize financial resources and improve the competitiveness of MiSMEs in Ecuador. The research, based on a quantitative approach, uses surveys applied to 384 MiSMEs from various sectors during 2020 and 2021. Variables such as liquidity, solvency, indebtedness and profitability were analyzed using multiple linear regression technique to identify significant relationships between these variables. The results show that companies with a structured Financial Administration (FA) achieve better and optimal liquidity and profitability indexes, achieving more sustained growth compared to those without clear policies. The adoption of an appropriate financial administration (FA) is essential to access external finance and ensure business sustainability.